Risk Disclosure

This Risk Disclosure is provided by SecondStock, operated by LooX Commerce Europa SL, to inform you of the material risks associated with investing in private, growing companies through our platform. SecondStock is a connection point between private companies and investors and is not associated with, registered in, or supervised by any investment system or financial regulator worldwide. You should read this disclosure carefully before making any investment.

1. Risk of Total Loss

Investing in private, early-stage, and growing companies involves a high degree of risk. You may lose some or all of the capital you invest. There is no guarantee that any company listed on the platform will succeed, generate a return, or ever reach a liquidity event such as an acquisition or public offering.

2. Illiquidity Risk

Private shares are highly illiquid. You may be unable to sell your shares for an extended period, or at all. There is no guaranteed secondary market on the platform, and the price at which you can sell may be significantly lower than the price you paid.

3. Valuation Risk

Valuations of private companies are determined by the listing company and may not reflect an objective market price. Private company valuations can be subjective, may change rapidly, and may not correspond to the price at which shares could actually be sold.

4. Information Asymmetry

Information about private companies is often limited and is provided by the companies themselves. You may have less information than the company's founders or insiders, and you may not be able to verify all of the information provided. SecondStock does not independently audit company-provided data.

5. No Regulatory Protection

Because SecondStock is not part of any regulated investment system, transactions on the platform do not benefit from the protections available on regulated markets, such as investor compensation funds, mandatory disclosure regimes, or regulatory recourse. You have no right to compensation from any regulatory authority in the event of a loss.

6. Dilution Risk

Private companies may issue additional shares in future funding rounds, which could dilute the value and voting power of your existing shares without your consent.

7. Dividend Risk

Dividends, if offered by a company, are set at the company's discretion and are not guaranteed. A company may reduce, suspend, or cancel dividend payments at any time, and SecondStock is not responsible for a company's ability or decision to pay dividends.

8. AI Auto-Invest Risk

Our AI Auto-Invest product uses automated algorithms on capital you deposit separately. Algorithmic trading carries its own risks, including software errors, market volatility, and model limitations. Returns are not guaranteed and may be negative. You can lose some or all of your AI capital.

9. No Responsibility for Losses

To the maximum extent permitted by applicable law, SecondStock and LooX Commerce Europa SL are not responsible for any monetary loss or other damages arising from your use of the platform or from any investment decision you make. You accept full responsibility for your investment decisions and their outcomes.

10. Acknowledgement

By using SecondStock and making any investment, you confirm that you have read and understood this Risk Disclosure, that you are aware of the risks described above, and that you are investing capital you can afford to lose. You should consult an independent, qualified financial adviser if you are unsure whether investing in private companies is suitable for you.

For questions about this disclosure, contact our support team through the in-app ticket system.