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What is the purpose of the knowledge test for admission and the simulation to bear loss?

These questionnaires are designed to protect investors and are mandatory under the European Crowdfunding Regulation for all EU platforms offering crowdlending services, such as Goparity. They apply only to Non-Sophisticated Investors.

Key points of the process:

• Knowledge Test: Investors answer a multiple-choice questionnaire immediately after account creation. This assesses financial knowledge, investment experience, objectives, and awareness of risks, including those specific to crowdlending.
• Loss-Bearing Simulation: Evaluates the investor's capacity to bear losses based on financial data like net worth, annual income, and financial commitments.

The questionnaire is repeated every two years to ensure accuracy and up-to-date information. Based on responses:

• Goparity may issue risk warnings if the intended investments are deemed unsuitable.
• Investors choosing to invest amounts above recommended limits are reminded of the risks of capital loss.

The maximum recommended capacity for Non-Sophisticated Investors to bear capital losses is 10 % of their net worth. 

Net worth = (net annual income) + (total net assets) - (annual financial commitments)

Definitions:

• Net annual income: Total annual income received after deducting taxes, social contributions, and other costs. Includes wages, benefits, interest, dividends, and rental income (excluding exceptional payments and capital gains).
• Total liquid assets: Sum of cash and assets convertible into cash within 30 days, excluding real estate, pension schemes, and non-redeemable company shares.
• Annual financial commitments: Includes rent, mortgages, loans, taxes, utilities, subscriptions, and other recurring expenses.