Articles in this section Why invest in real estate loans? Introducing Investing Can anyone become an investor on AltX? What are the key investment risks? Investment Amounts Explained What are the minimum and maximum investment amounts? Can I purchase 100% of a loan? Is my capital committed for the full term of the loan? Investment Documents Explained Can a foreign investor register and invest with AltX? What are the key investment risks?Last update: January 22, 2021There are a number of key investment risks that any investor should be aware of prior to using AltX. The Website facilitates the subscription for Notes in Special Purpose Vehicles owned by AltX (“Notes”).Subscribing for Notes through AltX is not without risk. Below we summarise the general risks associated with subscribing for Notes. There may also be other risks which are specific to a Note you subscribe for or its corresponding underlying loan agreement for any given transaction. TYPE OF RISKEXPLANATIONBorrower RiskA borrower fails to meet payment obligations or otherwise meet the terms of the Loan or has other financial difficulties. This could be for several reasons, including:an inability to pay interest because of reduced rental income in respect of the Security Property; oran inability to pay interest because of reduced income (generally); oran environmental or demographic issue impacting on the ability of the Security Property to generate income.This could adversely affect the income attributable to a Loan, distributions to Noteholders in respect of that Loan and the value of the Loan.Documentation RiskA deficiency in documentation could, in certain circumstances, adversely affect the return on a Loan. This may make it difficult for The Loan Note Issuer to enforce its mortgage over the Security Property, to enforce any guarantee in respect of the Loan and may also affect the ability to recover any penalties imposed against the Borrower. Property MarketThe property market declines in value, or the value of any property which secures a Loan declines. This will cause the LVR in respect of the relevant Loan to increase and, in circumstances where The Loan Note Issuer enforces its security over the relevant property this may mean that The Loan Note Issuer may not be able to recover the full amount of the monies lent. Valuation RiskThere is a risk that a valuer may incorrectly value a Security Property and that the property is worth less than the amount stated in the relevant valuation. Enforcement RiskWhere The Loan Note Issuer takes enforcement action in respect of a defaulting Loan, the costs incurred by The Loan Note Issuer in doing so could be substantial and significantly erode any monies recovered from the Borrower. Loan Maturity and Investment Term RiskIt is intended that the Loans will usually be for terms of between 3 and 24 months. There is a risk that Borrowers will be unable to repay or refinance their Loans upon their maturity.In such circumstances, The Loan Note Issuer may need to extend the term of the relevant Loan beyond the original maturity date. Diversification RiskThe Loan Note Issuer aims to present Investors with the opportunity to participate in a diverse range of mortgage assets. Liquidity RiskThe Notes in The Loan Note Issuer are not listed on any Exchange nor are they able to be redeemed. Secondary MarketWhereas The Loan Note Issuer anticipates that a secondary market may develop in the notes, allowing for liquidity, there can be no guarantee that liquidity will exist AltX is not a bank, and is not regulated by the Australian Prudential Regulation Authority (APRA). Investment in its products is not covered by the Australian Government’s Financial Claims Scheme (colloquially known as the ‘Government Bank Guarantee’ which covers deposits up to A$250,000 per depositor, per bank).As with all investment products, there are risks in investing in AltX’s products.Investing in the products offered by AltX is not the same as depositing money in a term deposit offered by a bank. Investing in AltX products has a higher level of risk compared to investing in a bank term deposit.