Risk Warning

Please read the following risk warning carefully before making any investment. UOWN facilitates loans to property development projects. While we take steps to protect your interests, all investments carry risk and you should only invest money you can afford to lose.

1. Your capital is at risk and returns are not guaranteed

When you invest through UOWN, you are lending money to a property development project. There is a risk that the borrower may not be able to repay the loan in full, or at all. You could lose some or all of the money you invest. This is not a savings product and your capital is not protected.

What do we do to minimise this risk?

We carry out thorough due diligence on every project before it is listed on the platform. This includes assessing the developer's track record, the financial viability of the project, and the value of the underlying property. We only work with developers we have confidence in, and many projects are sourced through our strategic partner, The Parklane Group, who have over 40 years of property development experience in the UK.

2. The developer or borrower may default

The developer borrowing funds may encounter financial difficulties, go insolvent, or fail to complete the project. If this happens, there may be delays in receiving your returns, or you may receive less than expected.

What do we do to minimise this risk?

We vet all developers carefully before listing any project. Our agreements include step-in rights, meaning we can intervene or appoint a replacement developer if the original party is not performing. Funds are released in stages, tied to verified construction milestones, and signed off by independent third parties. This limits the amount at risk at any given point during the development.

3. Construction and development risks can affect outcomes

Property development is subject to risks including planning delays, construction cost overruns, supply chain issues, and adverse weather. These can delay the project completion, push up costs, and reduce the final profit - all of which may affect your returns or the timeline for receiving them.

What do we do to minimise this risk?

Project budgets include contingency allowances for unexpected costs. Work is tendered competitively to ensure fair pricing, and progress is monitored by independent surveyors. Developments carry appropriate insurance cover. We also ensure that developers have meaningful financial commitment in each project, aligning their interests with yours.

4. Property values can fall

The value of the completed development depends on market conditions at the time of sale. If the UK property market declines, or if local demand weakens, the property may sell for less than projected. In a worst-case scenario, the sale proceeds may not fully cover the outstanding loan, which could result in a loss of capital.

What do we do to minimise this risk?

We use conservative valuations when assessing projects and build in buffers against market movement. We focus on locations with strong underlying demand and work with experienced developers who understand their local markets. Where possible, projects are structured with flexibility to adjust the exit strategy - for example, switching from sale to rental if market conditions require it.

5. Your investment is illiquid

Once you have invested, your money is committed for the duration of the loan term. There is no secondary market and no way to exit early. Development loan terms typically range from 6 months to 3 years, and delays can extend this further. You should not invest money that you may need access to in the short term.

6. Loans may be subordinated to other debt

Some projects may also have senior lending in place, such as a bank loan. In these cases, the senior lender would be repaid before investor capital in the event of a shortfall. This means that if the project does not generate sufficient returns to repay all parties, investors may bear a greater proportion of any loss.

What do we do to minimise this risk?

The capital structure of each project is clearly set out in the project information before you invest. We assess the loan-to-value ratio and ensure there is sufficient headroom in the projected value of the completed development to cover all layers of funding.

7. Past performance is not a reliable indicator of future results

While UOWN has a strong track record to date, past performance does not guarantee future results. Each project is different, and market conditions, construction costs, and property values can all change. Projected returns are estimates based on our best analysis at the time, not promises.

8. No coverage under the Financial Services Compensation Scheme (FSCS)

Your investment is not covered by the Financial Services Compensation Scheme. If a project loses money, you cannot claim compensation from the FSCS. This is standard for investments of this nature.

9. UOWN is not regulated by the FCA

UOWN is not currently regulated by the Financial Conduct Authority. Our loan-on-loan model operates outside the scope of FCA regulation. We were previously an appointed representative of an FCA-authorised firm and have retained the compliance standards, governance processes, and investor protection practices we built during that period. However, you do not have access to the Financial Ombudsman Service in relation to your investments with us.

10. Platform risk

In the unlikely event that UOWN ceased to operate, your investments would continue to exist within ring-fenced SPV structures. An administrator would be appointed to manage the completion of projects and distribution of returns. However, this process could cause delays and there is no guarantee that outcomes would be unaffected.

11. Diversification

Concentrating your investment in a single project increases your exposure to that project's specific risks. Spreading your investment across multiple projects and maintaining a diversified portfolio outside of UOWN is good financial practice and helps to manage overall risk.

12. No financial advice

UOWN does not provide financial advice or recommendations. If you are not sure whether investing through UOWN is right for you, you should seek the advice of an independent financial adviser who is authorised under the Financial Services and Markets Act 2000.

This list of risk factors does not necessarily cover all possible risks involved. If you are unsure about any aspect of the information provided by the company, you should seek independent professional advice before investing.