Investor
Terms & Conditions

Last Updated 08/11/2024

These Terms and Conditions will apply from 08/11/2024

Part 1: Investor Terms and Conditions

Part 2: IF-ISA Terms and Conditions

Part 3: Reserve deals Terms and Conditions

Part 4: Secondary Market Terms and Conditions

Part 5: Corporate Investor Terms and Conditions

Part 6: Bereavement process Terms and Conditions

Part 7: Loan Tiers order of priority Terms and Conditions

Part 8: Wind-down Planning

Part 9: Duty of Confidentiality

Part 10: SIPP Terms and Conditions

(together, our "Terms and Conditions")

PART 1 - INVESTOR TERMS AND CONDITIONS

1. Introduction

Before you create an Investor Account, you must read these Investor Terms and Conditions.
These Investor Terms and Conditions define:

Who can become an Investor on the Platform;
Kuflink's relationship with the Investor;
How the Investor can lend to a Borrower;
The Intermediary Services provided by Kuflink;
The specific Kuflink IF-ISA arrangements;
The specific arrangements in respect of the Kuflink Secondary Market, Refer a Friend promotion and New Investor promotion.

These Investor Terms and Conditions should be read alongside other important Kuflink documents, such as:

FAQs;
Knowledge Base;
User Guide (including Website Terms of Use);
Risk Statements;
Lender Agreement; and
Privacy Policy.

You can always access and download the latest version of these documents and the Investor Terms and Conditions from the Kuflink website, but you should also keep a copy for safekeeping.
In these Terms and Conditions "Kuflink", "we", "us" or "our" means Kuflink Ltd. Kuflink is a limited company registered in England and Wales (company number 08460508). Our registered office address is 21 West Street, Gravesend, DA11 0BF. We are authorised and regulated by the Financial Conduct Authority (reference number 724890). In these Terms and Conditions "You" or "your" means the Investor.
By opening and using an Investor Account, you agree to be bound by these Investor Terms and Conditions. You agree to use the Kuflink Platform for the purposes defined, and in accordance with, these Investor Terms and Conditions.
If you have read these Investor Terms and Conditions and you feel that you are not able to comply with the obligations set out by them, or you do not want to be bound by them, you should not create an Investor account or continue to access the Kuflink Platform.

2. The Kuflink Platform and Kuflink Service

The Kuflink Platform is a direct lending platform. The Kuflink Service is a loan management service which enables Investors to lend to Borrowers via the Kuflink platform, either through individual loans (Select-Invest) or through a diversified loan portfolio (Auto-Invest) managed by Kuflink.
The money you lend via the platform will be used by Kuflink Borrowers to finance their property loans. Funds lent will be secured against UK property.
Each deal and investment product will have the pertinent information to allow you to make an informed decision when lending via the Platform.
As part of the Kuflink Service, we will:

For Select Invest, enter into Loan Agreements with Borrowers and then Novate those deals onto the Platform.
For Auto-Invest and IF-ISA investments, enter into Loan Agreements with Borrowers and then Novate those deals into the Pool, ensuring a diversified lending portfolio.

With regards to Auto-Invest and IF-ISA, we take steps to achieve diversification in line with Kuflink's Lending Policy.
Kuflink will manage your portfolio which may include re-allocating your funds and therefore diversifying your portfolio as we see fit in order to give you exposure to a range of Borrowers and Loan Parts as new opportunities arise.
Kuflink may add and remove P2P Loans to and from your P2P Portfolio from time to time and by accepting these Terms and Conditions, you authorise Kuflink to transact in P2P Loans on that basis.

Arrange to take a Legal Charge over the Borrowers' security.
Arrange for the Collections Team to manage and recover all outstanding debts owing, including appointing and managing Receivers should the need arise.
Perform Intermediary Services.

You cannot, and are not entitled to, engage with any Borrower, or undertake any action in your own name under a Lender Agreement unless we otherwise agree.
We may amend the Loan Conditions from time to time and will notify you of these changes. These changes will have no retrospective effect and will generally take effect after you have been notified.

