Investing in unlisted securities, such as bonds or equity-based investments, can be very financially rewarding, but each investment involves risks as well as rewards.
Each investment offer made available to you via your Rockfire Capital investment account will contain specific risk warnings for you to consider in making your investment decision. It’s very important that you fully understand and accept the risks involved with any investment and we strongly suggest that if you are unsure about any investment and its risks, you consult with a suitable professional adviser before making an investment.
If you choose to invest via the Rockfire Capital investment platform, you need to be aware of and accept the following general risks:
1. Loss of capital
Unless stated otherwise, most investment offers made available through the Rockfire Capital investment platform will not guarantee your capital. Even though the majority of investment offers will be asset backed to provide an element of downside protection of capital, there is a risk that such assets, once realised, would not produce the full return of your capital, and you could lose all of your invested capital. You should not invest more money than you can afford to lose without altering your standard of living.
Most investments you make through the platform will be highly illiquid. It is very unlikely that there will be a secondary market for the shares/debt of the investee company. This means that you are unlikely to be able to sell your shares or debt until/unless the investee company provides a refinancing/sale or other form of exit, such as it floats on a securities exchange, or is bought by another company. Even for a successful business, a flotation or purchase is unlikely to occur for a number of years from the time you make your investment.