All persons who register as an investor on LEOpropcrowd should read the following warnings carefully before making any investment.
1. Your personal decision to invest
A decision to invest is a personal investment decision by you and no responsibility for the consequences of that decision is accepted by LEOpropcrowd or by any of its directors, agents, employees or other members.
2. Losing all of your investment
Investment, whether in new or existing companies, carries high risks as well as the possibility of high rewards. Investing in these companies may involve a significant risk of losing all of your investment and these investments are much riskier than a savings account. ISA eligibility does not guarantee returns or protect you from losses. You should only invest an amount you are willing to lose and should build a diversified portfolio to spread risk. If a company you invest in fails, neither the company – nor LEOpropcrowd – will pay back your investment. Investment losses through this platform is not covered by the Financial Services Compensation Scheme (FSCS).
3. Lack of liquidity
Liquidity is the ease with which you can sell your investments after you have purchased them. As an investor, you should be aware that no established market or exchange exist for the trading of these investments, and it may be difficult or impossible to find a buyer to purchase them. Investments through LEOpropcrowd should be viewed as long term and illiquid investments.
4. Investing in shares/equity – lack of dividends
Dividends are payments made by a company to its shareholders from the company’s profits. Investing in shares, also known as equity, on LEOpropcrowd does not involve a regular return on your investment, even though you are a shareholder of the company. This means that you are unlikely to see a return on your investment until you are able to sell your shares. Companies have no obligation to pay shareholder dividends.
5. Investing in mini-bonds
A mini-bond is an illiquid debt security, which is essentially a loan note issued by a company (the Issuer) to you for a sum of money, in exchange for a fixed rate of interest over a set investment term. Mini-bonds are a very different kind of investment to equity and you do not own a stake in the business issuing the mini-bond. Before investing, you must read and agree to the Bond Instrument for each mini-bond as these contain the exact terms and conditions, including the interest payments and final repayment time between investors and the company raising the money. It is important to understand that Issuers are solely responsible for their financial status and consequently, their ability to pay interest and return investors’ capital when the mini-bonds mature. LEOpropcrowd does not issue the mini-bonds listed on the LEOpropcrowd platform and is not responsible for their performance. Issuers, like all businesses, are vulnerable to financial difficulty and investing in mini-bonds may involve significant risk of default. In the event of an Issuer being unable or unwilling to meet payments of interest and capital, you should consider that you may lose some, or all, of your initial investment and receive no outstanding or future interest payments.
6. The need for diversification
Diversification by spreading your money across multiple investments will reduce investment risk. You should only invest a portion of your available investment funds via LEOpropcrowd and balance your LEOpropcrowd investment with different investment classes. You should also consider avoiding putting your money in the same investment as immediate family members. Please note that diversification does not assure a profit or provide a guarantee against investment loss.
LEOpropcrowd does not give investment advice or provide analysis or recommendations regarding investment opportunities. Investments can only be made by users of LEOpropcrowd website on the basis of information provided. LEOpropcrowd takes no responsibility for this information or for any recommendations, opinions or predictions. You should seek your own independent legal and financial advice.