ARBITRATION FUNDING AGREEMENT — TEMPLATE v1.0 · LEXQUITY JUSFUND
PARTIES
Funder: [Funder Entity Name], a company incorporated in [Jurisdiction] ("Funder")
Fundee: [Party Name / Authorised Representative], being the [Claimant / Respondent] in the Arbitration ("Fundee")
RECITALS
(A) The Fundee is a party to arbitration proceedings (the "Arbitration") identified as [Case Reference / ATID].
(B) The Funder wishes to provide third-party funding in connection with the Arbitration on the terms set out herein.
(C) JusFund is a technology marketplace platform that has facilitated the connection between the parties. JusFund is not a party to this Agreement and assumes no obligations hereunder.
1. FUNDING COMMITMENT
1.1 The Funder commits to provide up to [USD X,XXX,XXX] (the “Committed Capital”) to fund the Fundee’s legal costs, expert fees, and other reasonable disbursements in connection with the Arbitration.
1.2 Drawdown requests shall be submitted in writing with supporting invoices no less than [10] business days in advance.
1.3 The Funder reserves the right to withhold funding if the Fundee materially breaches this Agreement.
2. RETURN STRUCTURE
2.1 In consideration of the Committed Capital, the Fundee agrees to pay the Funder the higher of: (a) [20]% of any Recovery; or (b) [2.5×] the total capital deployed (the “Return”).
2.2 “Recovery” means all sums received by the Fundee pursuant to the Arbitration award, settlement, or other resolution, net of enforcement costs.
2.3 Where no Recovery is obtained, the Fundee owes no repayment to the Funder (non-recourse structure).
3. CONFIDENTIALITY
3.1 Each party shall keep confidential all information relating to this Agreement, the Arbitration, and the other party’s affairs, save where disclosure is required by law or court order.
3.2 This obligation survives termination of this Agreement.
3.3 Nothing in this Agreement alters the parties’ existing confidentiality obligations under the arbitration agreement or applicable rules.
4. CONTROL OF PROCEEDINGS
4.1 The Fundee retains full and exclusive control over the conduct of the Arbitration, including all strategic, procedural, and settlement decisions.
4.2 The Funder shall have no right to direct, control, or interfere with the conduct of the Arbitration or the Fundee’s legal representation.
4.3 The Funder may request reasonable updates on procedural milestones. The Fundee may grant milestone-only visibility through the JusFund Bridge System.
5. TERMINATION
5.1 The Funder may terminate this Agreement by written notice if: (a) there has been a material adverse change in the merits of the Fundee’s case; (b) the Fundee has materially breached this Agreement; or (c) the Arbitration is discontinued or settled without the Funder’s prior written consent.
5.2 The Fundee may terminate at any time on [60] days’ written notice, subject to repayment of all deployed capital and a [X]% termination fee.
6. GOVERNING LAW & DISPUTE RESOLUTION
6.1 This Agreement is governed by [English Law / Swiss Law] [ClauseVault — to be agreed].
6.2 Any dispute shall be finally resolved by arbitration under [ICC / LCIA] Rules, seat at [London / Geneva].
6.3 Nothing prevents either party from seeking urgent interim relief from a competent court.
7. GENERAL
7.1 JusFund Acknowledgment: JusFund is a technology platform only and has no liability under this Agreement.
7.2 Platform Service Fee: A 5% fee on Committed Capital is payable to JusFund on deal completion per JusFund’s Terms of Service.
7.3 PACCAR Compliance: The parties confirm this Agreement complies with applicable litigation funding regulations.
7.4 Entire Agreement: This Agreement supersedes all prior negotiations.
7.5 Amendments: No amendment is effective unless in writing and signed by both parties.
⚠️ This template is provided for information purposes only and does not constitute legal advice. Parties must obtain independent legal advice before executing any funding agreement. Terms subject to negotiation via ClauseVault.