Please read this risk summary carefully to understand the possible dangers of investing through Revenue-Based Financing (RBF). Always invest responsibly and diversify your assets.

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Diversification

Diversification means spreading your capital across different asset classes with different risk profiles. This helps to limit, without eliminating, the overall risks incurred. FBR financing can be part of a broader portfolio strategy, but should not be your only investment vehicle. Investors should take care to balance riskier operations such as RBF with safer, more liquid assets.

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Risks associated with Revenue-Based Financing

1. Investment loss
   Investing in a start-up or expanding company via RBF carries a high level of risk. Many companies don't grow as planned, or go bankrupt. If the company fails, you could lose all or part of your capital, since repayment depends on the revenues generated by the business. Neither the company nor the platform offering the FBR investment is obliged to reimburse you in the event of insufficient revenues.
   
   
2. Irregular or insufficient payments
   Payments to investors under an FBR are generally calculated as a percentage of the company's sales. If sales fluctuate or are lower than estimated, your payments may be lower or delayed. Unlike fixed-rate products, returns depend strictly on the company's actual performance.
   
   
3. No Shares, No Dilution
   With RBF, you receive no shares in the company. You therefore have no shareholder rights, no dividends, and no direct influence on corporate governance. The advantage is that, when new funds are raised, you are not diluted, but your return depends solely on the company's future ability to generate income.
   
   
4. Lack of liquidity
   Even though RBFs are not equity securities, they may lack liquidity: you may not be able to sell or transfer your investment freely. There is often no secondary market for this type of contract. You must therefore be prepared to hold your position until the agreed redemption multiple is reached or the agreement is terminated.
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5. ‍NoTax Advantage Guarantee
   Unlike some equity investments, RBF does not entitle you to any particular tax advantages. Your personal tax situation may vary, and there is no guarantee that tax exemptions or deductions will apply or remain in force.‍‍

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Summary

• You could lose part or all of your investment if the company runs into financial difficulties or fails to meet its targets.
• Repayments are directly indexed to the company's sales, and are therefore neither fixed nor guaranteed over time.
• RBF investments do not confer ownership or shareholding rights.
• The opportunities to exit your FBR investment early or to resell it are generally very limited.
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Only invest what you can afford to lose. When in doubt, seek advice from an independent professional, and always consider diversifying your investments.

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