3. Intermediary Services

Kuflink will operate and perform the following services:

assess Borrower creditworthiness;
prepare Loan Contracts for Borrowers;
prepare Lender Agreements for Lenders;
provide Borrowers with all the necessary contractual documentation and information (including pre-contractual and post-contractual);
receive payments from Borrowers (including any collections and enforcement activities) and distribute payments due to Investors;
operate a Secondary Market and facilitate the sale and transfer of Loan Parts should an Investor wish to sell;
manage Kuflink's Client Bank Account for and on behalf of Investors;
enforce and protect any rights that you and/or Kuflink might have under Lender Agreements;
respond to, and seek to resolve, all complaints or disputes;
amend or make variations to Loan Contracts, Security Documents and Guarantees when necessary;
manage the Auto-Invest and IF-ISA property loan portfolio on your behalf in line with our Lending Policy to ensure a diversified pool.

Kuflink may also instruct others to perform these Intermediary Services.
You authorise Kuflink to provide or arrange these Intermediary Services on your behalf.
When operating these Intermediary Services, Kuflink may collect business, financial and personal information from a Borrower, and from third parties, when they apply for a loan, but we cannot guarantee its accuracy. We do not accept responsibility or liability for any inaccurate information provided. We may update the information we publish if we are provided with new or additional information, but we have no obligation to do this.

4. How to become a Kuflink Investor

You will be required to register as an Investor through Kuflink's website. You will be required to provide personal details so that we can identify you. Our use of your personal details is subject to the terms of our Privacy Policy.
If you wish to lend money through Kuflink's P2P platform, you should go to the 'Invest ' page on our website and select one of our Investment Products. The Investment Product you select will determine how Kuflink manages your P2P investments and the terms on which you will lend to Kuflink Borrowers.
You must provide us with the account details of the bank account from which you intend to make and receive payments (your Nominated Bank Account). The Nominated Bank Account must be a current or savings account in the same name as the legal person who is registered with us.
The Nominated Bank Account must be provided by a UK authorised bank or building society and be held at a branch that is located in the United Kingdom.
We may accept or reject applications to create a Kuflink Account at our absolute discretion.
If we accept your application, we will provide you with your Kuflink Account details.
you want to add funds to your wallet you can do this through the Kuflink Platform.
You must not transfer your Investor Account to another person, or permit another person to use your Investor Account, without our specific prior written consent.
You must notify us immediately if you believe that an unauthorised person is using your Investor Account, or the security of your Investor Account has been or might be breached.
We can assume that all correspondence, orders, transfers and instructions made by reference to your username and password are made by you.
We can decline to act on your instructions or suspend your Investor Account if we suspect illegal or fraudulent activity or unauthorised use of your Investor Account.
Before you can start to lend to Borrowers you must top up your wallet. You confirm that you are authorised to make any transfers from your Nominated Bank Account to your wallet.
Funds sent by bank transfer or Direct Debit may take up to 5 working days to show in your wallet.
If you choose to top up by debit card (MangoPay / Stripe) you may be asked to provide us with evidence of the transaction’s origin at a later date.
By accepting Kuflink's investor terms and conditions you are also accepting MANGOPAY Terms and Conditions which you can find here: MANGOPAY Terms & Conditions
Card payments must always be made via debit card. Credit card payments are not acceptable.
Payments via aggregators such as Paypal or Curve are not acceptable.
You will also need to accept the Loan Conditions and Lender Agreement.
In regards AML/KYC Checks, by accepting Kuflink's investor terms and conditions you are also confirming that you have read, understand and accept Onfido Facial Scan Policy Release, and Onfido Privacy Policy and Onfido Terms of Service.

5. Investor Eligibility Criteria

To access and use the Kuflink Platform you must open an Investor Account. You must satisfy the following Investor Eligibility Criteria:

you must be an individual, limited liability partnership, limited company, public body or other legal entity;
if you are an individual, you must be at least 18 years old;
for our IF-ISA, you must be a permanent resident of the UK (excluding the Channel Islands and the Isle of Man) and you must qualify for an ISA under HMRC requirements;
if you are a UK limited company, you must be registered with Companies House and be incorporated within the UK (excluding the Channel Islands and the Isle of Man);
if you are a limited liability partnership, you must be registered with Companies House and have a permanent place of business in the UK (excluding the Channel Islands and the Isle of Man);
if you are a public body, you must be registered or formed with the relevant authority in the UK (excluding the Channel Islands and Isle of Man);
if you are an overseas company, you must provide a Certificate of Incorporation, appropriate proof of Registration and other relevant documents as we see fit;
you must have, and maintain, a valid bank or building society account in the UK (excluding the Channel Islands and the Isle of Man); and
you must provide us with all information and documents that we may reasonably request about you and your financial position.

