The main risks
The main risks of the Madak application
No warranty
Past performance is no guarantee of future returns. Any predicted estimates or figures may not come true as expected in the future. All investments involve risk, and you may not fully recover your invested capital.
Duration and liquidity
The investments available through the Madak app are designed to be held until the end of the investment period stated in the details of each opportunity. These investments are not listed in the public markets and are therefore inherently less liquid.
The app provides a secondary market for reselling lots periodically, but we don't guarantee the success of the sale or the asking price. If you are not able to hold your investment for the recommended duration, investing through MDC is not recommended.
Risk warning
Investing in real estate is a long-term investment and may be speculative. Investors will not own the property directly, but rather get a stake in a special purpose company (SPV) that owns the property. The value of your investments may fall, and returns may not be achieved as expected.
You may experience delays in payments resulting from rental income or difficulty in selling the property when the investment period ends. Some government regulations may also impose restrictions on sales, which may reduce the number of potential buyers. If MADAC stops doing business, it may face losses, additional costs, or delays in distributions.
Using credit or borrowing cards to invest increases risks, as you will still be obligated to pay your obligations even if the value of your investment falls.
Failure to provide consultations
Madak is not an investment advisor and does not provide any financial, legal, or tax advice. All information displayed through the app is for informational purposes only and does not constitute a recommendation or an invitation to invest. Investors should conduct their own due diligence and consult an independent financial advisor before making any investment decision.
Points to consider when investing in real estate for development or renovation
- The possibility of achieving higher returns: This strategy may achieve higher returns compared to traditional investment, but it involves additional risks such as market fluctuations and uncertainty in the completion period.
- Implementation risks: development delays or additional costs may occur that affect the schedule and expected returns.
- Insurance and Protection: MADAC is committed to ensuring that all performing parties are covered by insurance, including liability towards third parties, and additional insurance against major risks such as fires and natural disasters.
