Important Information

Risk Disclosure

Last Updated: 20 November 2025

Capital at Risk

Property investment carries significant risk. You may lose some or all of your invested capital.

  • Past performance is not indicative of future results
  • Property values can fall as well as rise
  • Rental income is not guaranteed
  • Your investment may be difficult to sell (illiquid)
  • This is not a suitable investment for money you cannot afford to lose

Understanding the Risks

Propslio Limited ("we", "us", or "our") is committed to providing transparent information about the risks associated with fractional property investment through our platform. This Risk Disclosure should be read carefully alongside our Terms of Service and Privacy Policy.

Investing in property through tokenization and fractional ownership involves substantial risks. Before making any investment decision, you should:

  • Carefully consider whether this type of investment is suitable for you based on your financial circumstances
  • Understand that you may lose all of your invested capital
  • Seek independent financial, legal, and tax advice if you are unsure
  • Only invest money you can afford to lose
  • Diversify your investments and not invest all your capital in one property or platform

Important: This platform is intended for sophisticated investors and high net worth individuals who understand the risks of property investment. You may be required to certify your investor status before participating.

Investment Risks

Capital Loss Risk

The value of your investment may decrease, and you may receive back less than you invested or lose your entire investment. Property values fluctuate based on:

  • Local and national economic conditions
  • Interest rates and financing availability
  • Supply and demand in the property market
  • Changes in the neighborhood or area desirability
  • Property condition and maintenance requirements

Liquidity Risk

Property is an illiquid investment. Your ability to sell your shares may be limited:

  • There is no guarantee you will find a buyer for your shares
  • The secondary market may have limited trading volume
  • You may need to sell at a discount to attract buyers
  • Sale transactions may take weeks or months to complete
  • Market conditions may prevent sales at desired prices

Recommendation: Treat fractional property investment as a medium to long-term commitment (3-5 years minimum).

Income Risk

Rental income is not guaranteed and may be lower than projected:

  • Tenants may default on rent payments or leave unexpectedly
  • Properties may experience void periods (no tenant)
  • Rental rates may decline due to market conditions
  • Maintenance and repair costs may reduce net income
  • Property management fees and platform fees reduce returns
  • Tax treatment may affect your net income

Market Risk

Property markets can be volatile and affected by external factors:

  • Economic recessions or downturns
  • Changes in government housing policy or taxation
  • Interest rate increases affecting mortgage availability
  • Demographic shifts and population movement
  • Climate change and environmental regulations
  • Unexpected events (pandemics, natural disasters, etc.)

Property-Specific Risks

Physical Property Damage

Properties may suffer damage from various causes:

  • Fire, flood, storm, or other natural disasters
  • Structural defects or deterioration over time
  • Tenant damage beyond normal wear and tear
  • Pest infestations or environmental hazards
  • Unexpected major repairs (roof, plumbing, electrical)

While properties carry insurance, there may be excess charges, coverage limitations, or uninsured losses that reduce returns.

Property Management Risk

Property performance depends on effective management:

  • Property managers may underperform or fail
  • Maintenance may be delayed or inadequately performed
  • Tenant selection and vetting may be poor
  • Management fees may increase over time
  • You have limited control over management decisions

Legal and Title Risks

Legal issues may affect property ownership and value:

  • Disputes over property boundaries or rights of way
  • Undisclosed liens, charges, or legal claims
  • Planning permission challenges or restrictions
  • Leasehold issues (ground rent increases, lease extensions)
  • Changes in property law or landlord regulations
  • Tenant legal action or eviction difficulties

Geographic Concentration Risk

Individual properties carry location-specific risks:

  • Local economic decline or job losses
  • Changes in local amenities or infrastructure
  • Increased crime or antisocial behavior in the area
  • Oversupply of rental properties in the location
  • Environmental issues (flooding zones, pollution)

Mitigation: Diversify by investing in multiple properties across different locations to reduce concentration risk.

