Returning the principal amount of an investment depends on the terms of each specific offering. While businesses are generally obligated to repay the principal, this repayment is not guaranteed and is subject to the business’s financial performance and circumstances. In the event of bankruptcy or insufficient assets, investors may face a loss of their principal.
Some businesses may provide collateral, guarantees, or security to support their repayment obligations. These measures, if available, are outlined in the offering document for each campaign. The offering document specifies whether such guarantees or collateral cover the principal, other repayments, or both.
Investors are strongly encouraged to review the offering document carefully to understand the specific terms, risks, and protections associated with each investment.