Why funds accumulate on my account and how to avoid it?

Loans that you have invest in will inevitable start bringing in repayments. As a result, a part of the invested capital (principal) will be sent to you together with the interest based on the loan schedule.

Consequently, you might see that money accumulates in your marketplace account.

Because the capital that is not invested does not earn any profit (interest), you want to avoid having any uninvested funds in the account as much as possible.

There are several ways to do it:

1. Manually review your account on a regular (bi-weekly or weekly) basis
2. Create automated investing strategies based on your own conditions that will reinvest the money if the loans get repaid
   1. Review the settings of the strategies from time to time to see whether they match the current market offering as it could be the case that loans that were available previously have changed and, hence, not available for investing anymore.

If you see that it becomes hard to deploy capital on a particular marketplace and there are always some invested funds, something called a "cash drag" has occurred.

You can learn more about it and how to avoid it here.