Risk Statement

Risk Statement

It is important to remember that investments carry a degree of risk. When investing, your principal is at risk.

The following risk factors Is not an exhaustive list nor a comprehension explanation of the risk involved.

• Applicants for Funding using the Platform include start-ups, early stage, and growth stage businesses. Investment in these types of businesses carries a considerable level of risks.
• Crowdfunding platforms are vulnerable to attacks from hackers and cyber-criminals the same as any online business. However, FundT will implement a high level of security both on the back-end and the front-end in developing the platform to ensure users digital safety and personal data at given highest priority.
• Investors who invest through equity or peer-to-peer crowdfunding have an expectation of some return on investment in the future. However, return on equity or peer-to-peer crowdfunded ventures may take many years to materialize.
• The Applicant for Funding listed on the Platform may require further funding in the future. It is possible that the Applicant for Funding will issue more shares, which would lower the value of the shares of the Investor.
• The Investor may lose the entire investment, and must be in a position to bear this risk without undue hardship.
• Whilst reasonable care is taken to ensure reliability and accuracy of information on the Platform, neither the offering being made on the Platform nor the registration of the Platform with the Capital Market Authority of Oman, is to be taken as an indication of the merits of the offering.
• Any loss resulting from the Investors trading or investment through the Platform is not covered by any compensation fund of last resort .

Duty of Investor

FundT encourage the Investor to do the following to mitigate risks:

1. diversify their investments across multiple campaigns, to lower overall portfolio risk.
2. ask questions and seek assistance from our staff.
3. seek independent financial advice.
4. read all relevant information regarding the services on the platform and the business of the Applicant for Funding.
5. do own research before committing to any investment.

Risk Management

Security risk

As FundT business is largely online, ensuring the security of the system is key. Ethis will implement a high level of security both on the back-end and the front-end in developing the platform to ensure users’ digital safety and personal data at the highest priority. The below highlights our building blocks for system integrity and security:

• SSL certificate is incorporated in the system to ensure the user information and database are protected at all times
• MD5 encrypt and decrypt technology is used for user password and personal info protection
• The FundT server will be also automatically backed up daily to conserve the information in the database backup system. We also have a separate backup storage which forms our backup in the case of a compromise on the main server (see business continuity).

In terms of the front-end security of users, Investors and Applicants for Funding will have to log in to our platform with a username and password. To increase security, we will require users to create a password with at least 8 characters, including one capital letter, one small letter, and one number). Furthermore, all major transactions will have increased security through captchas.

Political Risk

FundT has a strict policy of being apolitical to ensure that we are inclusive, and also to prevent being involved in any political sensitivities or issues.

Economic slowdown

A slowdown in the economy is likely to increase the credit profile of most companies and enterprises inside and outside the Sultanate of Oman. This is likely to increase default risk. In a situation like this, FundT will become increasingly selective in our deal selection. Companies and enterprises looking to raise financing will be stress-tested to determine whether or not they are able to repay investors in a worse-case scenario.

Information or Materials

Investors may not be given all the financial, business, or other information of the Applicants for Funding which could be relevant for an investment decision. Further, in preparing and obtaining the information published on the Platform, whilst reasonable care is taken to ensure reliability and accuracy, FundT and its associates, directors, employees and partners do not provide any guarantee to its content and completeness, and does not accept any liability for losses which arise from relying on the documents published.