Important Investment Risk Warnings

Investor and risk information

The protection of consumers and investors is a priority for Lemox.

Lemox wants to ensure that all users of the Lemox platform www.lemox.net ("Lemox platform") always have all important information available when making a crowdfunding decision in order to be able to make an informed and well-founded decision. Lemox has therefore listed here the consequences of an investment on the platform and the risks involved.

1. limited review by Lemox

a) Information from issuers

As the operator of the internet brokerage platform, Lemox only carries out a check according to formal criteria before a project is placed on the platform. Lemox does not check whether the individual information provided by the issuer to Lemox is correct in terms of content. Furthermore, the project profile and the project description on the Lemox platform do not claim to contain all the information required for the assessment of the investment offered. Investors should obtain information from independent sources and seek professional advice if they are unsure whether they should enter into this loan agreement.

b) No investment advice

Furthermore, Lemox does not check whether the respective investment makes economic sense for the specific user and does not recommend any investments. The investor makes the assessment and the decision in favour of an investment independently and on his own responsibility in every case. Lemox does not provide any investment advice, but only acts as an investment broker. Investors should use the opportunity to ask the issuer questions via the platform, obtain information from independent sources and seek expert advice if they are unsure whether they should invest.

2. risks of subordination and qualified subordination

The investments offered on the Lemox platform are loans with so-called qualified subordination and pre-insolvency enforcement blocking.

The investments offered on the Lemox platform are loans with so-called qualified subordination.

By granting the loan, the lender receives contractual claims to repayment of the loan including accrued interest (‘subordination claims’). However, the lender cannot assert these subordinated claims against the issuer if this would result in the issuer becoming insolvent. Furthermore, in the event of liquidation proceedings or insolvency of the issuer, the subordinated claims are subordinated to all current and future claims of all non-subordinated creditors (such as banks and other investors) of the issuer. Only after the claims of all other creditors of the issuer (with the exception of other subordinated creditors) have been fully and finally satisfied are the subordinated claims taken into account.

As a consequence, the investor bears an entrepreneurial risk of loss that goes beyond the risk of a regular lender, without being granted the corresponding information and participation rights that would enable him to influence the realisation of this risk, in particular to terminate loss-making business activities before the invested capital is used up.

The lender does not itself become a shareholder of the issuer and does not acquire any shareholder rights.

3. risk of total loss and maximum risk

The lender bears the risk of unfavourable business development on the part of the borrower. There is always a risk that the property project will not develop as originally planned. The planned property project could become more complex than expected. Business processes could involve more effort and costs than expected. Planning errors could come to light or the issuer's contractual partners could provide inadequate services. Necessary authorisations may not be granted. There may be unknown environmental risks or contaminated sites. There could be delays in the planned course of the project and/or problems in realising sales proceeds in the planned amount or at the planned time. Insurance cover could prove to be inadequate. Legal requirements could change and this could necessitate changes or additional measures in connection with the project, which could lead to additional costs and/or delays. These and/or other risks could have a negative impact on the asset, financial and earnings situation of the issuer. As a result, the issuer may not have the necessary funds available in the future to fulfil the interest claims and repay the loan capital invested. Economic success depends on a wide range of influencing factors, in particular the development of the market for property projects. Legal and tax conditions can also change and have an impact on the issuer.

Due to the risk structure, the granting of loans with qualified subordination arranged via the Lemox platform can only be carried out as one component of a diversified investment portfolio in order to achieve better risk diversification.

Against this backdrop, there is a risk that the issuer will not have the necessary funds available in the future to fulfil the interest receivable at maturity and repay the subordinated loan amount

This results in the risk of a total loss of the invested capital.

Individually, the subordinated lender may suffer additional financial disadvantages (e.g. from any loan financing of the investment or from costs for back tax payments).

The maximum risk for the subordinated lender is over-indebtedness, which in the worst case can lead to the personal insolvency of the subordinated lender.

There is no statutory deposit protection. The investment is therefore only suitable for investors who could accept a loss. The loan is not suitable for retirement provision. However, there is no risk of an obligation to make additional contributions or any other liability to the borrower that exceeds the amount of capital invested.

4. risks due to the minimum contract term (capital commitment)

All investments brokered via the Lemox platform in the form of loans with qualified subordination contain a contractually regulated minimum term. Premature cancellation by the lender is generally excluded. During the term of the loan, the investor can therefore neither access the loan amount nor reclaim it. Furthermore, there is no secondary market for the loan agreements concluded on the Lemox platform, meaning that the investor cannot transfer the loan agreement to a third party. The invested capital is therefore tied up until the end of the contract term.