Risks of the Note Trading Platform
To understand the risks of the Note Trading Platform, you should first understand the risks of investing in Notes. This includes the risk that you may lose all or most of the principal invested. Before purchasing any Notes, you should carefully read the prospectus, including the “Risk Factors,” which provides detailed information about the risks of investing in Notes.
Buying or selling Notes on the Note Trading Platform carries risks that are in addition to those described in the prospectus: there is limited information available about Notes listed for sale on the Note Trading Platform and, in addition, the prices for such Notes are set by the seller, not by Lending Club or by Folio Investing. As a result, the Asking Price may be far above or far below the total value of the outstanding principal and accrued interest. The Asking Price of a Note can significantly impact the income the buyer could expect to receive from the Note and the past performance of any Note is not a guarantee of any future results. Notes on the Note Trading Platform are only suitable for sophisticated investors. You should consult your financial advisor to ensure that any purchase of Notes reflects your investment strategy and is appropriate for your personal financial situation.