1. RISK OF INVESTING IN THE EQUITY OF COMPANIES

You are going to invest in this company because you trust the project and its managers, with the risks that this involves. In Bolsa Social we want to be very clear so that you are fully aware of these risks. Please read this information carefully.

Uncertain performance and possible loss of investment

When you invest in the capital of the companies that we publish you become its shareholder. Therefore, the profitability and value of your investment will depend on the success of the company in which you invest. So, if things are not going well, you may not obtain the return you expected and even, in the worst case scenario, you may lose all or part of your investment (but never more than that).

Your investment is not warranted. This means that, in case the company does not perform well, neither Bolsa Social nor the company’s promoters, nor any guarantee fund, would respond for your investment or any minimum return.

Lack of liquidity

Independently from the exit mechanisms established for each type of investment, you must be aware that the shares of the comany may be highly iliquid. This means that you may not sell these shares easily.

You should be aware that the investors of Bolsa Social should have a medium-long term investment horizon. Investment in social entreprises requires patient and commited capital. We recommend you not to invest in Bolsa Social for speculative reasons or with a short-time perspective.

Furthermore, we recommend you to be aware of the conditions and the transfer restrictions imposed by the Law, the statutes of the companies or the shareholders’s pact (eg. Preferential acquisition rights, Drag-along right, Tag-along right, etc.).

Non-ensured dividends

The dividends are the revenues which a company may decide to distribute among its shareholders when it makes profit. There is no guarantee that the company in which you invest will make or maintain these revenues to share with its shareholders and if it does, that it will decide to distribute them. The companies published in Bolsa Social are, generally, very young and therefore it is unlikely that they would distribute dividends in the initial years. Likewise, the companies which are published in Bolsa Social generally re-invest a large part of their profits in their own enterprise to stimulate their growth and increase the positive social or environmental impact which they generate.

Stock dilution

When you invest, you have the right to a fixed percentage of the company’s assets. Your qualification to weight in the management of the company and your part in the company’s profits will be determined by the said percentage, the company’s statutes and its shareholders’s agreeement. You must take into account that your percentage may diminish if the company increases capital in the future.

Limited monitoring

Bolsa Social was authorised by the Comisión Nacional del Mercado de Valores (CNMV, the Spanish securities markets authority) on 30 September 2015, in accordance with the Law 5/2015 for the promotion of corporate finance, and it is supervised by the CNMV. However, please note that the projects which are published in Bolsa Social do not have to be examined by the CNMV nor by Banco de España. Therefore, the information about the company in which you wish to invest has been provided by the comapny itself and has not been examined by these authorities, and do not consitute a prospectus approved by the CNMV.

In addition, please take into account that Bolsa Social is not an investment firm nor a credit institution and it is not adheered to any investment guarantee scheme or deposit guarantee scheme. Bolsa Social’s activities and the informations shared on the web page and on the platform must not be understood as recommendations by Bolsa Social to carry out investments, nor as financial advice. Each user must form his or her own judgment independently and he or she is the sole responsible for his or her own decisions when investing in the companies published in Bolsa Social.

Recommendations

• Invest only spare money. Do not invest sums that you can not afford losing.

• Diversify your investments in different companies. In this way you will have better chances to get benefit and you will reduce the risk of loosing all your investment.

• Read the documentation attentively, consider all the pros and cons before investing and take your investment decisions responsibly.

• If there is something you do not understand, seek independent professional advice.

2. RISK OF INVESTING IN LOANS

You are going to invest in this company because you have decided to make a bet on it and its management team, with the risks that this implies. At Bolsa Social we want to be very clear so that you understand these risks. Please take the time to read this information carefully.

Risk of not obtaining the expected return.

Although diversification across multiple loans reduces the impact of potential defaults on the return of the loan portfolio, each loan carries the risk of not earning the expected return. In the event that the borrower is unable to meet his or her repayment obligations (partially or in full), you could lose some or all of your loan capital.

This means that, if the company does not do well, neither the Bolsa Social nor the promoters of the company, nor any guarantee fund, guarantee the recovery of your investment or a minimum return.

Bolsa Social was authorised by the Spanish National Securities Market Commission (CNMV) on 30 September 2015 and is subject to supervision by the CNMV. However, the companies we publish on Bolsa Social have not been examined by the CNMV or the Bank of Spain. This means that the information provided to us by the company in which you wish to invest has not been reviewed by these bodies, nor does it constitute a prospectus approved by the CNMV.

Also, please note that Bolsa Social is neither an investment services company nor a credit institution and is not affiliated with any investment or deposit guarantee fund. The activities of Bolsa Social and the information provided on the website and on the platform should not be construed as recommendations by Bolsa Social for investment or financial advice. Each user must form their own independent judgments and make their own decisions regarding their investment activity using the Bolsa Social platform.