Investment risks

Like any other investment opportunity, the offers presented on the Revofund Platform involve many risks. It should be noted that the realized risk may cause significant deviations from the expected return, which results in profit or loss. All possible losses are borne by the Investor, therefore we recommend that you thoroughly analyze and evaluate any investment risks, consider their consequences before making an investment decision. Before starting operations on the Revofund platform, carefully read the list of threats below. The list is not final and does not cover all risks that may potentially affect the profitability of your investments.

Concentration risk

Concentration of investments only on one category of assets or type of investment results in high exposure to a given class of assets or type of investment. Therefore, even the smallest fluctuation can affect the rate of return to a very large extent.

Credit risk

On the Revofund platform, you can invest in many different loans. The repayment of the investment depends directly on the repayment of individual borrowers. In some cases, loans are secured with assets that are easy to liquidate, which – if the borrower fails to meet their repayment obligations – does not result in loss of capital and interest. Sometimes loans are unsecured, which can make enforcement and repayments relatively more difficult. In order to reduce the exposure to credit risk, we recommend investing only in secured loans.

Liquidity risk

Depending on the repayment discipline of the borrower and other factors, the expected investment period may vary and be subject to change, which may be extended for a certain period, and hence, reduce the financial liquidity of the Investor. Before making an investment, carefully evaluate your ability to hold your investment to and beyond the expected maturity.

The risk of losing capital

Most companies that are at an early stage of development and many other development-oriented companies are going bankrupt. You should not invest more money than you can afford to lose without changing your standard of living.

Dilution in capital

All investments made in companies presented on the Platform may be diluted. This means that if the company acquires additional capital at a later date, it will issue new shares for new investors, your share in the capital of the company you own will decrease. These newly issued shares may also have certain preferences regarding the right to dividends, sales proceeds and others, and the use of these rights may be against you. Your investment may also be diluted as a result of granting options (or similar rights to purchase shares) to employees and service providers.