Corporate Investor Terms and Conditions apply to Corporate Investors. These can be found under Part 5.
We must verify your identity in line with Know Your Customer and Anti-Money Laundering (AML) requirements. We outsource ID & AML checks to a third-party based in the UK.

We may also require further AML checks if you change your details on our system, use different top-up methods, do not use your unique reference whilst topping up via bank transfer, and/or a withdrawal is requested following a change to the account.
Adding funds to your wallet via MangoPay / Stripe and/or from a bank account which does not match your nominated bank account could lead to further AML checks.

In line with the FCA’s Policy Statement 19/14 which is effective from 9th December 2019, all lenders must pass an Appropriateness Test (APT) before they can invest on the Kuflink platform. The Appropriateness Test is a set of 6 questions, and lenders will have to answer them all correctly to demonstrate their knowledge of how the Kuflink peer-to-peer platform facilitates lending via the platform.

Lenders who have completed at least one investment cycle (that is, you have invested and have had your capital repaid) on the Kuflink platform on any product or invested at least twice for a period of a year;will automatically be classed as a Certified Sophisticated Investor by the Firm.

You must notify us when any of the information or details you have provided to us changes.
We may change the Investor Eligibility Criteria from time to time.
You may not be both an Investor and a Borrower unless you have obtained our specific prior written consent.
If you cease to satisfy the Investor Eligibility Criteria, we may close your Investor Account in accordance with the process set out in Clause 15.

6. Our agreement with you

These Investor Terms and Conditions define Kuflink's relationship with the Investor.
Kuflink does not guarantee that you will be able to register and lend through Kuflink's Platform.
The Lender Agreement defines your lending relationship with a Borrower. Kuflink has certain rights under the Lender Agreement to enable it to perform its role properly. The terms of the Lender Agreement will prevail in the event that there is any conflict between the Investor Terms and Conditions and the Lender Agreement.
We are not authorised to give investment advice and no information on the Kuflink Platform or on the Website amounts to any investment advice or a recommendation to lend money, so should not be treated as such. For financial advice, please speak to an authorised Independent Financial Advisor.
Kuflink will monitor and regulate the availability and functionality of the Kuflink Platform
Kuflink may:

withdraw Investment Deals if they are not fully funded by Investors;
withdraw Investment Deals if we consider it necessary to do so;
from time to time change the minimum or maximum amount that an Investor can lend to a single Borrower or in total across the Kuflink Platform. The minimum initial investment on the Kuflink Platform is £1000
repay invested capital and/or interest earlier than expected for a Deal or product.

7. Cancellation & Closure

Activation Date: The date on which you make your first investment in a Kuflink product: Select/IF-ISA, Auto/IF-ISA, Buy to Let/IF-ISA, SIPP Select or SIPP Auto.
Live Investment: This is a Live Deal on Select/IF-ISA, Auto/IF-ISA, Buy to Let/IF-ISA, SIPP Select or SIPP Auto. An Investment in a reserve deal is not a Live Investment until the reserve deal goes live. When the reserve deal goes live, then this will be a Live investment.
Live Investment date: The date you enter into a Live Investment Deal.
You have the right to cancel an investment if you are within 14 calendar days from the date of activation. That right applies for 14 calendar days following the activation date on which you enter into your first investments, and you may indicate you have decided to cancel by contacting the Operator via the Website.
If after the 14-day cooling-off period you make a subsequent investment into any products, you will lose your right to cancel.
If you are eligible to cancel your investment and would like to, contact us on 01474 334488 or email us at hello@kuflink.com.
Should you close your account at any time, Kuflink is unable to reactivate this and any cashback due after the point of closure is forfeited. Should you wish to use the Kuflink Platform in the future, you will need to open a new account.

