Legal · Risk disclosure
Risk disclosure
Capital and revenue outcomes are uncertain.
SynFi structures partnership co-financing for qualified project owners and capital partners. Participation involves significant risk, including loss of committed capital. This page summarizes material risks — it does not replace deal-specific legal documents, suitability review, or independent counsel.
Scope
Who this applies to — and what it is not
This disclosure is for users evaluating or participating in SynFi deal workspaces — typically invitation-scoped capital partners and project owners who completed identity verification (KYC).
- Not investment advice. SynFi does not recommend deals, price risk, or assess suitability on your behalf.
- Not a deposit or savings product. Committed capital is at risk and is not protected like bank deposits or insured schemes.
- Deal-specific terms prevail. Each workspace has its own wrapper, waterfall, and milestone plan — read that package before you commit.
Capital risk
You may lose part or all of committed capital
i
No principal guarantee
Return of body in the waterfall depends on project performance and contractual order — not on platform marketing or projections.
ii
Not interest income
Partners participate in operating revenue share, not fixed coupons. Shortfalls, delays, or project failure can reduce or eliminate payouts.
iii
Illiquid participation
There is no guaranteed secondary market or early exit. You may be unable to withdraw committed funds until milestone and waterfall conditions are met.
iv
Concentration
Single-deal or correlated exposure can amplify loss. Diversification and position sizing are your responsibility.
Project & revenue risk
Operating revenue may differ from forecasts
Profit share and partner distributions flow from actual operating revenue recorded on-platform — not from guaranteed yields. Market conditions, execution risk, cost overruns, regulatory change, or fraud by counterparties can reduce or eliminate inflows.
Projections in marketing materials or deal summaries are illustrative. SynFi records outcomes but does not warrant that any project will reach its revenue or milestone targets.
Milestone & escrow risk
Funding and releases depend on verified deliverables
- Activation risk. If a capital call fails to reach its target, the deal may not activate and committed funds may return pro rata — timing and fees may still apply.
- Release disputes. Milestone verification, partner votes, or disputes can delay escrow releases beyond expected schedules.
- Deliverable failure. If milestones are not met, funds may remain in escrow, return to partners, or follow dispute resolution per the legal wrapper — outcomes vary by deal.
- EvoPay rails. Payment and escrow movement uses EvoPay infrastructure under separate operator obligations; SynFi deal logic does not eliminate payment-system or banking-partner risk.
Vote outcomes and verification evidence are recorded for audit — but recording does not guarantee favorable economic results. Review milestone definitions, release thresholds, and dispute mechanics in your deal package before funding.
Legal & wrapper risk
Structure, jurisdiction, and enforceability vary by deal
The Legal Wrapper Engine selects SPV, partnership, or profit-participation structures based on deal parameters and applicable law. Classification as securities, partnership, or other instrument may differ by jurisdiction and may change with regulation.
Enforcement of rights, recovery in insolvency, and cross-border recognition depend on the wrapper and local law — not on platform UI copy. Obtain independent legal and tax advice for your situation.
Counterparty & platform risk
Project owners, operators, and technology can fail
- Project owner risk. Default, misrepresentation, or poor execution by the project team can impair returns regardless of platform controls.
- Operator risk. SynFi, EvoPay LLP, and group operators (including ARCHINVESTMENT S.R.L.) are separate entities with distinct obligations — see platform disclosures.
- Conflicts of interest. Successful deals may align incentives between project owners, partners, and the platform; evaluate conflicts in transaction documentation.
- Operational & cyber risk. Outages, integration failures, or security incidents may delay actions, reporting, or access — maintain offline records of critical deal terms.
Tax & regulatory risk
Withholding, classification, and supervision may change
Where configured, SynFi may act as withholding agent at source. Net amounts, forms, and export formats may not meet every jurisdiction's filing requirements without your own advisors.
Regulatory treatment of partnership co-financing, revenue participation, or platform access can evolve. Licensing, sanctions, AML/KYC outcomes, or regional restrictions may limit who can participate or move funds.
Questions
Evaluate risk before you commit capital
Platform questions: synfi@virtuoz.io. For deal risk, read your workspace legal package and consult independent advisors. Only commit capital you can afford to lose.