Last updated: November 5, 2025
Risk Warnings for ZimCrowd Platform
⚠️ CRITICAL WARNING: Lending money involves risk of loss. You could lose some or all of your investment. Only invest money you can afford to lose. Past performance is not indicative of future results.
1. Credit Risk
Credit Risk: There is a risk that borrowers may not repay their loans in full or on time. This could result in partial or total loss of your investment.
- Borrowers may default on their loan obligations
- Economic conditions may affect borrowers' ability to repay
- Changes in borrowers' personal circumstances may impact repayment
- Interest rates are voluntary and may not provide adequate compensation for risk
2. Liquidity Risk
Liquidity Risk: You may not be able to sell your loan investments quickly or at the price you want. The secondary market may not always have buyers for your loan portions.
- Loan investments are generally illiquid
- Secondary market trading is not guaranteed
- You may need to hold investments longer than expected
- Market conditions may affect trading prices
3. Interest Rate Risk
Interest Rate Risk: Changes in market interest rates may affect the value of your loan investments and potential returns.
- Rising market rates may reduce investment attractiveness
- Falling rates may lead to reinvestment at lower yields
- Voluntary interest rates may not keep pace with inflation
4. Platform Risk
Platform Risk: ZimCrowd's operations, technology, or regulatory compliance could be disrupted, affecting your ability to manage investments.
- Technical issues may prevent access to your account
- Platform changes may affect service availability
- Regulatory changes may impact platform operations
- ZimCrowd may cease operations
5. Regulatory and Legal Risk
Regulatory Risk: Changes in laws or regulations may affect peer-to-peer lending and your investments.
- Regulatory changes may affect platform operations
- Legal interpretations may change over time
- Tax treatment of investments may change
- Consumer protection laws may evolve
6. Currency Risk
Currency Risk: Investments denominated in foreign currencies carry exchange rate risk.
- Exchange rate fluctuations may affect returns
- Currency devaluation may reduce investment value
- International transfers may incur additional costs
7. Diversification Risk
Diversification: While diversification can help manage risk, it does not eliminate the possibility of loss. Concentrating investments in specific sectors or borrowers increases risk.
- Single borrower concentration increases risk
- Sector-specific investments may be more volatile
- Geographic concentration may amplify local risks
8. Tax Implications
Tax Risk: Tax treatment of peer-to-peer lending returns may change. You are responsible for understanding and complying with tax obligations.
- Interest income may be taxable
- Losses may not be fully deductible
- Tax laws may change
- You should seek professional tax advice
9. Technology and Security Risk
Technology Risk: Cyber attacks, data breaches, or system failures could compromise your investments and personal information.
- Hacking and cyber attacks are possible
- Data breaches may expose personal information
- System failures may prevent transactions
- Online platforms carry inherent technology risks
10. Lender Protection Limitations
Protection Limits: ZimCrowd's Lender Protection has limitations and does not guarantee full recovery of losses.
- Protection is subject to terms and conditions
- Maximum coverage limits apply
- Not all losses are covered
- Protection may be withdrawn or modified
11. No Guarantee of Returns
No Guarantees: Peer-to-peer lending is not a guaranteed investment. Returns are not guaranteed, and you may lose money.
- No capital protection guarantees
- No guaranteed returns
- Past performance does not predict future results
- Voluntary interest rates may be zero
12. Secondary Market Risks
Trading Risks: Buying and selling loan portions on the secondary market carries additional risks.
- Prices may fluctuate significantly
- No guaranteed liquidity
- Trading fees may apply
- Market timing affects returns
13. Important Disclaimers
Professional Advice: This is not financial advice. You should consult with qualified financial advisors before investing.
- Consider your risk tolerance carefully
- Only invest money you can afford to lose
- Diversify your investments
- Stay informed about platform developments
- Monitor your investments regularly
14. Acknowledgment
By using the ZimCrowd platform, you acknowledge that you have read, understood, and accept these risk warnings. You understand that peer-to-peer lending involves substantial risk and that you may lose some or all of your investment.
15. Contact Information
If you have questions about these risk warnings, please contact:
- Email: risk@zimcrowd.com
- Phone: +263 710 467 317
- Address: 123 Samora Machel Avenue, Harare, Zimbabwe
FINAL WARNING: Peer-to-peer lending is a high-risk investment. Only invest money you can afford to lose completely. If you are not comfortable with these risks, you should not invest through the ZimCrowd platform.