8. Interest and Loan Repayments

The Lender Agreement governs the payment of capital and interest due to you from a Borrower.
Neither we nor any Kuflink contract guarantee any payments due to you from any Borrower under any Lender Agreement.
We will provide individual Investors with an annual statement of the interest to which they are entitled for personal tax purposes.
It is your responsibility to account for any tax imposed on you as a result of lending to Borrowers via Kuflink’s Platform. Neither we nor any part of Kuflink will deduct any tax from interest you receive or any proceeds from sale of Loan Parts sold on the Secondary Market, unless we are required to do so by law.
Interest and capital repayments paid from the borrower to Kuflink will be allocated accordingly to investors as soon as reasonably possible. Repayments are typically made within one working day of receipt from the borrower but can be up to 10 working days.
Kuflink reserves the right to fully or partially repay your invested capital and/or interest before your investment matures or is due to mature. This applies to Select/IF-ISA, Auto/IF-ISA, Buy to Let/IF-ISA, SIPP Select or SIPP Auto.
Kuflink’s model is to continue to pay Interest to its lenders even if the borrower is not paying Kuflink interest that is due, to ensure lender’s cashflow is not disrupted. In these instances, Kuflink keeps any default interest it may recover, as it pays any regular interest/compounded interest to lenders.
Kuflink reserves the right to stop paying interest accrued by lenders on all products where the Borrower does not pay interest that is due. In this event, Kuflink’s governing body may exercise the following discretion. Where the Borrower is charged and pays default interest on their account, the lender may be paid a percentage of the default interest proportionately, as a cashback into their wallet, as well as any regular interest/compounded interest.
By selecting deals with retained interest, you understand and agree in this instance, the rules of CASS 7 (Client Money) do not apply to these retained interest funds, and they are held in Kuflink Bridging Ltd.'s corporate account.

8a. Compound Interest

You can choose to compound interest on Select Invest deals. This action is non-reversible.
Compound Interest is based on a calculation that becomes payable upon a triggering event involving capital reduction. These cases include partial (pro-rata basis), full repayment or sale on the secondary market.
Interest calculation is compounded monthly on the first day of the following investment month.
By selecting compound interest, you will earn an enhanced interest rate, which is due when the deal matures (i.e. when the borrower repays or when recovered). You understand and agree in this instance, the rules of CASS 7 (Client Money) do not apply to these compound interest funds, and they are held in Kuflink Bridging Ltd.'s corporate account.
For Auto Invest or IFISA, this is based on a term longer than 1 year, interest will be compounded annually on the last day of the term unless you opt-out. Your compounded interest and capital will be payable into your wallet when the term of your investment ends.
In the event of a shortfall recovered from the borrower, Kuflink will take up to 5% of the capital invested as first loss.
You will be able to select which loan parts you want compound interest to apply to.
If a deal matures on any day other than the last day of the month, interest will be calculated up until the deal is repaid and compound interest will be calculated pro-rata.
Kuflink's Credit Committee will decide which deals compound interest will be available on.

In the event that there is a repayment shortfall from the borrower, the order of the payment priority is the following:

Firstly, funds will be allocated to repay the capital, on a proportional basis to all investors.
Thereafter, any remaining funds will be allocated to pay interest on a proportional basis to all investors.
(Nb. This is different to that of tiered loans as each tier of the loan will be paid capital and interest in order, i.e., Tier 1 capital repaid, and interest paid followed by Tier 2 capital and interest and so on (for the tiered loans T&Cs please read Part 7))
Kuflink reserves the right to suspend and/or end compound interest.
Kuflink reserves the right to remove the compound interest feature from the platform.

