Risk Disclosure
Investing through FarmX puts your capital at risk. You can lose some or all of the money you invest, and referral commissions are not a guaranteed income. Read this disclosure before you invest, and only invest money you can afford to lose.
This Risk Disclosure describes the main risks of using FarmX. It is not a complete list of every risk, and it is not investment, financial, legal or tax advice.
1. FarmX is not a bank or a savings account
Your Wallet balance is not a bank deposit. FarmX is not a licensed bank or deposit-taking institution. Your funds are not protected by the Nigeria Deposit Insurance Corporation or by any deposit-insurance or investor-compensation scheme. We do not pay interest on Wallet balances.
2. Returns are variable and not guaranteed
At the end of each Cycle, your holding is revalued within the Return range stated for that Farm Project, based on how the project has performed. The outcome can be anywhere in that range, including at the bottom of it, at zero, or negative. A Return range is a range of possible outcomes — it is not a promise of the average, the mid-point or the maximum, and it is not a fixed or guaranteed rate. Returns can be delayed, reduced or suspended.
3. You can lose your capital
Partial or total loss of the money you invest is a real and possible outcome. A project can underperform, be delayed, be suspended, fail, or be terminated. When you exit an investment you may receive less than you put in, and you may receive nothing.
4. Your money is committed
Invested funds are not available on demand in the way a Wallet balance is. You can only realise an investment by the means a particular project allows, and at the value applicable at that time.
5. Project and operating-company risk
Each Farm Project depends on a third-party Operating Company running it. Weather, drought, flooding, pests, disease, crop failure, poor yields, theft, input and commodity price movements, mismanagement, dishonesty or insolvency of the Operating Company, contractual disputes, regulatory action and events outside anyone's control can all reduce or eliminate Returns and capital. FarmX carries out checks on projects and operators, but cannot guarantee outcomes, or the honesty, competence or solvency of every Operating Company.
6. How Returns are determined
Returns are applied periodically by an automated process operated by FarmX and/or the Operating Company, within the project's stated range. Unless a specific project expressly says so, a Return is a revaluation of your holding and is not a distribution of independently audited profits. The schedule and the amounts are not guaranteed.
7. Platform, liquidity and counterparty risk
FarmX depends on third-party providers for hosting, data storage, identity verification and payments, and on access to banking and payment rails. An outage, a security incident, the failure or insolvency of FarmX or of a provider, or the loss of banking or payment access, could delay or prevent deposits, the application of Returns, transfers and withdrawals, and in a worst case could result in loss.
8. Regulatory and legal risk
The legal and regulatory treatment of investment platforms like FarmX, and of multi-level referral reward programmes, can change and varies between jurisdictions. Regulatory action could restrict, suspend or end the service, or change how it works. You are responsible for checking that using FarmX is lawful for you where you live.
9. The Referral Programme is not an income guarantee
Referral commissions depend on other people genuinely investing, and on FarmX continuing to offer the programme on its current terms, which it may change or withdraw. Most participants earn little or nothing. Do not borrow money, or invest money you cannot afford to lose, in the expectation of referral income.
10. No advice
FarmX does not provide investment, financial, legal, accounting or tax advice, and nothing on the Platform — including project descriptions, the returns estimator, and any illustration or example — is a personal recommendation. If you are unsure whether an investment is right for you, seek independent professional advice.
11. Diversification and affordability
Only invest money you can afford to lose and to leave in place for the full project term. Consider spreading investment across more than one project rather than concentrating it in one. Do not invest money you need for essentials, debt repayments or an emergency fund.
12. Tax
Returns, commissions and withdrawals may be taxable. You are responsible for understanding and meeting your own tax obligations.
13. Past performance
Past performance, and any figures produced by the returns estimator or shown in examples, are hypothetical and are not a reliable indicator of future results.
14. Your acknowledgement
By investing through FarmX you confirm that you have read and understood this Risk Disclosure, that you accept these risks, and that you are investing money you can afford to lose.
15. Questions
If anything here is unclear, contact us through the Contact page before you invest.