Investors Knowledge Base
The following is a nonexhaustive list of general risks that are associated with Title III investments displayed on our funding portal platform. Investors should review the issuer’s offering documentation for additional information related to risk and consult with a qualified financial and tax advisor prior to making any investment.
Risk of Loss: The risk that the Investor may not receive part, or all, of the amount invested to purchase the security. Investors should only invest money in Title III securities that they can afford to lose.
Liquidity Risk: The risk of a lack of an active secondary market for securities purchased. Investors will not be able to sell Title III securities for the one year resale restriction period. Further, there may not be a ready market to sell Title III securities after the restricted period is over.
Market risk: The possibility for an Investor to experience losses due to factors that affect the overall performance of the financial markets in which the Investor is involved.
Interest rate risk: The risk that arises for bond owners from fluctuating interest rates. How much interest rate risk of a bond depends on how sensitive its price is to interest rate changes in the market. The bond’s sensitivity depends on two things: the bond's time to maturity and the coupon rate of the bond.
Inflation Risk: The risk that the purchasing power of the investment asset does not keep pace with the purchasing power of another asset such as the currency used to initially purchase the investment asset.
Performance Risk: It is not possible to predict the performance of a company based upon its past performance. Past performance is not indicative of future results, and there can be no assurance that targeted results will be achieved. Loss of principal is possible, and even likely, on any given investment.
Dilution Risk: The risk that the issuing company may issue additional equity securities in the future, which will result in the percentage of ownership that the Investor previously held being lower after the additional issuance of equity.