9. Auto-Invest term period

Your Auto-Invest term shall continue for the full duration of the term selected at the time of investment. Early exit from Auto-Invest investments is not permitted.
You will be notified by e-mail and/or phone when your Auto-Invest term is sixty (60) days away from maturing.
You will be notified again by e-mail and/or phone when your Auto-Invest term is thirty (30) days away from maturing.
During this sixty (60) day period, you shall have the option to re-term your investment.
Upon your confirmation of the re-term, the rate available on that day within the sixty (60) day period shall be secured.
Once the re-term has been confirmed and the interest rate is secured, you will not have the option to amend or cancel the interest rate or term upon the maturity of your existing investment.
The re-term and the interest rate shall take effect from the maturity date of your existing investment.
If we are unable to contact you and/or you do not take action by the maturity date of your Auto-Invest term, your capital and interest shall be automatically re-termed for an additional one-year period.
You have thirty (30) calendar days from the date your Auto-Invest term is renewed to reverse or modify the investment by contacting our Investor Relations team at 01474 334488 or by emailing hello@kuflink.com. This clause applies only if the investment was automatically re-termed due to your inaccessibility or failure to take action.
Unless instructed otherwise, once thirty (30) calendar days have lapsed, you will be tied in until the one-year Auto-Invest term matures.
If you invest in a term longer than 1 year, interest will be compounded annually on the last day of the term, unless you opt-out. Your compounded interest and capital will be payable into your wallet when the term of your investment ends.
If you opt-out, interest will be paid into your wallet on the anniversary of your investment, and it will be your responsibility to re-invest these monies. To opt-out, contact our Investor Relations team on hello@kuflink.com or call us on 01474 334 488.
The same automatic re-term rule applies to our IF-ISA product.

10. Withdrawing Funds

If a withdrawal request is made following a top up, Kuflink reserve the right to return funds to the originating account if the full amount is not invested and may therefore require proof of the incoming transaction. If the full amount is not invested and more than 2 withdrawals are requested, Kuflink reserve the right to charge the higher of £5.00 or 1% administration fee on this withdrawal. Kuflink also reserves the right to return funds to the originating account and ask for proof of incoming transaction if the withdrawal is being made following sales from the secondary market. Kuflink are aware that some Banks offer a % cashback incentive on purchases and we have seen our service being used to rotate funds for this purpose.
The minimum withdrawal amount from your Kuflink wallet to your Nominated Bank Account is £5.00. Only in the event that you have requested an account closure, and your total wallet balance is below £5.00, will you be able to withdraw less than the minimum amount.
If you wish to withdraw funds to a different Bank Account, you will need to make this new account your Nominated Bank Account. You can do this by getting in contact with one of our Investor Relations team either by calling 01474 334488 or e-mailing them athello@kuflink.com.
You can withdraw available funds that have not been lent or allocated for lending from your wallet.
Withdrawals can take up to 5 working days to be processed.
In line with internal procedures, you may be required to provide us with evidence of relevant top-up payments made via debit card (MangoPay / Stripe), transfer via bank accounts or where further AML checks are requested, before withdrawals can be processed.
Repayments of an ISA eligible Select-Invest deal: Should you withdraw these funds from your wallet, these will be removed from the tax wrapper and will no longer benefit from the ISA status.
Should you wish to liquidate an investment prior to the expiry of the loan, fees may be applied which are a minimum of 2% of the amount or £500, whichever is the higher. Liquidating investments forfeits any accrued interest. This is at Kuflink's discretion and must be approved by the Directors.

11. Missed payments and defaulted Loans

If a Borrower does not meet the terms of their loan and misses a payment due under their Loan Agreement, we will begin taking certain administrative steps to recover the missed payment(s). This may include contacting the Borrower, requesting further information from them, and attempting to recover the outstanding sums due from them. We will take the recovery action that we consider to be in the best interests of the relevant Investors so recovery can vary for different Loan Contracts. We may recover our reasonable costs as a priority from any amounts recovered as outlined in Clause 11.
If we are unable to recover the outstanding amount under a Loan Contract, we may appoint a Receiver who will seek to recover the outstanding sums plus additional Recovery Fees payable by the Borrower. The Recovery Fees will be paid in priority to any distributions to Investors (Clause 11).
If an Event of Default occurs, we may demand full repayment of the Total Amount Payable and all applicable fees and costs under the Loan Conditions from the Borrower and will repay each Investor their proportionate share of any funds successfully recovered.
We, or the Security Holder, may take such steps as we consider necessary or desirable in our absolute discretion to collect the outstanding debt including, without limitation, pursuing Guarantors (if applicable), enforcing Security, assigning the debt to a debt purchaser, and/or commencing formal legal action or insolvency proceedings through the courts. If further action is necessary, a Receiver Charge and third party legal and other costs may apply (as outlined in the Loan Contract), and the Borrower will be liable to pay all such applicable costs.
We, or the Security Holder, will act in a fair and equitable manner to achieve maximum recovery for all relevant Investors. This may include agreeing new payment terms or selling the debt to a third party.
We, or the Security Holder, may decide (in our absolute discretion) not to pursue the Borrower for non-payment or after an Event of Default has occurred on grounds of compassionate reasons, customer vulnerability, or if we consider it to be in the best commercial interests of all Investors to do so.
Only we, the Security Holder or the Receivers can engage with the Borrower to take steps to pursue the missed payments and recover outstanding sums on behalf of all Investors. You are not permitted to undertake any individual action or engage with the Borrower unless we agree otherwise.
We will keep you updated with the progress of efforts to collect missed payments and recover outstanding sums on defaulted Loans. You can view this status information via the Platform under Loan Updates.
Missed payments and defaults can cause delay in capital repayment and your funds may be tied in longer than expected. For further information, please see our Risk Statement.

