RISK DISCLOSURE

Important risk information for CycleFund platform participants

Effective Date: December 15, 2024 | Last Reviewed: December 15, 2024
GENERAL RISK FACTORS

Loss of Capital

Participating in savings circles involves risk of total or partial loss of contributed funds. Circle members may default on payments, become unavailable, or circumstances may prevent completion of the savings cycle. There is no guarantee of principal protection.

Counterparty Risk

Your participation depends on other members fulfilling their commitments. Member default, withdrawal, or non-payment directly affects your potential returns and may result in circle dissolution or restructuring.

Regulatory Risk

Changes in financial regulations, money transmission laws, or securities regulations in operating jurisdictions may affect platform operations, user access, or available services. Regulatory actions could result in service restrictions or suspension.

Technology Risk

Platform operations depend on technology infrastructure including servers, databases, payment processors, and third-party services. System failures, security breaches, or technical disruptions may affect access to funds or platform functionality.

SAVINGS CIRCLE RISKS

Early Withdrawal Risk

Members who withdraw early may lose contributed funds or face penalties. Circle restructuring may be required.

Payout Timing Risk

Payout positions are determined by algorithm or selection. Later positions carry higher risk of circle failure before payout.

KYC/AML Compliance Risk

Failure to complete identity verification may result in account suspension or inability to access funds.

Currency/Exchange Risk

Multi-currency circles expose participants to foreign exchange rate fluctuations and conversion costs.

Liquidity Risk

Funds committed to circles are not immediately accessible. Emergency withdrawal may not be available or may incur significant penalties.

Platform Risk

Business failure, acquisition, or cessation of operations could affect circle completion and fund recovery.

PAYMENT & SECURITY RISKS

Payment Processor Risk

Stripe, Paystack, or other processors may experience outages, security issues, or policy changes affecting transactions.

Data Security Risk

Despite security measures, data breaches or unauthorized access to personal or financial information remain possible.

Processing Delays

Banking holidays, technical issues, or compliance reviews may delay payments and affect circle schedules.

RISK MITIGATION MEASURES

Platform Safeguards

  • Mandatory KYC/AML verification for all participants
  • Escrow system for fund protection during circles
  • Multi-signature controls and audit trails
  • Regular security assessments and penetration testing
  • Compliance monitoring and regulatory oversight

User Recommendations

  • Only invest funds you can afford to lose completely
  • Diversify across multiple circles and timeframes
  • Maintain emergency funds outside the platform
  • Regularly review circle performance and member status
  • Understand tax implications in your jurisdiction
LEGAL DISCLAIMER

No Investment Advice: This platform does not provide investment, financial, or tax advice. All decisions are made at your own discretion and risk.

No Guarantees: CycleFund makes no guarantees regarding returns, principal protection, or successful completion of savings circles.

Regulatory Status: CycleFund is not currently registered as an investment advisor, broker-dealer, or bank. Regulatory compliance is pending operational launch.

Jurisdiction: This disclosure is governed by Delaware law and subject to applicable federal and state regulations in the United States.