Don't invest unless you are prepared to lose all the money you invest. These are high-risk investments and you are unlikely to be protected if something goes wrong. Take two minutes to learn more before you go any further.
1. Capital at risk
The value of investments and the income from them can go down as well as up. You may get back less than you originally invested, and in some circumstances you may lose the entire value of your investment. Past performance is not a reliable indicator of future results.
2. Illiquidity
Investments accessed through Haystack are non-market-traded securities. They are illiquid by nature: there is no public market for them and you may be unable to sell your position at a time of your choosing. Position transferability through our secondary path depends on a willing counterparty existing at a price both parties accept - it is a facility, it is not a guaranteed exit.
3. Long holding periods
Most private-market positions are expected to be held for several years. You should only invest capital you can afford to lock up for an extended period. Some positions are subject to explicit lock-up periods during which transfers are restricted.
4. No FSCS protection
Investments arranged through Haystack are not covered by the Financial Services Compensation Scheme (FSCS). If an investment loses value, or the issuer of the underlying asset fails, you will not be compensated by the FSCS. This is fundamentally different from holding a cash deposit with a UK bank.
5. Issuer and asset-specific risk
Returns depend on the performance of the underlying issuer or asset. Private companies, LPs, private credit borrowers and SPV structures face commercial, operational, regulatory and execution risks. Individual positions may be concentrated, undiversified, and exposed to single-counterparty or single-sector risk.
6. Valuation risk
Private-market valuations are typically provided periodically (for example, quarterly) and are based on the methodology used by the issuer or fund administrator. These valuations are estimates and may differ materially from the price at which a position could actually transfer.
7. Tax risk
Tax reliefs such as EIS and SEIS are subject to specific eligibility rules and to continued compliance by the underlying issuer. Tax treatment depends on your individual circumstances and may change over time. We do not provide tax advice. You should seek advice from a qualified tax adviser.
8. Regulatory risk
The regulatory environment for private-market investments and digital-asset infrastructure is evolving. Changes in law, regulation or regulatory interpretation may impact your investment, your ability to access it, or the platform itself.
9. Operational and technology risk
Haystack uses digital infrastructure, including distributed-ledger technology, to record beneficial ownership and orchestrate settlement. Like all software systems, this infrastructure may be subject to errors, outages, security incidents or changes in underlying protocols. We apply strong controls - including audits, monitoring and reconciliation - but we cannot eliminate operational risk entirely.
10. Counterparty risk
Services provided through Haystack rely on regulated custodians, banks, identity providers and settlement counterparties. The failure of any of these counterparties could delay or impair access to your position or to any cash balances.
11. Suitability and appropriateness
Investments in non-market-traded securities are not suitable for everyone. Before you can access investor features you will be asked to confirm the type of investor you are and, where required, complete an appropriateness assessment. You should only proceed if you understand the risks and have the capacity to absorb a total loss.
12. Where to learn more
For more general information about high-risk investments, see the FCA InvestSmart resources. If you would like to discuss how the platform works before proceeding, please contact us through the enquiry form on our homepage.