All persons who register as an investor on LEOcrowdfunding Ltd ("LEOcrowdfunding") 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 LEOcrowdfunding 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. 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 LEOcrowdfunding – 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 LEOcrowdfunding 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 LEOcrowdfunding 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. 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 LEOcrowdfunding and balance your LEOcrowdfunding 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.
LEOcrowdfunding does not give investment advice or provide analysis or recommendations regarding investment opportunities. Investments can only be made by users of LEOcrowdfunding website on the basis of information provided. LEOcrowdfunding takes no responsibility for this information or for any recommendations, opinions or predictions. You should seek your own independent legal and financial advice.