Risk Disclosures

What CreativeFinance.app Is

CreativeFinance.app is a peer-to-peer marketplace that facilitates direct lending between individual lenders and borrowers. We provide:

• A platform to connect borrowers seeking capital with lenders willing to provide funding
• Tools for deal presentation, document generation, and fund custody
• AI-powered deal analysis to assist with due diligence
• Escrow services through banking partners

What CreativeFinance.app Is NOT

• Not a Bank: We are not a bank, credit union, or licensed lending institution. Funds held in escrow are not FDIC insured.
• Not an Investment Fund: We do not pool investor capital. Each loan is a direct agreement between an individual lender and borrower.
• Not a Broker-Dealer: We do not buy or sell securities, and loans made through our platform are not securities.
• Not an Investment Advisor: We do not provide personalized investment advice. Information on the platform is for informational purposes only.
• Not a Guarantor: We do not guarantee the performance of any loan or the repayment of any principal or interest.

Principal Risk

There is no guarantee that borrowers will repay their loans. If a borrower defaults, you may lose some or all of the principal amount you lent. Recovery of funds from defaulted loans may be limited, time-consuming, or impossible.

Interest/Return Risk

The returns displayed on borrower listings represent the borrower's proposed repayment terms, not guaranteed returns. Actual returns depend entirely on whether the borrower repays as agreed. We make no representations about expected returns or yields.

Illiquidity Risk

Once you commit funds to a loan, those funds are locked until the loan matures or is repaid. There is no secondary market for loans made through our platform. You cannot sell or transfer your loan position before maturity.

Borrower Default Risk

Borrowers may default on their obligations for various reasons, including:

• Failure of the underlying real estate transaction
• Economic hardship or business failure
• Fraud or misrepresentation
• Inability to refinance or sell the property
• Market conditions affecting property values

Real Estate Market Risk

Loans on our platform are typically secured by or related to real estate transactions. Real estate markets can decline in value, properties may not sell as expected, and economic conditions can affect borrowers' ability to complete their deals.

Platform Risk

While we implement security measures and work with banking partners, there are risks including:

• Technical failures or service interruptions
• Cybersecurity incidents
• Changes to our business operations
• Regulatory changes affecting our ability to operate

CreativeFinance.app makes no guarantees regarding:

• The accuracy of information provided by borrowers
• The likelihood of loan repayment
• The value or validity of any collateral
• The success of any real estate transaction
• Any particular rate of return on loans
• The creditworthiness of any borrower
• The enforceability of loan documents in any jurisdiction

While we provide AI-powered deal analysis and risk assessments, these tools are for informational purposes only and should not be relied upon as the sole basis for lending decisions. You must conduct your own due diligence.

State Licensing

Peer-to-peer lending may be subject to state-specific regulations. Users are responsible for understanding and complying with the laws of their jurisdiction. Some states may restrict or prohibit certain lending activities.

Tax Implications

Interest income from loans may be taxable. Losses from defaulted loans may or may not be deductible depending on your circumstances. We provide transaction records, but we do not provide tax advice. Consult a qualified tax professional for guidance specific to your situation.

Not Investment Advice

Nothing on this platform constitutes investment advice, financial advice, trading advice, or any other sort of advice. You should not treat any of the platform's content as such. We do not recommend that any loans be bought, sold, or held by you. Conduct your own due diligence and consult your financial advisor before making any lending decisions.

Borrower Disclosures

If you are a borrower on the platform:

• You are entering into legally binding loan agreements with individual lenders
• You are obligated to repay according to the terms of your promissory note
• Failure to repay may result in collection activities and damage to your reputation on the platform
• Late payments may incur additional fees as specified in your loan documents
• Default information may be shared with credit reporting agencies or collection agencies

CreativeFinance.app is intended for use by adults who are at least 18 years of age. By creating an account, you confirm that you meet this age requirement. We verify user age through our identity verification (KYC) process using Stripe Identity. If we determine that a user is under 18 years of age, their account will be terminated and any funds will be returned in accordance with our policies.

Questions?

If you have questions about these disclosures or need clarification on any risks, please contact us at support@creativefinance.app