Platform and Technology Risks

Platform Operational Risk

Propslio Limited is a relatively new platform and faces operational risks:

  • The platform may cease operations or become insolvent
  • Service disruptions or technical failures may occur
  • The business model may prove unsuccessful
  • Management team changes may affect operations
  • Funding or liquidity issues may limit platform growth

While properties are held separately from platform assets, platform failure could disrupt management, income distribution, and secondary market trading.

Blockchain and Technology Risk

The platform uses blockchain technology which carries specific risks:

  • Smart contract vulnerabilities or coding errors
  • Blockchain network congestion or high transaction fees
  • Cybersecurity breaches or hacking attempts
  • Loss of private keys preventing access to assets
  • Regulatory uncertainty around tokenized securities
  • Technology becoming obsolete or superseded

Custody and Third-Party Risk

We rely on third-party custodians and service providers:

  • Custodian failure or insolvency
  • Errors in custody or transfer of assets
  • Third-party service provider failures
  • Potential conflicts of interest
  • Limited or inadequate insurance coverage

Regulatory and Compliance Risk

The regulatory environment for tokenized property is evolving:

  • New regulations may restrict or prohibit operations
  • Compliance costs may increase significantly
  • The platform may need to restructure or cease operations
  • Tax treatment may change unfavorably
  • Cross-border restrictions may limit investor participation
  • Regulatory authorization requirements may impact the business model

Important: We operate in accordance with current UK regulations, but regulatory changes could materially affect your investment.

Additional Risks and Considerations

Tax Considerations

Tax treatment of fractional property investments can be complex:

  • Rental income may be subject to income tax
  • Capital gains tax may apply when selling shares
  • Tax treatment may vary based on your individual circumstances
  • Tax laws may change, affecting your returns
  • You are responsible for declaring and paying all applicable taxes
  • Cross-border tax implications may apply for non-UK investors

Recommendation: Seek professional tax advice before investing to understand your specific tax obligations.

Inflation and Interest Rate Risk

Economic factors can erode the real value of your investment:

  • High inflation may erode the real value of returns
  • Rising interest rates may reduce property values
  • Competing investment returns may exceed property returns
  • Cost of maintenance and management may increase faster than rental income

Fraud and Misrepresentation Risk

Despite our due diligence processes, risks remain:

  • Property information may be inaccurate or incomplete
  • Financial projections may be overstated
  • Property valuations may be inflated
  • Third parties may engage in fraudulent activities
  • Identity theft or account compromise

Limited Control and Influence

As a fractional owner, you have limited decision-making power:

  • You cannot direct property management decisions
  • You cannot force the sale of the property
  • Major decisions are made by the platform or majority shareholders
  • You may disagree with management strategies
  • Your voting rights (if any) may be limited

Conflicts of Interest

Potential conflicts may arise between parties:

  • Between the platform and investors
  • Between different investor groups
  • Between property managers and investors
  • Related-party transactions may not be at arm's length
  • Fee structures may incentivize behaviors not in your best interest

This Is Not Financial Advice

Nothing on this platform constitutes financial, investment, legal, or tax advice. We do not:

  • Recommend any specific property investment
  • Advise on the suitability of investments for your circumstances
  • Provide regulated financial advice
  • Guarantee returns or outcomes

You should seek independent professional advice before making any investment decision.

Investor Acknowledgment

By investing through Propslio, you acknowledge and confirm that:

  • You have read and understood this Risk Disclosure in full
  • You understand that you may lose all of your invested capital
  • You are investing money you can afford to lose
  • You have sought independent advice or have chosen not to
  • You understand the illiquid nature of property investments
  • You accept all risks described in this disclosure
  • You meet any investor eligibility requirements
  • This investment is suitable for your financial circumstances and investment objectives

Contact Us: If you have questions about these risks or need clarification, please contact our investor relations team before investing:

[email protected]

This Risk Disclosure was last updated on 20 November 2025.
We may update this document from time to time. Please check regularly for changes.