All the investment opportunities listed on the website are associated with a number of risks. Risk is a deviation from the expected outcome of the investment, which may result in not achieving investment targets.
Before making any financial decisions on the website, please carefully read the list of possible risks that you may face. The list is not definite and does not cover all risks that can potentially impact performance of your investments.
1) Liquidity risk
The risk of being unable to sell your investment at a fair price and get your money out when you want to. To sell the investment, you may need to accept a lower price. In some cases, such as exempt market investments, it may not be possible to sell the investment at all.
2) Inflation risk
Higher prices lower the purchasing power of your investment, but if the inflation rate is higher that real rate of return, it might result in direct losses.
3) Regulatory risk
Regulatory or legal risk arise from the fact that local governments and other regulatory bodies have an important effect on economic environment for the investment activities. When government changes legislation often, e.g. imposes an additional tax on personal income or introduces new taxes in real estate sphere, it can affect the investment climate in the region and may lead to reduced eventual returns from the investment.
4) Repayment risk.
The target company can pay the borrowed capital back at any point in time before the end of the loan period and investor can not prevent this.
5) Currency risk
All loans listed on IAMCROWDFUND are listed in Euros. In case of depositing funds in different currency, please be aware of possible fluctuations of the currency exchange rate. These fluctuations can result in both higher losses and profits.
6) Third Party failure risk
IAMCROWDFUND is choosing it’s partners very carefully and making a sufficient investigation of every company and offer before signing an agreement with each of the borrowers. Nevertheless, IAMCROWDFUND may not secure it’s investors from third party full or partial failure which can directly impact on expected returns.