RISK
Last updated: June 2026
These Risk Notes are intended to help Users understand the principal risks associated with participation in Projects made available through the Lombok Invest Capital Platform. Participation in any Project involves risk. Before participating, Users should carefully review these Risk Notes together with: - The Terms & Conditions; - The Investor Declaration; - The applicable Project Participation Agreement; - Any Project Documentation. Users should only participate if they understand and accept the risks described herein.
Participation in Projects does not guarantee: - Revenue distributions; - Profit; - Capital appreciation; - Project success; - Property value growth; - Buyback opportunities; - Future liquidity. Any projected revenue, estimated yield, occupancy forecast, valuation estimate, or financial illustration is provided for informational purposes only. Actual results may differ materially from projections or estimates. Past performance does not guarantee future performance.
Project revenue may depend significantly on occupancy levels. Occupancy may be affected by: - Seasonality; - Tourism demand; - Economic conditions; - Competition; - Travel restrictions; - Market trends; - Consumer behavior. Lower occupancy may reduce Project revenue and distributions.
Projects may incur unexpected expenses, including: - Maintenance costs; - Repair costs; - Renovation costs; - Insurance costs; - Utility costs; - Staffing costs; - Property management costs. Unexpected expenses may reduce the amount of revenue available for distribution.
Real estate markets may fluctuate. Property values and Project performance may be affected by: - Economic conditions; - Interest rates; - Inflation; - Tourism trends; - Local market conditions; - Political developments; - Investor sentiment. Property values may increase, remain stable, or decline.
Participation Units may be illiquid. Users may not be able to sell, transfer, redeem, or exit their Participation Units at the desired time or price. The Company is not obligated to provide a buyback mechanism. Where a buyback mechanism is offered, availability may depend on liquidity, market conditions, regulatory considerations, and operational factors. Users should be prepared to hold Participation Units for an extended period of time.
Laws, regulations, regulatory interpretations, licensing requirements, tax rules, and compliance obligations may change over time. Such changes may affect: - Platform operations; - Project structures; - Participation rights; - Revenue distributions; - Reporting requirements; - Tax treatment. The Company cannot guarantee that future regulatory changes will not affect Projects or Users.
Projects may generate revenue in Indonesian Rupiah (IDR) or other currencies. Users may hold assets, income, or obligations denominated in different currencies. Exchange rate fluctuations may affect: - Revenue distributions; - Project valuations; - Buyback values; - Overall financial outcomes. Currency movements may positively or negatively impact returns.
The Platform relies on technology systems, software, internet infrastructure, databases, service providers, and digital tools. Risks may include: - Software errors; - System failures; - Cybersecurity incidents; - Data loss; - Service interruptions; - Third-party outages. While the Company intends to maintain appropriate security measures, no technology system can be completely free from risk.
Projects may be affected by events beyond the Company's reasonable control. Such events may include: - Earthquakes; - Volcanic activity; - Tsunamis; - Floods; - Fires; - Pandemics; - Epidemics; - War; - Civil unrest; - Government actions; - Natural disasters. Such events may reduce Project performance, delay operations, or negatively affect revenue generation.
The Company may decide to sell, transfer, refinance, restructure, or otherwise realize a Project. Following such an event: - Participation Units may be redeemed or terminated; - Eligible Users may receive a proportional allocation of net proceeds in accordance with the applicable Project Participation Agreement; - Future distributions may cease. The timing, value, and outcome of any Project sale cannot be guaranteed.
Tax laws and tax treatment may change over time. The tax consequences of participating in a Project may vary depending on: - Country of residence; - Tax status; - Personal circumstances; - Future legal changes. The Company does not provide tax advice. Users are responsible for obtaining independent tax advice where appropriate.
Information provided through the Platform is intended for informational purposes only. Nothing provided by the Company constitutes: - Legal advice; - Tax advice; - Investment advice; - Financial advice; - Accounting advice; - Professional advice of any kind. Users should seek independent professional advice where appropriate.
By participating in a Project, Users acknowledge that: - They have reviewed these Risk Notes; - They understand that participation involves risk; - They understand that returns are not guaranteed; - They understand that Participation Units may be illiquid; - They accept the risks described in these Risk Notes. Participation decisions are made voluntarily and at the User's own discretion.