Foundect

Risk Disclosure

Last Updated: 20 December, 2025

This Risk Disclosure document explains the risks associated with using the Foundect platform and participating in investment opportunities listed on Foundect.

By accessing, registering, or investing through Foundect, you acknowledge that you have read, understood, and accepted the risks described below.

1. General Investment Risk

All investments involve risk.

By using Foundect, you understand and accept that:

  • You may lose part or all of your invested capital
  • Returns are NOT guaranteed
  • Past performance does NOT indicate future results
  • Profit distributions depend on business performance

Foundect does not provide investment advice or guarantees of any kind.

2. Business & Operational Risk

Businesses raising funds on Foundect may face risks including, but not limited to:

  • Operational failure
  • Management inefficiencies
  • Market competition
  • Supply chain disruptions
  • Cash flow shortages
  • Regulatory changes

Such risks may result in delayed, reduced, or no profit distribution.

3. Shari'ah Structure Risk

Foundect facilitates Shari'ah-aligned investment structures such as:

  • Musharakah
  • Mudarabah
  • Murabaha

However:

  • Different structures carry different risk profiles
  • Profit-sharing arrangements may vary
  • Some structures distribute profits only at the end of the term
  • Loss-sharing rules differ by contract

Foundect does not guarantee Shari'ah compliance outcomes.

4. No Fixed Returns

Foundect does NOT offer:

  • Fixed interest
  • Guaranteed profit rates
  • Capital protection

Any projected returns displayed on the Platform are estimates only and may not materialize.

5. Liquidity Risk

Investments made through Foundect may be illiquid.

This means:

  • You may not be able to withdraw funds before campaign completion
  • Early exit options may not exist
  • Transfers of investment positions are not guaranteed

Users should only invest funds they can afford to lock in for the full term.

6. Payment & Settlement Risk

Depending on campaign structure:

  • Funds may be transferred directly to businesses
  • Foundect will not hold or control funds
  • Incorrect payment confirmation may delay participation

Foundect is not responsible for losses arising from incorrect transfers or confirmations.

7. Platform & Technology Risk

While Foundect strives to maintain a secure and reliable platform:

  • Technical failures may occur
  • Downtime or delays are possible
  • Data transmission risks exist

Foundect is not liable for losses caused by technical interruptions.

8. Regulatory & Legal Risk

Laws and regulations may change.

Such changes may:

  • Affect campaign operations
  • Impact profit distributions
  • Restrict platform functionality

Foundect does not guarantee continued regulatory acceptance of all activities.

9. Information Accuracy Risk

Campaign information is provided by businesses.

Foundect:

  • Does not verify all projections or claims
  • Relies on information submitted by businesses

Investors must conduct their own due diligence.

10. No Fiduciary Duty

Foundect:

  • Does not act as a fiduciary
  • Does not manage investments on your behalf
  • Does not represent investors or businesses

All investment decisions are made solely by users.

11. Force Majeure

Events beyond reasonable control may impact outcomes, including:

  • Natural disasters
  • Political instability
  • Economic crises
  • Pandemics
  • Acts of government

Foundect shall not be held responsible for losses arising from such events.

12. User Responsibility

By using Foundect, you confirm that:

  • You understand the risks involved
  • You are financially capable of bearing losses
  • You have not relied solely on Foundect for decision-making

Users are encouraged to seek independent professional advice if necessary.

13. Limitation of Liability

To the maximum extent permitted by law:

  • Foundect shall not be liable for investment losses
  • Foundect shall not be liable for indirect or consequential damages

Use of the Platform is at your own risk.

14. Acceptance of Risk

By continuing to use Foundect, you explicitly acknowledge and accept all risks described in this document.

15. Contact Information

For questions related to risk disclosure:

Email: support@foundect.com

(Support page)

Final Note

Foundect is a facilitative platform, not a guarantor of returns or outcomes. Responsible investing requires understanding and accepting risk.

END OF RISK DISCLOSURE