Risk Disclosure

Before you invest

Property can build wealth. It can also lose money, tie up your cash, and disappoint you for years at a time. This document sets out what can go wrong on the EkoBuja platform. It is deliberately blunt.

Read it before you buy your first share, and read it again before you commit money you would struggle to lose. This is not a complete list of every risk. Nothing here is advice about whether an EkoBuja investment is right for you.

Only invest money you can afford to lose, and only money you will not need back at short notice.

1. You can lose money

The value of a property share can fall as well as rise. You may get back less than you put in, and in a bad case you could lose a substantial part of your investment. Buying property in fractions does not make property safer. It makes it smaller.

2. Nothing is guaranteed

EkoBuja does not guarantee:

• That a property will produce income.
• That a distribution will be paid in any period.
• That a share will hold its value.
• That you will find a buyer when you want to sell.
• That you will get your capital back.

Projections and past performance

Any figure described as a yield, a projection, a target, or an illustration is an estimate built on assumptions. Assumptions fail. Treat projections as a possible outcome, not a promise. Past performance tells you nothing reliable about what happens next.

3. Property values move both ways

Property prices are driven by things nobody on the platform controls: interest rates, the strength of the economy, oil revenue, currency movements, government policy, infrastructure decisions, crime and security, and shifts in what tenants want. A neighbourhood that is desirable today can be less so in five years.

4. Your money is not liquid on demand

This is the risk investors underestimate most. There are two ways out of a holding, and neither is a cash machine.

On the secondary market you can list your shares for sale to other EkoBuja investors. Whether anyone buys, and at what price, depends entirely on demand. There may be no buyers, or buyers only at a price well below what you paid or below the published share value. A listing can sit unfilled indefinitely. EkoBuja does not buy your shares on the secondary market and does not guarantee a sale.

We may buy shares back directly at as low as 80% of the prevailing share value. On a ₦500,000 holding, that is ₦100,000. Buyback is a discretionary facility, not a right. We can limit it, cap the volume we take, suspend it, or decline your request. It is most likely to be constrained when the most people want it.

Plan on a multi-year horizon. If you might need the money in six months, this is the wrong place for it.

5. Buyback prices below share value, and is not a floor

Buyback at as low as 80% means you might take up to a 20% haircut every time you use it. Buying in and buying out quickly loses money even if the property does nothing wrong.

Buyback is not a price floor. If the share value falls, buyback falls with it. You would receive as low as 80% of a lower number.

6. Income depends on tenants

A building can sit vacant between tenants. A tenant can stop paying, and recovering arrears or possession through the Nigerian courts is slow and expensive. A major tenant leaving can wipe out most of a property's income. Rents can be renegotiated downwards. When income stops, distributions stop. There is no reserve that guarantees you a payment.

7. Costs eat into returns

What reaches you is what is left after the building has been paid for, including property management fees, maintenance and repairs, security, utilities, service charges, insurance, statutory rates, taxes, and EkoBuja's own fees. A large unplanned repair can consume a period's income entirely, and there will be no distribution that period.

8. Share value is an estimate, not a price

The share value we publish is our assessment, based on valuations, income performance, approved property impact adjustments, and market evidence. It is not a price anyone is obliged to pay you, a guaranteed exit price, or a market price set by supply and demand. The secondary market price can be materially above or below it. Two qualified valuers can look at the same building and reach different numbers.

9. Property impact adjustments involve judgement

Facility managers log work on each property. Where the work materially affects what the building is worth, it is flagged and, once approved, carries a property impact percentage that feeds into share value. Physical upkeep can be priced into your holding. It is still an assessment, not a transaction. The facility manager and the approver can both be wrong, and the adjustment can be negative.

10. You are concentrated

A share buys you exposure to one specific building, not a portfolio. If that building floods, burns, loses its anchor tenant, sits in a declining area, or has a title problem, your share is directly exposed to it. You are also concentrated in one country, one currency, and one property market. Spreading your money across several properties reduces some of this. It does not remove it.

