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 financial portal is managed in such a way as to allow the revenue generated during the payback periods of loans issued by Bondkick AS 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 outstanding loans.

In the extremely unlikely case of Bondkick AS 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 AS.

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

All contracts entered into through Bondkick AS remain valid regardless of the financial state of Bondkick AS. 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 assign a new cooperation partner to take over the management and maintenance of 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 AS does not guarantee the performance or quality of investments.

There are several methods to minimise credit risk.

Many of these are implemented by Bondkick AS, whereas the rest are the responsibility of investors.

Bondkick AS uses the financial portal to analyse the solvency of loan applicants by verifying the data provided in loan applications against information available through Krediidiinfo, public databases, and other additional documents. In addition to verification of the issued data, Bondkick AS also checks the person's identity and address. If the loan applicant does not meet the credit rating required by the Bondkick financial portal, or we find other problems, then the loan application will not be published by Bondkick AS.

Currency risk

Based on the country of location of the investor or the borrower, the currency used in loan agreements will be either the euro or the British pound. If the investor's country of residence does not use the euro or the British pound, one must take into account the currency risk involved in the purchase or sale of euros or British pounds for making investments in the financial portal.

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.