Risk Disclosure

1. General Investment Risks

1.1 Market Risk

The value of investments can fluctuate due to changes in market conditions, economic factors, or investor sentiment. Market downturns can result in significant losses.

1.2 Liquidity Risk

Certain investments may not be easily convertible to cash. Lock-up periods may apply, restricting your ability to withdraw funds when needed. Early withdrawal may result in penalties or reduced returns.

1.3 Credit Risk

There is a risk that borrowers, issuers, or counterparties may default on their obligations, resulting in partial or total loss of invested capital.

1.4 Currency Risk

Investments denominated in currencies other than your base currency are subject to exchange rate fluctuations, which can positively or negatively affect returns.

2. Real Estate Investment Risks

• Property Value Fluctuation: Real estate values can decrease due to market conditions, oversupply, economic downturns, or changes in demand
• Rental Income Risk: Rental income may be affected by vacancy rates, tenant defaults, or economic conditions affecting rental demand
• Maintenance and Operating Costs: Unexpected repairs, maintenance, or increases in operating expenses can reduce profitability
• Regulatory Changes: Changes in property laws, zoning regulations, or tax policies can negatively impact returns
• Development Risk: New construction projects face completion delays, cost overruns, or failure to meet quality standards
• Geographic Concentration: Investments concentrated in specific locations are exposed to local market conditions and events

3. Sukuk Investment Risks

• Credit/Default Risk: The issuer may fail to make timely payments of profit or principal
• Shariah Compliance Risk: Concerns may arise about the ongoing Shariah compliance of the sukuk structure
• Interest Rate Risk: Changes in benchmark rates can affect sukuk values and returns
• Asset Performance Risk: The underlying assets backing the sukuk may underperform or lose value
• Restructuring Risk: In case of issuer financial difficulty, sukuk holders may face restructuring or delayed payments
• Limited Market: The secondary market for sukuk may be less liquid than conventional bonds

4. Startup Investment Risks

• Business Failure Risk: Startups have a high failure rate. You may lose your entire investment
• Illiquidity: Startup investments are typically illiquid with no established secondary market. Your capital may be tied up for years
• Dilution Risk: Additional funding rounds may dilute your ownership percentage
• Valuation Risk: Early-stage companies are difficult to value, and valuations may be highly speculative
• Management Risk: Success depends heavily on the management team's ability to execute the business plan
• Competition: Startups face intense competition and may be unable to maintain competitive advantage
• Technology Risk: Technology-based startups face risks of technological obsolescence or failure
• Exit Risk: There is no guarantee of a successful exit through acquisition or IPO

5. Regulatory and Legal Risks

Changes in laws, regulations, or tax treatment may adversely affect your investments. Cross-border investments may be subject to foreign laws and regulations that differ from UAE regulations.

6. Operational Risks

• Technology failures or cyber security breaches
• Errors in processing transactions or maintaining records
• Fraud or misconduct by third parties
• Business continuity disruptions

7. Concentration Risk

Concentrating investments in a single asset class, sector, or geographic region increases exposure to specific risks affecting that concentration.

8. No Guarantee of Returns

Projected or estimated returns are not guaranteed. Actual returns may be significantly lower than projections or may result in losses. Historical performance is not indicative of future results.

9. Suitability

You should only invest amounts you can afford to lose. You should assess whether the investment aligns with your financial situation, investment objectives, risk tolerance, and investment horizon.

We recommend consulting with independent financial, tax, and legal advisors before making investment decisions.

10. Diversification

While diversification can help manage risk, it does not guarantee against loss. A diversified portfolio can still experience significant losses during market downturns.

11. Third-Party Risk

OMC Investments works with various third parties including custodians, banks, and service providers. The failure or default of any third party could adversely affect your investments.

12. Acknowledgment

By using the OMC Investments Platform and making any investment, you acknowledge that you have read, understood, and accepted all risks disclosed in this document. You confirm that you have the financial ability to bear the risks of loss associated with investments.