ABOUT GREEN CROWD EIIS INVESTMENTS

Investment and Ability to Bear Losses Calculator Guide

This guide helps you assess your ability to bear losses as per Regulation (EU) 2020/1503. It aligns with the logic of our online calculator and allows you to perform the calculations manually on your own if preferred.

Key Principles

Your ability to bear loss is calculated as 10 % of your net worth. You should not invest more than that amount in crowdfunding projects, unless:

a) we give you a risk warning;

b) you provide us with your explicit consent; and

c) you prove to us that you understand the investment and its risks.

Calculation Steps

1. Gather Your Financial Information

Collect the following data for the past 12 months, as of December 31 of the previous year or a more recent date:

a) Net Annual Income

This includes your:

• • labour income – including wages, unemployment benefits and pension payments
  • interests on bank deposits or other debt instruments
  • dividend payments
  • real estate income (e.g. rental income).

Note: Exclude exceptional payments and capital gains.

b) Liquid Assets.

This includes your:

• • Cash savings
  • Deposits
  • Financial instruments (e.g., stocks, bonds, mutual funds)
  • shares and units of collective investment schemes offering redemption rights on at least a weekly basis

Note: Do not include illiquid assets such as real estate, vehicles, pension scheme payments, or non-transferable company shares (including previous crowdfunding investments).

c) Annual Expenses

This includes all the expenditures you have committed for the calendar year:

• alimony and child support payments
• rent and mortgage payments
• loan repayments
• insurance premium payments
• utilities expenses (e.g., electricity, water, gas, heating, internet);
• service subscription payments;
• Other regular financial commitments
• Taxes (if not already deducted from income)

2. Calculate Your Net Worth

Use this formula:

Net Worth = (Net Annual Income + Liquid Assets) – Annual Expenses

3. Determine Your Ability to Bear Losses

Your ability to bear losses is 10% of your Net Worth:

Ability to Bear Losses = Net Worth × 0.10

Important Considerations

• Use financial data as of December 31 of the previous year or a more recent date.
• Consider the stability of your income sources and any potential changes in your financial situation.
• This calculation provides an estimate and should not be considered as financial advice.
• If you are unsure about any part of this process, please ask for clarification or seek advice from a financial professional.

IMPORTANT INFORMATION

Risk Warning 

Investments in crowdfunding projects entail risks, including the risk of partial or entire loss of the money invested. Green Crowd crowdfunding services are not covered by the deposit guarantee scheme established in accordance with Directive 2014/49/EU and transferable securities or admitted instruments for crowdfunding purposes acquired through our crowdfunding platform are not covered by the investor compensation scheme established in accordance with Directive 97/9/EC.

Green Crowd crowdfunding offers are subject to a 4-day reflection period for all non-sophisticated investors from the date that they pledge to invest in one of our crowdfunding offers.

Any decision to invest should be made only on the basis of the relevant documentation for each investment. Past performance is not necessarily a guide to future performance. The value of an investment may go down as well as up and investors may not get back the full amount invested. Investments in small unquoted companies carry an above-average level of risk. These investments are highly illiquid and as such, there may not be a readily available market to sell such an investment. Green Crowd does not provide specific individual advice on the suitability of investments with regard to a potential investor’s individual circumstances, risk tolerance or investment objectives and investors should seek independent financial advice if they are in any doubt whether a product is suitable for them. The content of this webpage should not be construed as financial advice.

To read our full Risk Warning please click here

Green Crowd Limited trading as Green Crowd is regulated by the Central Bank of Ireland.