No guaranteed return
No fixed return, minimum profit or guaranteed repayment of Capital is promised. The Capital Provider receives 20% of actual Net Profit only if Net Profit is realised.
Capital-loss risk
Ordinary commercial loss is borne by the Capital Provider. Some or all Capital may be lost. Poor performance alone does not establish fault by the Muḍārib.
Liquidity and fixed-term risk
The standard agreement runs for 12 months. Capital may be illiquid while committed to property, procurement, supply, process-based or SME partnership transactions.
Early-cancellation consequences
Early cancellation or withdrawal causes the Capital Provider to forfeit all Net Profit realised, accrued, declared or otherwise attributable to the Capital. Any profit already paid may be deducted from the amount otherwise payable. The reconciled balance is payable within one Business Month after a valid Cancellation Note.
Opportunity and allocation risk
The investment strategy is opportunity-led. Capital may be deployed across one or more approved categories, and there is no assurance that every category will be used or that a suitable opportunity will be available immediately.
Property risk
Property transactions may be affected by valuation movements, vacancy, tenant default, maintenance, conveyancing delays, rates, taxes, regulatory requirements and difficulty selling at the expected price or time.
Procurement and tender risk
Registration or submission does not guarantee an award. Bids, quotations, purchase orders, delivery acceptance, invoicing and payment may be delayed, rejected, disputed or cancelled.
Medical-supply and process risk
These transactions may involve supplier, technical, quality, regulatory, logistics, inventory, customer-payment and foreign-exchange exposure where applicable.
Counterparty and operational risk
Underlying businesses, customers, suppliers, operators or partners may default, misrepresent information, underperform or become insolvent.
Legal, regulatory and tax risk
Laws, procurement requirements, permits, tax treatment and professional obligations may affect timing, cost, structure or viability. Capital Providers should obtain independent tax and legal advice.
Trust-account limitation
The Isaacs Attorneys trust account is a temporary holding and controlled distribution mechanism. It is not the operating investment, does not prevent commercial loss and does not guarantee Fidelity Fund compensation.
Concentration and affordability
A Capital Provider should consider whether the proposed amount is affordable, appropriately diversified and suitable given personal liquidity needs and the possibility of total loss.