1. General Risk Warning
Trading bankruptcy claims involves significant risks, including the potential loss of your entire investment. You should carefully consider whether purchasing or selling claims is appropriate for you in light of your financial circumstances and risk tolerance.
TerraClaim LLC does not provide investment, legal, tax, or financial advice. The information provided on the Platform is for informational purposes only and should not be construed as advice of any kind.
2. Bankruptcy Proceeding Risks
- Distribution Uncertainty: The timing, amount, and form of distributions from the Terra/Luna bankruptcy estate are uncertain and subject to change based on court decisions, asset recoveries, and other factors.
- Claim Allowance: Claims may be disputed, reduced, or disallowed by the bankruptcy court. There is no guarantee that any claim will be allowed in full or at all.
- Priority and Subordination: Claims may be subordinated to other claims or may have lower priority than anticipated, resulting in reduced or no recovery.
- Proceeding Duration: Bankruptcy proceedings may take years to conclude. There is no guarantee of when or whether distributions will occur.
3. Transfer Risks
- Court Approval: The transfer of claims may require bankruptcy court approval, which is not guaranteed and may be subject to conditions or delays.
- Transfer Restrictions: Certain claims may be subject to transfer restrictions or may be non-transferable under applicable law or court orders.
- Documentation Requirements: Incomplete or incorrect documentation may result in transfer delays or rejections.
4. Objection Risks
- Claim Objections: The debtor, trustee, or other parties may object to claims, resulting in litigation and potential reduction or disallowance.
- Transfer Objections: Third parties may object to claim transfers, potentially delaying or preventing completion of transactions.
- Fraudulent Transfer Claims: In certain circumstances, transfers may be subject to avoidance as fraudulent or preferential transfers.
5. Timing Risks
- Market Timing: Claim values may fluctuate significantly based on developments in the bankruptcy case, market conditions, and other factors.
- Settlement Timing: The time required to complete claim transfers may vary and is subject to court schedules and administrative processes.
- Distribution Timing: Even after a claim is acquired, distributions may be delayed for extended periods.
6. Valuation Risks
- Uncertain Recovery: The ultimate recovery on claims is highly uncertain and may differ materially from estimates or projections.
- No Guaranteed Liquidity: There may be limited or no secondary market for claims you purchase. You may not be able to sell claims when desired.
- Information Asymmetry: Sellers may have information about claims that is not available to buyers.
7. Platform Risks
- No Verification Guarantee: While we endeavor to verify claim information, TerraClaim does not guarantee the accuracy, completeness, or validity of any claim listed on the Platform.
- Counterparty Risk: TerraClaim does not guarantee the performance of transaction counterparties.
- Technical Risks: The Platform may experience technical issues, outages, or security incidents that could affect your ability to transact.
8. Due Diligence
You are solely responsible for conducting your own due diligence before entering into any transaction. This includes reviewing claim documentation, understanding the bankruptcy proceedings, assessing risks, and consulting with qualified legal, tax, and financial advisors as appropriate.
9. No Guarantees
TerraClaim makes no representations, warranties, or guarantees regarding:
- The outcome of any bankruptcy proceeding.
- The value, validity, or allowance of any claim.
- The success of any transaction.
- The accuracy of any information provided by users or third parties.
- Any expected or projected returns.
10. Contact
For questions about these risks, please contact us at: hey@terra-claim.com