Risk Disclosure
Last updated: May 2026
Investing in private company securities is high-risk and may not be suitable for every investor. The summary below highlights material risks you should consider before transacting on LBX Pro.
Illiquidity
Private company shares are illiquid. There is no continuous public market; transfers may be restricted by the issuer and exits typically depend on an IPO, acquisition, or company-sanctioned tender. You should be prepared to hold positions for years and may be unable to sell when you wish.
Pricing uncertainty
Secondary prices on LBX Pro reflect the most recent observed transactions and indicative quotes from accredited counterparties. Spreads can be wide. The price you see is not a guaranteed transaction price and may diverge materially from the last primary round or any eventual public market price.
Limited disclosure
Private companies are not subject to the disclosure requirements of public issuers. Financial statements, customer concentration, and operational metrics may be unavailable or unaudited. You rely on the seller’s representations and on data the issuer has authorised for distribution.
Concentration and binary outcomes
Private growth companies have binary outcome profiles — significant upside in successful scenarios, total loss of capital in failure cases. Diversification across multiple positions is strongly encouraged. Do not allocate capital you cannot afford to lose.
Transfer restrictions
Many issuers impose right-of-first-refusal, stop-transfer, or lockup provisions. Secondary trades may be executed through forward contracts or SPVs that transfer economic exposure without changing the legal owner of the underlying shares until a permitted event.
Regulatory and tax risk
Eligibility rules, disclosure obligations, and tax treatment vary materially by jurisdiction. Cross-border investments may have additional reporting requirements. Consult independent legal and tax advisers before transacting.
Currency risk
Most private market deals are denominated in US dollars. If your reporting currency differs, currency movements between commitment and exit may meaningfully affect realised returns, either positively or negatively.
Counterparty and operational risk
Settlement of secondary transactions involves multiple parties: brokers, custodians, SPV administrators, and the issuer. Operational failures, fraud, or insolvency of any party can delay or impair settlement. LBX Pro performs counterparty due diligence but does not guarantee against such risks.
AI-generated content
Commentary, briefings, and analysis produced by Leo, the LBX Pro AI analyst, are generated from public data and platform observations. They may contain errors or omissions, and should not be relied on as the sole basis for any investment decision.
Past performance
Historical pricing, returns indicators, and rankings shown on the platform reflect past observations only. They are not indicative of future performance. Realised outcomes may differ materially from any modelled scenario.
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