This document constitutes our Risk Warnings & Disclaimer as part of our Terms of Service. By using our Services and Platform, you acknowledge and agree to our Terms & Conditions and statements. Your continued use of our Services and Platform after we revise these Terms means you accept any changes we make, please check back periodically on this page for updates. Version 3.0 - Published on May 22, 2026 and with Effective Date of June 26, 2026.
PART VI — RISK WARNINGS
23. General Risk Warning
23.1. Investing in alternative assets through Products issued by KAPITAL Issuer I involves significant risks, including but not limited to the risk of total loss of capital invested. The Products are designed for experienced Professional Investors who have the knowledge and financial capacity to assess and bear such risks. If you are not in a position to assess your expertise or bear the risks described below, you should refrain from investing.
23.2. KAPITAL structures and administers Products across a wide range of alternative asset classes, including venture capital, private equity, hedge funds and liquid alternatives, private debt, real estate, and multi-strategy or mixed approaches. KAPITAL does not structure Products involving: (a) crypto-assets or digital tokens; (b) gambling or gaming enterprises; (c) weapons, arms, or defence manufacturing; (d) tobacco production; or (e) any activity that is illegal under Applicable Laws or subject to international sanctions. Each asset class carries its own specific risk characteristics, which are further described below and in the applicable Issuance Documents.
24. Specific Risk Factors
Loss of Capital. An investment in a Product may result in the partial or total loss of the capital invested. This risk is particularly acute for venture capital and early-stage private equity investments, but applies to all alternative asset classes. Investors should not invest more capital than they can afford to lose.
Illiquidity. Investments in Products are highly illiquid. Notes will not be listed on a recognised exchange, and there may be no secondary market for the Notes. Investors should be prepared to hold their investment for the full term of the Product, which may be several years. Even for successful investments, liquidity events (such as an exit, IPO, or secondary sale) may not occur.
Credit and Counterparty Risk. The value of a Product depends on the creditworthiness and performance of the underlying asset(s) and the counterparties involved. Default or deterioration in the credit quality of an underlying borrower, issuer, or counterparty may result in significant losses.
Valuation Risk. The underlying assets of a Product may be difficult to value, particularly where they consist of unlisted securities, private equity interests, real estate, or other illiquid assets. Valuations are based on methodologies that may involve significant assumptions and judgement, and there can be no assurance that the stated NAV of a Product accurately reflects the realisable value of its assets.
Currency Risk. Products may be denominated in or exposed to currencies other than the Investor’s home currency. Fluctuations in exchange rates may adversely affect the value of the investment and any returns.
Dilution Risk. Investments may be subject to dilution where the underlying entity raises additional capital and issues new securities, or grants options or similar instruments to employees, advisors, or third parties. New securities may carry preferential rights that are disadvantageous to existing investors.
Rarity of Dividends and Distributions. Early-stage and growth-stage companies typically reinvest profits rather than distributing them to investors. Investors in venture capital and private equity Products should not expect regular income. Returns may only be realised upon an exit event.
Leverage Risk. Certain Products or their underlying assets may employ leverage, which amplifies both potential gains and potential losses. Leveraged investments carry a higher risk of loss.
Regulatory and Legal Risk. Changes in laws, regulations, tax treatment, or government policy in any relevant jurisdiction may adversely affect the value of an investment, the ability to realise returns, or the overall viability of a Product.
Concentration Risk. Certain Products may be concentrated in a single asset, sector, or geography, which increases the risk of loss compared to a diversified portfolio.
Conflict of Interest Risk. The KAPITAL Group, its Agents, and their respective affiliates may have interests that conflict with those of Investors. Conflicts of interest are managed in accordance with the KAPITAL Group’s internal policies and the applicable Transaction Documentation, but cannot be entirely eliminated. Certain Agents or affiliates may receive compensation in connection with Products and may perform multiple roles, subject to applicable disclosure in Transaction Documentation.
Past Performance. Past performance is not a reliable indicator of future results. Investors should not assume that an investment will continue to perform well in the future simply because it has done so in the past.
Forecasts. Any forecasts, projections, or forward-looking statements provided in connection with a Product are estimates only. Actual results may differ materially from those projected. No reliance should be placed on any forward-looking statement, and no member of the KAPITAL Group accepts responsibility for the accuracy of such statements.
Importance of Diversification. Investing in alternative assets should be done as part of a diversified portfolio strategy. Investors should allocate only a portion of their overall investment portfolio to illiquid alternative assets.
