Regulatory Disclosures & Risk Statement
Important information regarding the legal risks of alternative asset ownership, fractional liquidity, projected yields, and market volatility.
1. General Risk Warning on Alternative Assets
Investing in and trading physical collectibles, fine art, rare horology, classic motoring assets, fine wine, and fractional real estate involves substantial economic risk, including the possible loss of principal capital. The value of alternative physical assets is subjective and driven by shifting consumer demand, macroeconomic liquidity, and historical condition.
Past historical performance—including returns reflected in the Loop'D Card 100, Art 100, Sneaker 50, or Loop'D 500 Composite indices—is not indicative of future market appreciation or price stability.
2. Fractional Offerings and Illiquidity Risks
Fractional asset units are unregistered securities offered pursuant to exemptions from registration under Section 4(a)(2) and Regulation D of the US Securities Act of 1933, as well as the Swiss Financial Services Act (FinSA). These investments are suitable solely for accredited, qualified, or professional investors who understand the speculative nature of private real estate and collector assets.
While Loop'D facilitates secondary market unit trading following initial lock-up periods, secondary liquidity cannot be guaranteed. Members may experience difficulty exiting fractional positions during periods of market stress or constrained capital availability.
3. Projected Yields and Operating Distributions
Projected rental yields, cap rates, and annual percentage dividends displayed for real estate and income-producing assets are forward-looking estimates based on contractual lease agreements and pro-forma operational expenses. Actual quarterly distributions depend on ongoing tenant occupancy, collection rates, property tax reassessments, and unanticipated capital repair expenditures.
4. Physical Custody and Insurance Disclosures
All physical assets are held in bailment inside specialized depositories insured under commercial policy syndicates led by Lloyd's of London. Insurance coverage is bound strictly to the stated Fair Market Value of the asset as determined by platform valuation criteria. In the event of total casualty or force majeure loss exceeding statutory policy limits, recovery is subject to underwriter adjustment proceedings.