Arbitration funding lets a claimant use a professional funder's capital to meet agreed case costs. In a non-recourse arrangement, repayment depends on a recovery. The funding agreement sets the return, the costs covered and the conditions that apply.
For claimants and counsel considering funding for an arbitration.
What is arbitration funding?
A third-party funder agrees to finance some or all of the costs of pursuing an arbitration in exchange for a contractual return if money is recovered. The budget may cover lawyers, experts, tribunal fees and institutional charges. Cover for an opponent's costs, or security for costs, needs to be addressed separately in the arrangements.
Funding can help a claimant that cannot meet the budget. It can also suit a business that can pay but wants to manage its exposure to the cost and uncertainty of a dispute. The funding decision depends on the claim and the funder's own criteria.
- 01Funding agreed
The claimant and funder agree the budget, return and conditions.
- 02Case costs paid
The funder provides capital for the costs covered by the agreement.
- 03Recovery distributed
If money is recovered, it is shared under the agreed terms.
For non-recourse funding, no recovery generally means the funder loses the agreed funded amount. Other liabilities and contractual conditions may still apply.
What matters in arbitration?
An arbitration may involve parties, evidence and assets in different countries. Funding review therefore needs to consider the law governing the claim, the seat of arbitration, the applicable rules and the countries where an award would need to be enforced.
The New York Convention provides a framework for recognising and enforcing foreign arbitral awards in contracting states. Enforcement is subject to conditions and possible grounds for refusal. An award also needs reachable assets behind it: legal enforceability and actual collection are separate questions.
What do arbitration funders assess?
A funder examines the legal basis of the claim, the evidence supporting it and the strongest available defences. It also considers the amount that could realistically be recovered, the budget, the timetable and the respondent's ability to pay.
Prepare a clear chronology, the key agreements, the relevant correspondence, a supported calculation of loss and a costed plan from the legal team. Identify gaps and adverse documents as well as the strengths. A complete record helps a funder decide what further diligence it needs.
Each funder has its own mandate, claim-size preferences and risk limits. A strong assessment does not guarantee that a case will meet those requirements or receive an offer.
How much does arbitration funding cost?
The agreement determines what the funder receives from a recovery. Terms can use a multiple of the funding, a percentage of the proceeds or a combination. Check whether a quoted multiple includes repayment of the original capital, whether returns increase with time and which costs are deducted before the claimant is paid.
For non-recourse funding, the funder generally bears the agreed funded loss if there is no recovery. That does not remove every potential liability for the claimant. The contract, termination provisions, adverse-costs exposure and any insurance arrangements still matter.
- Capital returned to funder
- £1m
- Additional funder return
- £1m
- Remaining for claimant
- £3m
Assumes £1m previously funded and a further £1m agreed return, with no other deductions. Actual agreements may include other costs, fees, priorities and tax consequences. These invented figures explain the arithmetic; they are not a quote or typical terms.
Confidentiality, privilege and disclosure
A funder needs enough information to assess the case. Start with what can safely be shared and agree the conditions for any further disclosure. Confidentiality and legal professional privilege are distinct: an NDA does not settle every privilege question. Counsel should assess the applicable law and the material before disclosure.
Funding-disclosure duties may also apply. For example, Article 11(7) of the 2021 ICC Rules requires disclosure of the existence and identity of a qualifying third-party funder. Check the rules and version applicable to the arbitration; a private funding arrangement does not override those duties.
Source: ICC note on the conduct of arbitration under the 2021 Rules
Where JusFund fits
JusFund provides a written assessment of an arbitration claim based on the documents submitted and relevant public sources. The report explains the findings, the evidence gaps and the assessment's limitations. A second AI model reviews the assessment.
The fund seeker reviews the report first and decides whether to list the case. Approved funders initially see a case summary; full report access follows the fund seeker's approval through the NDA process. Funders conduct their own diligence and the parties agree any funding terms directly.
JusFund is a technology marketplace. It does not provide capital or legal, financial or investment advice. An assessment is AI-generated research output, not a guarantee of funding or the outcome of an arbitration.
How JusFund works for fund seekers · For professional funders
How the assessment is made
JusFund reads the case record, researches the relevant context, assesses eight areas and checks the result using a second AI model. The report goes to the fund seeker for review before any listing decision.
Read the assessment methodology or view a sample assessment to see the findings, evidence and limitations in context.
Sources and further reading
- UNCITRAL guide to the New York Convention (opens in a new tab)Recognition, enforcement and the grounds for refusal; 2016 Secretariat Guide.
- ICC note on the conduct of arbitration under the 2021 Rules (opens in a new tab)Third-party funding disclosure under Article 11(7). Check which rules and version apply to your arbitration.
- SRA guidance on third-party litigation funding (opens in a new tab)Funding arrangements, confidentiality and privilege. Guidance for SRA-regulated legal professionals in England and Wales.
Review your arbitration claim
Your first assessment is free. Read the findings before deciding whether to list your case for funders.
Start your assessment