12. Enforcement of Security

All loans are secured against UK property. The Security granted for each loan will operate to secure the repayment obligations of the Borrower and will be held by the Security Holder.

The Security Holder is Kuflink Security Trustees Ltd.

If the Security becomes enforceable, the Security Holder will act in the interests of all relevant Investors (unless otherwise required by law) and will make distributions to Investors in accordance with these Investor Terms and Conditions and the Lender Agreement. Neither we, nor the Security Holder, nor any person acting on our behalf will be liable for any loss suffered by any Investor unless the loss is caused by our or a third party’s own gross negligence or wilful misconduct.
Once the Security is enforced, any funds recovered by or on behalf of the Security Holder will be applied in order of priority, which is:

First: payment or reimbursement of all costs, expenses, losses or liabilities incurred by us (not including the Kuflink Finance No. 2 Ltd Stake, if applicable), the Security Holder (or any person acting on our or its behalf) and/or by any receiver or administrator (as outlined in the Loan Conditions) or, if the monies recovered do not cover the Total Amount Payable and all applicable costs and fees under the Loan Conditions, then part or all of Kuflink Finance No. 2 Ltd’s stake (please see Clause 20) in the deal will be applied towards this payment or reimbursement;
Second: payment of all amounts due to Investors for application by us and the Security Holder in accordance with these Investor Terms and Conditions and the relevant Lender Agreement conditions;
Third: payment or reimbursement of Kuflink Finance No. 2 Ltd Stake
Fourth: payment of the surplus (if any) to the Borrower or any other persons entitled to it by law.

The Security Holder is only required to make the payments referred to in clause 11 to Kuflink and this payment will constitute a complete discharge by the Security Holder of its obligations to make payment to the relevant Investors. Following receipt of this payment, Kuflink will make distributions to Investors in accordance with Clause 11.
Any monies received or recovered in respect of the Security will be applied in discharging the obligations of the Borrower. If there is more than one Loan with the benefit of the same Security, such monies will be applied proportionately by reference to the principal amounts owing to the relevant Investors under the secured Loans, and once all principal amounts are repaid, if further monies are received or recovered, these will be applied proportionately by reference to the Accrued Interest owing to the relevant Investors.
The enforceability of Security is subject to normal legal risks, challenges and limitations, and available proceeds post-enforcement may not be sufficient to discharge all of the obligations owed by the Borrower at that time to each Investor. It is also possible that the Borrower may have other creditors who have claims that may be recovered in priority to those of the Security Holder and the Investors.

13. Client Money

All monies received from you and held on your behalf in your wallets will be treated as Client Money in accordance with the FCA's Client Money Rules (CASS 7).
Kuflink has a Client Money Account with Natwest bank Plc for the purpose of safeguarding your funds. The Client Money Account is covered by a Client Money Acknowledgement Letter signed by the bank. You agree to the holding of your Client Money in this way.
No interest or income derived from the holding of Client Money in Kuflink’s Client Bank Accounts will be paid to you in respect of any funds that are held for you. You will not earn interest on funds held in your wallet.
If we were to cease trading, the funds held as Client Money would not be treated as our assets. Your funds would be classified as being held under a Statutory Trust and we would always seek to comply with all relevant obligations placed on us as a Trustee.
Lending through Kuflink’s Platform is not covered under the Financial Services Compensation Scheme. However, you may be entitled to compensation from the Financial Services Compensation Scheme in respect of any money held by us on your behalf if the bank or credit institution that is holding the money becomes insolvent. Further information is available at http://www.fscs.org.uk ..

