Why Do We Categorize Investors?
Under the European Crowdfunding Service Provider Regulation (ECSPR), platforms must categorize investors to provide appropriate protections. The category you fall into affects the risk warnings you receive and may impact investment limits.
Retail (Restricted) Investors
Most investors fall into this category. As a retail investor:
- You receive enhanced risk warnings before investing
- We suggest you don't invest more than 10% of your net assets in crowdfunding
- You receive a simulation of your ability to bear losses
- You have a 4-day cooling-off period to cancel investments
Sophisticated Investors
You may qualify as sophisticated if you meet specific criteria:
- Income test: Gross income of at least €60,000 per year, OR
- Net assets test: Net assets of at least €100,000, OR
- Professional criteria: Work in the financial sector in a relevant role
Sophisticated investors receive fewer warnings and may have higher investment limits, but they still have cooling-off rights.
Professional Investors
Professional investors are typically institutions or individuals with significant financial expertise. This category requires formal verification by Fenix Crowd.
💡 You can request to change your category at any time from your account settings.