How it Works
When you make a litigation investment, if the case loses, you are likely to lose the whole of your investment unless some of the investment is insured. There is no Government compensation scheme that covers investment performance. Even when the prospects of a case look good, there is always a range of factors at play in litigation that mean the risk of it losing should still be regarded as high. The prospect of high returns should not induce you to take risks with money that you cannot afford to lose.
The return on a litigation investment will only come if and when the opponent makes a payment. Even successful litigation generally takes months or years to come to fruition. AxiaFunder allows investors to buy and sell their investments amongst themselves, but there is no recognised market in investments and you should always be prepared to hold your investment until the conclusion of the litigation.
Litigation funding offers the potential of producing returns even if the economy as a whole is performing badly, but it should always be seen as a high-risk investment. It is accepted investment practice to ensure that high-risk uncorrelated investments should form part of a wider diversified portfolio of investments. The minimum investment per case is £1,000.
AxiaFunder does not provide investment advice and only seeks investment from investors who have sufficient financial resources and understanding to participate in high-risk investments. Investors who are in any doubt about investing should consider seeking independent professional advice, and you should only invest if you are confident that you understand the general investment risks.
All persons who register as an 'investor' on this Website should read carefully the following warnings before making any investment.
All investment products carry risks. The relevant webpages and documents will cover risks specific to an individual offer. Please bear in mind the following general risks involved when investing through this Website:
YOUR PERSONAL DECISION TO INVEST
A decision to invest in an offer on the AxiaFunder platform, from a special purpose vehicle setup to fund a litigation case (Company), is a personal decision by you and no responsibility for the consequences of that decision is accepted by either AxiaFunder or ShareIn or by any of its partners, directors, agents, employees or other members. To invest through this Website you need to understand the following important risks:
YOUR ELIGIBILITY TO INVEST
The investments on this website are intended for Sophisticated and High Net Worth Investors as defined by the FCA.
YOU ARE NOT COVERED BY THE FINANCIAL SERVICES COMPENSATION SCHEME
When your capital is invested it is not covered by the Financial Services Compensation Scheme (FSCS). Before
it is invested or once the proceeds of investments are returned, your money
will be held by the money recipient in a client account and subject to separate
protections applicable to credit institutions and banks.
LOSSES CAN EXCEED INVESTED AMOUNT
Litigation funding investments carry high risks as well as the possibility of high rewards. Accordingly, each investor should consider very carefully whether such investments are suitable in the light of their own personal circumstances, commitments and available financial resources. Engaging in any investment activity may expose you to a significant risk of losing all of your investment and in some remote circumstances up to double the amount invested.
If a claimant loses a case, it is likely that you will lose all, or part, of your initial investment and receive no outstanding or future interest payments. Alternatively, the litigant may settle the case on terms that do not enable all of the interest and/or capital to be recoverable under the investment or that the defendant has insufficient funds to pay damages sufficient to enable all of the interest and/or capital under the investment to be recovered. For cases with adverse cost risk, we will always put After The Event (ATE) insurance in place. In the unlikely event that this insurance company were to refuse to pay a claim or to fail, you could lose up to double the amount invested. There are two types of ATE insurance: Standard and Non-Avoidable ATE. For both Standard and Non-Avoidable ATE insurance, the policy provides protection against the liability to pay the adverse costs of the opponent if the case is unsuccessful. However, it should be noted that Standard ATE insurance has some conditions which could enable the insurance to avoid paying out if, for example, the claimant misrepresented their claim or their solicitor was found to be negligent
(see blog post by Michael Lent). In such circumstances neither the Company, nor AxiaFunder nor ShareIn will pay you back your investment or compensate you for your losses. Your losses by investing via the AxiaFunder website can exceed the amount you put in.
The majority of the litigation funding opportunities available via the AxiaFunder platform are high risk. Please be warned that the targeted returns on the documents related to each case are not guarantees. Regarding the accuracy of the information related to each investment opportunity, AxiaFunder always has a signed undertaking by the claimant’s solicitors, confirming that the latter have conducted appropriate due diligence into the facts of the case. Whilst AxiaFunder also undertakes due diligence on the facts as presented to us by the claimants and other persons associated with the case, we are heavily reliant upon the claimant's solicitors to provide us with information. Please be warned that neither AxiaFunder nor ShareIn are responsible for checking the accuracy of these facts and statements, which may not always prove to be true or complete. The Company is also reliant on AxiaFunder to cover any operating costs shortfalls of the Company that may arise due to fees from service providers.
As an investor you should be aware that investments through the AxiaFunder website are long term investments that could take several years to yield a return (and investment returns are not guaranteed). No established market exists for the trading of these investment, and therefore investments are not easily realisable. It must be appreciated that there could be difficulty in selling such investments at a reasonable price and, in some circumstances, it may be difficult to sell them at any price. .
DIVERSIFY YOUR PORTFOLIO
Diversification by spreading your money across different types of investments should help reduce your overall risk of financial loss. We highly recommend investors do this to maintain a balanced portfolio. Investors should also consider avoiding putting money in the same investment as immediate family members. Investors should only invest a proportion of their available investment funds in the investments being offered on this Website due to the high risks involved.
AxiaFunder and ShareIn recommend that you take your own tax advice on any investments which you make via this Website.
Neither AxiaFunder nor ShareIn provide advice or make personal recommendations. If you are in any doubt about the action you should take or the contents of a particular Offer Document, you should seek advice from an independent financial advisor authorised under the Financial Services and Markets Act 2000.
Past performance is not a reliable indicator of future performance. You should not rely on any past performance as a guarantee of future investment performance.