14. Fees and Charges

We will not charge you any fees for creating an Investor Account or lending through the Kuflink Platform.
We may charge a borrower an Administration Fee and an Arrangement Fee. Investors will also see the term Servicing / Platform fee (the margin between what an investor receives and what a borrower pays). Investors are not entitled to these fees. If applicable, it will be included in the Fixed Interest Rate stated in the Key Contract Terms and be deducted by us from monthly payments made by the Borrower and retained by us in accordance with the Loan Conditions.
The Servicing Fee is charged to cover our role in undertaking the following Loan servicing activities:

arranging for the Loan Amount (minus any Loan Completion Fee) to be transferred to the Borrower at the start of the term of any Loan;
collecting and distributing payments from Borrowers which are due to Investors (including all collections and enforcement activity);
operating the Kuflink Client Bank Accounts; and
facilitating transfers of Loans or Loan Parts.

If we incur any fees or charges, such as disputed transaction fees, bank fees or payment processing charges in our provision of Intermediary Services to you or otherwise, we will make you aware of these and you may be required to reimburse us for all such costs we incur. To facilitate the reimbursement, you authorise us to access and withdraw funds from your Investor Account or collect the fees or charges from any payments due to you. We also reserve the right to request payment directly from you in relation to such incurred fees or charges.
We reserve the right to change or waive any applicable fees from time to time.
Should you become a debtor to Kuflink, we reserve the right to access and withdraw funds from your Investor Account or collect the fees or charges from any payments due to you. We also reserve the right to request payment directly from you in relation to such credit owed to us.
Should we need to liquidate the account for the reasons in Clause 16 below, fees will be applied. Liquidating investments this way forfeits any accrued interest. This fee will be a minimum of 2% of the amount or £500, whichever is higher. This is at Kuflink’s discretion and must be approved by Directors.

15. Amendments

We may make changes to these Investor Terms and Conditions from time to time without your consent for any of the following reasons:

to make these Investor Terms and Conditions clearer or easier to understand;
to make changes which benefit you;
to make changes to the products or services we offer or provide to you, to introduce new products or services or to withdraw products or services we no longer offer;
to change our existing products or services because of changes to technology, systems, processes or our business policies or procedures; or
to reflect changes in law, regulation, industry guidance or a decision of a court or by a regulator or ombudsman.

We will always try to give you at least 10 working days’ notice of an amendment to these Investor Terms and Conditions by notifying you of the proposed change through the Website or sending an email to your registered email address. However, this may not always be possible, and we may make changes on shorter notice periods.
Subject to Clause 15, if you do not agree with any changes that we make to these Investor Terms and Conditions, you may initiate the closure of your Investor Account. However, please note that the account closure will only be fully executed when your investments reach maturity. To begin the account closure process, please contact us via email (hello@kuflink.com) or by telephone 01474 334 488. By continuing to access and use the Kuflink Platform after any changes to these Investor Terms and Conditions, you accept and agree to be bound by the updated Investor Terms and Conditions.

16. Ceasing to be an Investor with Kuflink

If you no longer wish to be an Investor, then provided you have:

no Lender Agreements in force;
no outstanding amounts in your wallet;
no amounts owing and payable to us; and
no funds allocated for lending to any Borrower.

You can notify us at any time, and we will close your Investor Account.

If you wish to close your Investor Account but the following circumstances apply:

you are a party to a Lender Agreement which is in force;
you have funds which are allocated for lending to Borrowers; or
you owe any money to us, the Security Holder or any part of the Kuflink Group.

