Investment Risk Policy for Sciving Capital Limited

Last updated on the 22nd of May 2024.

The document provides an overview of key risks associated with investing in businesses and ﬁnancial products. It emphasizes the importance of understanding these risks and seeking professional advice before making investment decisions. This document covers various risk factors that investors should consider when assessing their investment options. This is not ﬁnancial advice.

No communications from Sciving Capital Ltd, through this website or any other medium, should be construed as an investment recommendation, you should seek ﬁnancial advice from an IFA.

Investing in equity opportunities such as these, involves risks including loss of capital. Investments made through Sciving Capital Ltd are not covered by the Financial Services Compensation Scheme (FSCS).

To view the content, you must be either: (a) High Net Worth Individual or (b) Self-Certiﬁed Sophisticated Investor. If you do not meet these criteria, you must not take any further action. This website assumes you have a clear understanding of investments of this type and is provided to prospective investors to evaluate the investment being oﬀered. Potential for Complete Loss.

If an investment fails, it is likely that you may lose all, or part, of your initial investment and receive no outstanding or future interest payments. In such circumstances the company will not be able to pay you back your investment. Investing in businesses, especially startups, carries the risk of losing all invested capital due to business failure.

1. Reduction in Investment Value. (Dilution)
Issuance of additional shares by a company can decrease the value of existing shares, affecting ownership and returns.

2. Diversiﬁcation.
Concentrating all funds in one business or investment type is risky. Diversifying across various diﬀerentiated assets classes reduces dependence on one entity. Diversiﬁcation is an important strategy in potentially reducing risk.

3. Delayed Fund Recovery.
Even in successful businesses, it may take years to recover the investment, and premature sale of the investment is unlikely. Recovery is more probable through acquisitions or share listings.

4. Infrequent or lack of Dividends.
Startups rarely pay dividends, are typically early-stage and loss-making, so returns usually come from selling shares, not dividends.

5. Past and Future Performance.
Past performance is not indicative of future results, and forecasts are not reliable indicators.

6. Limited Protection.
The Financial Services Compensation Scheme (FSCS) and Financial Ombudsman Service (FOS) do not oﬀer protection for poor investment performance. They may not cover investment losses. Investments introduced via Sciving Capital Limited are not protected by the FSCS.

7. Market Risk.
All investments are subject to market risk, and the value of investments can ﬂuctuate due to market conditions, including economic trends, interest rates, and geopolitical events.

8. Illiquidity Risk and Lack of Exit options
Certain assets may be less liquid, making it challenging to sell them quickly at a desired price.

9. Credit Risk.
Some issuers of ﬁnancial products may default on their payments, particularly concerning ﬁxed- income investments.

10. Currency Risk.
Investments in foreign assets can be impacted by currency exchange rate ﬂuctuations.

11. Regulatory Risk.
Changes in government regulations or tax laws can aﬀect investment returns, including tax rates or investment regulations.

12. Management Risk.
Investment managers or fund managers may make poor decisions or underperform, aﬀecting the
performance of the investment.

13. Interest Rate Risk.
Changes in interest rates can adversely impact the value of ﬁxed-income investments.

14. Inflation Risk.
Inflation erodes the purchasing power of money over time and can impact the real return on
investments.

15. Geopolitical Risk.
Geopolitical events, such as conflicts or political instability, can have unpredictable impacts on
investment markets.

16. Environmental, Social, and Governance (ESG) Risks.
Consideration of ESG factors in investment decisions, as poor ESG practices may lead to ﬁnancial, legal, or reputational risks.

17. Taxation Considerations.
Potential tax implications of diﬀerent investment choices, including capital gains tax, income tax, and other tax liabilities.

18. Investment Time Horizon.
Aligning investments with ﬁnancial goals, risk tolerance, and time horizon.

19. Exit Strategy.
Information on how investors can exit or divest from their investments and potential implications.

20. Professional Advice.
You should consult with ﬁnancial professionals or advisors before making any investment decisions,
especially when uncertain about risks or investment options.

Last updated on the 22nd of May 2024.