11. Inflation and currency

Naira inflation can erode the real value of both your capital and your distributions. Naira depreciation reduces what your investment is worth measured in foreign currency. Construction and maintenance inputs are often imported and priced against the dollar, so a weaker naira raises the cost of maintaining a building and reduces net income.

12. Interest rates and the wider economy

When interest rates rise, property tends to become less attractive relative to fixed income, and property values tend to fall. A recession, a sharp fall in oil revenue, banking-sector stress, or a fall in confidence can reduce demand for space, reduce rents, and reduce the pool of buyers on the secondary market at the same time.

13. Legal and title risk

Nigerian property carries specific legal risks: defective or competing title, governor's consent and registration delays, compulsory acquisition, community and boundary disputes, tenancy law that makes recovery of premises slow, and planning or regulatory action. We conduct due diligence and take professional advice, but no due diligence eliminates the risk entirely. Litigation over a property can take years and consume income while it runs.

14. Development and works

Where a property involves construction, refurbishment, or major works, add cost overruns, contractor failure, delayed completion, materials price rises, and the risk that finished works do not deliver the value expected.

15. Insurance does not cover everything

Properties are insured, but insurance has limits, exclusions, and deductibles. A claim can take a long time to settle, during which income may be interrupted.

16. Third parties can fail

The platform depends on banks, payment processors, identity verification providers, valuers, insurers, contractors, facility managers, and cloud infrastructure. Any of them can fail, make a mistake, be defrauded, go out of business, or be unavailable. We select providers carefully, but we do not control them.

17. Technology, security, and cyber risk

The platform can go down. Maintenance, outages, network failure, power failure, and denial-of-service attacks can prevent you from accessing your account or transacting. Despite encryption, access controls, dual approval on money movement, and regular testing, no system is completely secure.

Weak passwords, reused passwords, shared one-time codes, phishing emails, and compromised phones are the most common route to a stolen account. We will never ask you for your password, your card PIN, or a one-time code.

18. Fraud and impersonation

People will use the EkoBuja name to try to defraud you: fake websites, fake WhatsApp groups, fake account managers, and fake offers promising fixed returns. We will only ever ask for payment into your EkoBuja wallet through the platform itself. We do not take investment by personal bank transfer, we do not run investment groups on WhatsApp or Telegram, and we do not offer guaranteed fixed returns. Report anything else to support@ekobuja.com.

19. Operational and business risk

EkoBuja is a young company. It faces execution risk, funding risk, key-person risk, and competitive risk. If EkoBuja were to stop operating, your shares would remain your property and the register would remain the record of your ownership, but realising the value could take considerable time and involve significant cost. There is no guarantee about the process, the timing, or the price achieved.

20. Regulation, policy, and tax

Laws and regulations affecting property investment, fractional ownership, financial services, and data in Nigeria can change. Tax treatment can change too, and it depends on your own circumstances. Distributions, gains, and other returns may be taxable. Withholding tax may be deducted at source. Tax is your responsibility.

21. Conflicts of interest

EkoBuja earns fees on transactions, on management, and on the buyback spread. We also produce the valuations that drive share values. We manage these conflicts through internal controls, including separating those who propose transactions from those who approve them, requiring two people to approve money movements above set thresholds, using independent professional valuers, and keeping facility managers away from investor records. The conflicts still exist.

22. We do not advise you

EkoBuja does not provide investment, legal, tax, or financial advice, and does not assess whether an investment suits your circumstances, your objectives, or your tolerance for risk. Property pages, reports, market commentary, projections, and share values are information. The decision is yours.

Before you commit money

Check that you can say yes to all of these.

• I understand I can lose money, including a substantial part of what I invest.
• I understand no return, income, or distribution is guaranteed.
• I understand I may not be able to sell when I want to, and that buyback is discretionary and priced at up to 80% of share value.
• I am investing money I can afford to lose and will not need back at short notice.
• I am prepared to hold for several years.
• I have read the Terms of Use and the Privacy Policy.
• I am making this decision myself, and I have taken independent advice if I needed it.

Questions

If any of these gives you pause, stop and get advice before you invest. EkoBuja Limited (RC 8098089), support@ekobuja.com, www.ekobuja.com.