Investing in technology that is still in development is an activity that can end in two ways: well or badly. Please refer to the risks associated with investing and understand that in the event of a loss of money, the investor is solely responsible for the lost funds.

  • Default Risk. Sometimes a borrower is unable to pay back debts or bills.
  • Inflation Risk. Higher prices lower the purchasing power of your investments. If your investment returns don’t exceed inflation you are losing purchasing power.
  • Economic Risk. Economic recessions and depressions can have profound effects on asset valuations.
  • Reinvestment Risk. Let’s assume that many years ago you bought a Treasury Bond paying 8% that is maturing. Now the interest rate is less than 3%. If you reinvest it will have to be at a much lower rate.
  • Liquidity Risk. If you need to sell an investment you may not be able to find a buyer in a timely manner.
  • Regulatory / Political Risk. Governments have a large effect on social stability and the economic environment for investment.  Look for political stability and business friendly policies.

Source: http://www.arborinvestmentplanner.com/types-of-investment-risk/

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