Your personal decision to invest

A decision to invest is a personal decision by you and no responsibility for the consequences of that decision is accepted by Ethex Investment Club ("Ethex") or by any of its directors, agents, employees or other members. To invest through Ethex you need to understand the following important risks:

Losing all of your investment

Investment, whether in new or existing businesses, carries risks as well as the possibility of rewards. Accordingly, each investor should consider very carefully whether such investments are suitable in the light of your own personal circumstances and commitments and the financial resources available to each Investor. Ethex does not promise any return on investment nor that the value of any investment will be maintained. Engaging in any investment activity may expose you to a significant risk of losing all of your investment. Companies which are listed on the Ethex platform will provide information such as their business plan and financial forecasts. Please be warned that these documents are not guarantees that the relevant company can achieve what it is hoping to do. Equally the information provided may state certain facts and statements, and again please be warned that Ethex is not responsible for checking the accuracy of these facts and statements (which may not always prove to be true or complete).

You may not receive your interest payments if a company underperforms and if an organisation fails then neither the company – nor Ethex – will pay back your investment.

No established market – lack of liquidity

As an investor, you should be aware that no established market exists for the trading of shares in or bonds issued by private companies (which the companies that are listed on the Ethex platform are), and such shares or bonds are not easily realisable. It must be appreciated that there could be difficulty in selling such investments at a reasonable price and, in some circumstances, it may be difficult to sell them at any price.

The need for diversification

Diversification by spreading your money across multiple investments will reduce risk. Investors should only invest a proportion of their available investment funds via the Ethex platform due to the high risks involved.

Tax reliefs and savings may not materialise

Ethex does not guarantee that Enterprise Investment Scheme ("EIS") tax relief, SEED EIS tax relief or any other type of tax relief shall apply in respect of any investments made by you as an investor in companies via the Ethex platform. Tax-free status for IFISA is individual and subject to changes in legislation. Ethex recommends that you take your own tax advice on any investments which you make via the Ethex platform. Ethex does not make personal recommendations and does not promise that a particular investment will be suitable for the individual circumstances of an investor. Please note that just because a company has obtained an advance clearance from HMRC to confirm that it is for example an EIS qualifying company, it must be noted that the company can subsequently lose this status if it does not spend the investment in a prescribed way or it changes its business or share structure in a way which is contrary to the relevant tax rules. Furthermore, if the investee company goes to a successful exit event within three years (which you may have no control over) then the benefits of EIS tax relief will not apply. If the investee company is required by a majority of its investors to enter into a shareholders’ agreement (using the form prescribed by Ethex) then there are standard provisions to help ensure that any tax relief is maintained but it should be noted that this cannot be guaranteed as a complete safeguard in itself.