Risk Warnings

The risks below are general risks associated with investing in unlisted securities and this is not
intended to be an exhaustive list of all risks. Specific risks for individual investments will be listed on
companies’ individual pages.

We recommend that you read the information on the website carefully and that you carry out your own
due diligence on the companies. You should only make investments in unlisted shares if you are able
to bear the loss of the whole of your investment and as part of a well-diversified portfolio.
Investments are not suitable for all persons and investors will have to satisfy qualification criteria
when signing up as a client of an authorised broker.

Early Stage Companies

Companies using CrowdX are at various stages of growth but all are early-stage companies and carry
a high risk of failure. Past performance is not guaranteed to continue, the value of your investments
may fluctuate and you may get back less than you invested. If you are unsure about the suitability of
any investment you should speak to a suitably qualified adviser.

Loss of Capital

Early-stage companies carry a high risk of failure, and you should be prepared to lose the whole of
your investment.

No Income

Although dividends can be paid on shares, early-stage companies usually are not in a position to pay
dividends to shareholders and you should not expect to receive an income from your shareholding.

No Prospectus

None of the offers available through the platform have a prospectus that has been approved by a
regulatory authority.

EIS

No guarantee of ongoing compliance with qualification criteria.
Some of the companies may be eligible for EIS relief but there is no guarantee that the company will
continue to meet the criteria to qualify for EIS relief. Tax treatments of the products depend on
individual circumstances and may be subject to future changes in law. If you are uncertain about the
tax treatment of a product you should seek independent tax advice. Neither CrowdX nor Prosper
Capital LLP offer any tax advice or any guarantee as to the suitability of a product for a particular tax
treatment.

No liquidity

Although CrowdX operates a bulletin board to allow shares to be traded, this is no guarantee that you
will be able to sell your shares when you want and at a price that you want. If you purchase shares
which are suitable for EIS relief you will need to hold them for at least 3 years to qualify for the relief.

Risk of dilution

Early-stage companies usually go through several rounds of financing, and it is likely that your
will be diluted by subsequent new issues of shares.