Credit Default Risk of a Borrower LIVOSYSTEMS: This is the risk that a borrower LIVOSYSTEMS SIA may fail to make scheduled payments on a project in which you have invested.
On the LIVOSYSTEMS platform, all loans come with a Early exit option from LIVOSYSTEMS SIA, which mitigates this risk. If a investor wants to exit from project investment LIVOSYSTEMS will repurchase the loan and pay you the outstanding principal along with any accrued interest from the LIVOSYSTEMS SIA revenue or selling company assets to pay the funds back.
In addition to the Early exit option, all loans are secured by underlying collateral, providing an extra layer of protection.
LIVOSYSTEMS Company Risk: This refers to the risk that LIVOSYSTEMS experience business difficulties or cease operations while you still hold investments in platform. In such a case, the Early exit option could be impacted. LIVOSYSTEMS is committed to helping you manage and minimize this risk.
In the unlikely event that LIVOSYSREMS ceases operations, we have implemented measures to ensure that investors continue receiving payments on the projects investors have invested in through the LIVOSYSTEMS platform by selling assets what does not impact drastically a business operations.
Market Risk: As with any market, the renewable energy market may experience fluctuations over time. Interest rates can rise or fall due to macroeconomic factors, such as economic downturns, financial crises, exchange rate changes, hyperinflation, or geopolitical events.
Regulatory & Compliance Risk: This is the risk that changes in legislation could impact the business model of the LIVOSYSTEMS.
Reinvestment Risk: This is the risk of experiencing a loss by reinvesting funds at a lower interest rate, or by having uninvested funds in your account.