Investing through the crowdfunding platform
www.rontgen.lt (the "
Platform") operated by UAB Trečia diena (the "
Company"), as well as investing in other financial instruments, involves risk-taking
The Platform operator shall take measures to mitigate the risks associated with the investment, shall establish criteria for the selection of projects to be published on the Platform, and shall endeavour to ensure the fulfilment of the project owner's obligations by means of pledges and/or other means of collateral provided.
However, the risks associated with the investment remain and may result in the investor losing some or all of the amount invested through the Platform and/or the returns generated on the Platform. Please note that investments made through the Platform are not covered by the insurance protection provided for in the Law on Deposits and Liabilities to Investors of the Republic of Lithuania.
The following are the main risks associated with investing on the Platform, which you should properly assess.
Risk of inadequate performance of obligations undertaken by the project owner and/or persons providing security
Although the Company assesses the credibility of project owners (and collateral providers) before posting a particular project on the Platform, this does not automatically guarantee that the project owner will in all cases properly and timely execute the crowdfunding transaction. There may be cases where, for certain reasons (e.g. additional unforeseen works require an extension of the project's deadline; an increase in the amount of costs necessary for the implementation of the project; inadequate cash flow planning; unforeseen circumstances during the course of the construction works; inadequate or inefficient organisation of the company's activities, etc.), the project owner will not meet its financial obligations to the financiers in whole or in part.
The Company shall at all times require the project owner to provide additional security for its obligations to the financiers. This reduces, but by no means eliminates, the risk of inadequate performance of the project owner's obligations. This may result in losses to the financiers and/or failure to obtain the desired return.
Risks related to the impairment of mortgaged real estate
Typically, the financiers' investment in a project is secured by a mortgage on real estate. However, there may be cases where the market value of the pledged real estate decreases during the course of the project or in order to recover it (e.g. due to changes in the tax situation; changes in the economic situation in the country or in the real estate market specifically; an increase in the supply of real estate; changes in other economic indicators, etc). A decrease in the market value of the mortgaged real estate may lead to losses for the financiers and/or a failure to obtain the desired return.
Moreover, mortgaged real estate can be damaged or destroyed (e.g. due to natural or man-made disasters, or intentional or negligent human activity ). In the latter case, the Company will normally require the mortgaged real estate to be insured (which will be disclosed with each project) in favour of the Company, which represents the interests of the financiers. However, in individual cases, the insurers may decide not to pay the insurance claim, or the insurance claim may not be sufficient to cover the project owner's indebtedness in full.
Risks associated with the recovery of mortgaged real estate
Failure of the project owner to properly meet its financial obligations may result in the foreclosure of real estate pledged in favour of the financiers. The recovery process may lead to a liquidity problem (the property is more difficult to sell than anticipated), which may lead to both a longer recovery process and a lower recovery amount (which may not be sufficient to cover all of the project owner's debts).
What you should pay additional attention to
Before you start investing, you need to make a proper assessment of your investment experience, knowledge, financial situation and the risks associated with investing. If you feel that you do not understand the potential risks associated with a crowdfunding transaction, consider seeking professional advice or do not enter into such a transaction. We would also recommend that you seek professional advice on any tax issues that may be relevant to you in relation to the financing of projects published on the Platform.
The Company is not responsible for the accuracy of the information provided by the Project Owner. The description of the project, the information relating to the project estimate and the expected revenues are indicative only and are subject to change due to various market conditions. Each crowdfunding transaction may have risks that are unique to it. We therefore suggest that the financier assesses not only the description of the general risks, but also other circumstances that may affect the specific crowdfunding transaction being concluded.
The Platform is only a technical tool to help crowdfunding parties to conclude crowdfunding transactions. The Company shall not be liable to the funders for any loss of amounts invested and/or any loss of expected return. Please also note that the statistical information published on the Platform regarding past crowdfunding transactions is not a reliable indicator for predicting future investment returns. You should not rely on any past performance as a guarantee of future investment performance
