Financial Risk

Risk Warning

To help you understand the risks involved when investing in our mini-bond, please read the following risk summary. It is important that you understand the nature of these risks before deciding to invest.

1. Loss of Investment

Investing in mini-bonds may involve significant risk of default. In the event of Chilango Bonds PLC being unable or unwilling to meet payments of interest and capital, it is likely that you may lose all, or part, of your initial investment and receive no outstanding or future interest payments.

If your investment fails, Chilango Bonds PLC will not pay you back your investment. You should only invest an amount that you are willing to lose and should build a diversified portfolio to spread risk.

Mini-bonds are not insured by a third party nor are they protected by any governmental authority such as the Financial Services Compensation Scheme. This means that if Chilango Bonds PLC becomes insolvent, investors could lose some or all of their money.

2. Illiquidity and non-transferable

Investment in unquoted securities such as these (i.e. investments neither listed nor traded on any stock market or exchange) are illiquid. In other words, you cannot trade them, so your money is effectively locked in until the maturity date.

3. Client Classification

Before being allowed to invest, you will need to be classified as an investor type. You will need to provide the relevant information to us, which you warrant to be truthful and accurate, in order that we can classify you. Please follow the steps when signing up to complete this process. If you no longer fall into at least one of the categories of investor available, you must give immediate written notice to Chilango Bond PLC and you must not access or try to access the service until you fall into one or more of these categories again.

4. Tax

You will be responsible for the payment of your own tax which may include capital gains and/or income tax. We do not provide tax advice and you should seek independent tax advice before investing if you are unsure of your position. It is still your responsibility to ensure that your tax return is correct and is filed by the deadline and any tax owing is paid on time. If you are unsure how this investment will affect your tax status you must seek professional advice before you invest.

5. Bonds are unsecured

If you purchase bonds through the platform, they will be unsecured debt of the investee company and will rank equally with any other unsecured debts of that company. The bonds will not be secured against any fixed asset or property, and if Chilango Bonds PLC were to become insolvent, there is a risk that (a) some or all of the nominal value of the bond would not be redeemed and (b) some or all of the interest payments due on the bond would not be paid.

6. Advice

Chilango Bonds PLC does not give investment advice or provide analysis or recommendations regarding investment opportunities. Chilango Bonds PLC takes no responsibility for this information or for any recommendations, opinions or predictions.

7. Past Performance

Past performance is not a reliable indicator of future results. You should not rely on any past performance as a guarantee of future investment performance.

8. Future performance

Any projections of future performance are based on the internal calculations and opinions of Chilango Bonds PLC and are subject to change at any time. Forecasts are not a reliable indicator of future results and should not be relied on.

9. Financial Services Compensation Scheme

Investing through Chilango Bonds PLC is not covered by the Financial Services Compensation Scheme.

10. Jurisdiction

The information and services provided on the Site are not provided to, and may not be used by, any person or entity in any jurisdiction where the provision or use thereof would be contrary to applicable laws, rules or regulations of any governmental authority or where Chilango Bond PLC is not authorised to provide such information or services. The products and services described in the Site are only available for UK residentials.

This list of risk factors does not necessarily outline all possible risks involved. Prospective investors should read all key documents and consult with their own advisers before deciding whether to invest. If you are unsure about any aspect of the information provided by the company, you should seek advice from an independent financial adviser.