These Risk Factors apply when you use any online service provided by online platform or mobile application (collectively, the "Site"), which is owned or administered by Fintopia Inc. ("we", "us" and "our").
Notwithstanding the diligence of the Fintopia in implementing the investment policy outlined, the online peer-to-peer lending investments are, by their nature, subject to typical market fluctuations, credit risk, exit risk, systemic risk, policy risk etc. in the operating markets, and, even if we maintain routine and risk management procedures, there is no guarantee of elimination of the possibility of losses for the Investors.
The materialization of any of the risks described below may generate losses to the Investor. In this case, Fintopia shall not be responsible, except in case of proven bad faith, gross negligence or willful misconduct verified through a conviction.
As an online peer-to-peer lending information intermediary, Fintopia represents that in no event shall any of the products or assurance plan be deemed to provide the Investors with credit enhancement service or as an undertaking or guarantee for fully repaying the principal and interests of loans, nor Fintopia provides guarantee to the Investors with its own capital.
Investors may suffer a certain degree of losses due to market or policy changes or the Borrower's actions. Investors should fully understand investment risks and exercise prudent investment and be noted that no principal and income is guaranteed.
The products and services provided by Fintopia are subject to the following risk factors, not exhaustively:
If the Borrower is in credit default, it may affect the investment income, and even cause losses to the principal under the investment plan invested by the Investor. Fintopia’s evaluation of the risk of the Investor’s rights is based on only the information disclosed by the Borrower and the public information disclosed on Fintopia’s cooperation platform. Fintopia has not conducted any independent and comprehensive due diligence on the Investor’s rights. If the Investor’s rights are defaulted in the course of the transaction, or the information disclosed by the counterparty or the cooperation platform of the Investor’s rights is inaccurate, false, or incomplete, it may result in financial losses and changes to the income on the fund invested by the Investor under the investment plan.
Market and Exit Risk
Affected by various market factors, macroeconomic policies and other factors, the market value of the Investor’s rights may fall, affecting the income under the investment plan. Fintopia will manage market risks by controlling the investment objects of the Investor’s rights under the investment plan to the extent authorized by the Investor. After the investment plan matures, the Investor’s rights held by the Investor may be transferred to other Investors on the Fintopia. Fintopia will not make any commitment to the time when the Investor rights transfer is completed and whether all of the Investor’s rights can be successfully transferred. If the application for Investor’s rights transfer is not completed successfully, Investor will face the risk that the fund will not be realized and other investment opportunities will be lost.
Fintopia has always followed and believes that it will continue to perform its obligations and duties as an online peer-to-peer lending information intermediary honestly, creditably, prudently and effectively. However, if pursuant to China’s financial regulatory laws and regulations and the provisions and requirements of the relevant regulatory authorities, Fintopia needs to obtain special qualifications or credentials to operate the services as an online peer-to-peer lending information intermediary, and Fintopia is unable to obtain such special qualifications or credentials due to the actual conditions and restrictions at that time, resulting in the failure of Fintopia to take the reasonable measures permitted by the relevant laws and regulations during the duration of the investment plan, then Fintopia shall have the right to terminate the investment plan by giving Investor notice in advance, settle the principal and income of Investor’s remaining investment as of such early termination date, and return the balance to Investor’s balance account after deducting the relevant fees and taxes pursuant to the Loan Agreement.
Information Transmission and Operation Risk
During the period of the investment plan, Investor shall always pay attention to the relevant information set forth and published on the Site. If Investor fails to timely inquire, or is unable to understand the product information in a timely manner because of communication failures, system failures, and other force majeure factors, the resulting responsibilities and risks shall be borne by Investor itself. At the same time, unpredictable or uncontrollable incidents such as system failures, equipment failures, communication failures, power outages, etc. may cause Investor to fail to make reasonable decisions in a timely manner and cause certain losses to Investor.
The relevant investment risks caused by force majeure factors such as natural disasters, financial market crisis or wars can also result in losses to Investor.
Fintopia may update its Risk Factors from time to time.
Updated by Fintopia Legal Team on May 20, 2018