Understand the risks

Investments involve certain risks. Mostly operational risk, the borrower's default risk, currency risk, and legal and political risk.

Operational risk

Operational risk is the risk of bankruptcy of Bondkick as a company.

The probability of operational risk is very small. The members of the management board and the supervisory board of Bondkick have led a number of companies and possess extensive experience in the financial management of enterprises.

The capital distribution platform is managed in such a way as to allow the revenue generated by Bondkick to cover the costs of maintenance and management of loan contracts during possible bankruptcy proceedings, or until another company takes over the management and maintenance of the assets.

In the extremely unlikely case of Bondkick going bankrupt, we would pay the funds held in the accounts of Bondkick to their rightful owners. The money held in the accounts of our customers is given to us to manage under an authorisation agreement, meaning that these funds are not recognised as assets of Bondkick.

Bondkick does not conclude transactions with funds held in the financial portal's settlement accounts without the customer's consent. After all the investors and borrowers have received their money, they will be issued comprehensive information on their accounts and transactions.

All contracts entered into through Bondkick remain valid regardless of the financial state of Bondkick. This means that borrowers will always have an obligation to repay their loans. New bank accounts will be assigned to Borrowers for loan repayments, and we will find a new cooperation partner to take over the management and maintenance of the outstanding loans.

Credit risk

Credit risk is related to factors affecting the borrower’s economic activities, such as changes in consumer preferences, departure of qualified management personnel, the company’s insolvency, etc.

Bondkick does not guarantee the performance or quality of investments.

There are several methods to minimise credit risk.Many of these are implemented by Bondkick, whereas the rest are the responsibility of investors.

Bondkick uses the financial portal to analyse the solvency of investment opportunities by verifying the data provided on the platform against information available through public databases and other additional documents. In addition to verification of the issued data, Bondkick also checks the person's identity and address. If the investment opportunity does not meet the credit rating required by Bondkick, or we find other problems, then the investment opportunity will be rejected from listing by Bondkick.

Currency risk

Based on the country of location of the investor, the distributor or the financing that is being sought, the currency used in the listings can be either fiat EUR or USD or any cryptocurrency that Bondkick accepts. If the investor’s country of residence does not use the currency of a listed investment opportunity, one must take into account the currency risk involved in the purchase or sale of such currency for making investments in the capital distribution platform of Bondkick.

The value of investments is dependent on the fluctuation of foreign exchange rates. Currency conversion may result in additional expenses when making investments.

Legal and political risk

Legal risk arises from legislation that may change which could lead to a decrease in the return on particular investments. The most significant risks are potential changes in tax laws and the amendment of investment restrictions.