KEY RISKS - Equity

1. General Risk Warnings

All material provided on the Website is only for educational purposes and states the risks associated with investing on the FracAssets Platform. You acknowledge that you have read, understood and accepted the nature of such investments and the Key Risks associated with them.

Investments in Late Stage Unlisted and Startup companies are risky investments. Having understood this:

1.1 You are accessing and using the information on the Website at your own risk. Registered Users will again be reminded of these risks while accessing Equity Investments on the Website.

1.2 FracAssets strongly recommends You to diversify your portfolios across other asset classes. You also understand and agree that investing in Late Stage Unlisted and Startup Investments are not secure and not liquid investments and you you can lose your complete capital also

1.3 The value of the investments and returns obtained from them can change or fluctuate at any time.

1.4 The value of your investments and its returns may go down as well as up and the estimates are based on past performance and current market conditions, which cannot be regarded as an accurate indicator of future results. You may lose a part or your entire capital and may also experience delays in being paid.

1.5 Investing in such Companies can result in the dilution of equity holdings if the Company takes on further rounds of fund raising through the Website or otherwise.

1.6 Companies on the platform will include new businesses, new businesses have high mortality rate and as many new businesses fail, an investment with such Companies may involve high risks including risk of your capital.

1.7 You understand that Information on such Unlisted, Late Stage Unlisted and Startup Companies is limited and you will have less access to them as compared to Listed Companies.

1.8 If due to any unforeseen circumstances, FracAssets ceases to carry on its operations, then you may lose your money, incur costs or experience a delay in being paid.

1.9 It is solely your responsibility to understand and read the risks associated with investing and carefully consider your risk tolerance before investing in any of the Campaigns on the Website.

2. Company Specific Risk Warnings

Crowdfunding provides Entrepreneurs with several advantages, but there are also certain risks that are associated with fundraising. The following points will help you understand and navigate the potential risks of crowdfunding. This list is not exhaustive:

2.1 Similar to other business ventures, there is a risk that your business may not succeed. In case the Funding Target set out by you is not met, the entire money collected during your Campaign will be returned to the Investors.

2.2 Your intellectual property will be licensed to FracAssets and will be made public on the Website. Your business ideas including your Business Plan will be made available to Investors on the Website. This poses an inherent risk of someone duplicating your proposition.

2.3 Crowdfunding as a process takes up time and resources. There are several costs associated while dealing with each crowdfunding Campaign. This includes FracAssets administration fees and other charges.

2.4 The laws and regulations around crowdfunding are still evolving and are subject to change. Entrepreneurs must be aware of the relevant regional, national, and free zone laws, or you could unknowingly violate them.

2.5 Through crowdfunding you are dealing with a large base of Investors. This gives rise to different issues, expectations and demands from different Investors. FracAssets suggests that you understand the potential issues that could rise at later stages before engaging in equity crowdfunding.

3. Investor Specific Risk Warnings

Investments in Late-Stage Unlisted and Startup companies are risky investments. Having understood this:

3.1 Past and current performance of a Company is not a reliable indicator of future results.

3.2 You understand and acknowledge that the value of an Equity Investment and the returns on the investment can go down as well as up. You may lose a part or all of the amount that you invest, It carries a high level of risk.

3.3 Future forecasts and estimates are speculative in nature and depend on various factors. These cannot be regarded as a reliable indication of future performance.

3.4 The value or returns on the investments may be adversely affected by changes in exchange rates or taxation laws. The value or returns on the investments may be constrained due to charges levied and inflation over the period.

3.5 You understand that similar to other business ventures, there is a risk that the business of the Company you invest in, may not succeed. Considering the same, your capital can be at a high risk or you may entirely lose your capital.

3.6 You also understand that, in the event that the company you choose to invest ceases its operations, you may lose your money, incur costs or experience delays in being paid.

3.7 Investors are required to note that the use of credit or borrowed monies to invest on the Platform creates greater risk. For example, even if the value of Investment declines or becomes zero, the investor will still need to meet their repayment obligations with respect to the monies borrowed.

3.8 Investors should note that Investments in Late-Stage Unlisted, Startups and Unlisted shares have very limited exit options. We may not be able to transfer and you may or may not be able to sell your shares, when you wish to, or at all. In case the company goes bankrupt, your investment value may become zero.

3.9 Information provided on the Website is solely for informational purposes and does not constitute a personal recommendation. Investors must inform themselves about the investments they choose to make. They should also consider their risk taking capacity and where appropriate should consult a third-party independent tax, legal or financial advisor prior to making any investments.

3.10 You may face concentration risk when your portfolio is not sufficiently diversified and you have major exposure to only one or two asset classes. To reduce this, FracAssets strongly encourages you to diversify your investments into different asset classes.

3.11 Investing in such Companies can result in the dilution of equity holdings if the Company takes on further rounds of fund raising through the Website or otherwise.

3.12 The Investor should not interact with the Entrepreneur outside the FracAssets Platform before any investment has been concluded.

4. Limitation of Liability

4.1 FracAssets makes no assurance about the accuracy of financial statements and/or projections provided on the Website. The material displayed on this Website is provided without any guarantees, conditions or warranties as to its accuracy. To the extent permitted by law, FracAssets expressly exclude:

4.1.1 All conditions, warranties and other terms which might otherwise be implied by statute, common law, civil law or the law of equity.
4.1.2 Any liability for any direct, indirect or consequential loss or damage incurred by You in connection with the Website or in connection with the use, inability to use, or results or the use of this Website, any websites linked to it and any materials posted on it, including, without limitation any liability for loss of income or revenue; loss of business; loss of profits or contracts; loss of anticipated savings; loss of data; loss of goodwill; wasted management or office time; and for any other loss or damage of any kind, however arising and whether caused by tort (including negligence), breach of contract or otherwise, even if foreseeable.

4.2 FracAssets does not endorse any of the Companies raising funds on our platform, Clients should do their independent due diligence before investing in them, FracAssets its employees , founders, associates partners don’t take any responsibility for any losses incurred because of investments, There is no assurance of capital protection or any assurance of upside or guarantee returns it’s a risky equity investment and your capital can become zero, pls check with your advisor and invest after complete due diligence invest.

5. Complaints Process

5.1 In case you are dissatisfied with FracAssets or any of its products or services, you may file a complaint against the same. We will certainly ensure that your complaint is resolved in a fair and reasonable manner.

5.2 Once we receive your complaint, the Senior Executive Officer (SEO) will be immediately informed about the same. The SEO will send you a letter of acknowledgement of the complaint via email within 7 business days of the receipt of such complaint. We will try to resolve your complaint within a maximum of sixty days. During this period, you will be regularly updated on the status of your complaint. You will be provided with the contact details for the person in charge of handling your complaint.

5.3 Any referral to external parties inclusive of regulatory bodies may require transferring and disclosing personal data, as defined under the DIFC Data Protection Law. You have the right to object at any time on reasonable grounds to the processing of your personal data.

5.4 We will investigate the factual and lawful circumstances of the case and based on these investigations derive the measures to be taken by FracAssets. You will promptly be notified in writing of the result of the complaint, upon conclusion of the investigation.

5.5 If the complaint cannot be resolved within sixty days, the complainant should be provided with a progress report which includes details as to why the complaint has not been resolved and when the complainant can expect a resolution.

5.6 If you wish to make a complaint, please write your complaint to us at [email protected].