You must either (depending on the circumstances):

wait for the Active Loans to be repaid in full;
sell your Loan Parts on the Secondary Market, if possible;
wait for funds which are allocated for lending to become unallocated;
pay any and all money you owe to us or any part of the Kuflink Group.
We may give you notice that we intend to close your Investor Account at any time if:

you breach any term of these Investor Terms and Conditions, the Website Terms of Use or the Privacy Policy;
you breach any term of a Lender Agreement and fail to remedy the breach within any period notified to you or if no notification is provided, within a reasonable period;
you cease to be an eligible Investor because you do not satisfy the criteria;
you do not respond to our reasonable requests for information, or you fail to provide such information;
we suspect that you have committed or have been involved in fraud, money laundering or other criminal activities;
we discover that any information you have provided to us is materially incorrect, inaccurate, false or misleading;
you use the Kuflink Platform, or any information obtained or discovered through being an Investor with us to canvass or solicit any person from Kuflink;
you use the Kuflink Platform for a purpose for which the Kuflink Platform is not intended or other than as a direct lending platform to Borrowers;
you use the Kuflink Platform or the Website in an illegal, offensive or defamatory way or in any way which causes inconvenience or offence to other users;
you undertake action to contact or engage with a Borrower directly to pursue missed payments or recover outstanding sums;
you do not lend within a 12-month period through your Investor Account;
you misuse the Kuflink Platform in any other way; or
We believe that any action you undertake (or fail to take) will have an adverse effect on the Kuflink Platform or Kuflink's reputation.

Should we need to liquidate the account for the above reasons, fees will be applied. Liquidating investments this way forfeits any accrued interest. This fee will be a minimum of 2% of the amount or £500, whichever is higher. This is at Kuflink’s discretion and must be approved by Directors.

17. Your Liability to Us

You will be liable to us for any foreseeable loss or damage suffered by us as a result of:

any breach by you of these Investor Terms and Conditions, any Lender Agreement, or the Website Terms of Use;
your negligence or wilful default;
any fraudulent use by you of the Kuflink Platform; and
any and all misuse of your username, password, the Website, the Kuflink Platform or Investor Account.

You will not be liable to us for any loss or damage which is not foreseeable.

18. Our Liability to You

We, the Security Holder and any part of the Kuflink Group will not be liable to you for loss or damage (whether or not this is foreseeable) arising from any action taken (or not taken) in relation to maximising collections and recoveries, or from circumstances that are beyond our reasonable control.
Nothing in these Investor Terms and Conditions will exclude or limit our liability for death or personal injury caused by our negligence or fraud, or for any other liability that cannot lawfully be excluded or limited under applicable laws and regulation.

19. Conflicts of Interest

We will ensure that any potential conflicts of interest that might arise between a Borrower and an Investor, or different Investors, are identified and managed effectively in accordance with our Conflicts of Interest Policies.
We maintain a Conflict of Interest Register to monitor and identify any possible conflicts which may arise in association with lending to Borrowers via the Platform. This is in keeping with our Conflict of Interest Policies.

20. Complaints

We always try to offer the best service possible. However, if you are unhappy with any service or product offered by us, please contact us by email (hello@kuflink.com or by telephone on 01474 334 488).
We will endeavour to resolve your complaint as quickly and as fairly as possible, in line with the FCA guidelines.
More information on how to complain and how complaints are dealt with by us can be found on the Website or you can request it from our Investor Relations team.

21. Kuflink’s Stake

Kuflink Finance No. 2 Ltd may invest up to 5% of the Gross Loan Amount on Select-Invest deals alongside you. This is on a case-by-case basis.

22. Kuflink’s Additional First Loss Cover

All Select-Invest deals put on the Kuflink platform until the 30th June 2019, will have an additional first loss cover of 15% of the Gross Loan Amount (in addition to clause 21) in the event that Kuflink is unable to recover the total outstanding loan amount. This cover is provided by Kuflink Group Limited.
Kuflink's Additional First Loss cover will not apply from 1st July 2019 on any new deals that go on the platform.
Section 21 will continue to apply.

23. Investment Recovery Process in Auto Pool

Blended Investment Allocation Strategy:

Our Auto Pool employs a Blended Investment Allocation strategy, aiming to diversify investor portfolios across both current (active) and defaulted loans. This approach is designed to balance potential risks and rewards, offering exposure to both the stable returns of current and defaulted loans.

Return of Funds:

All invested funds, alongside accrued interest, are scheduled for return at the investment end date, regardless of the performance status of loans within the Auto Pool. This includes investments in both current (active) and defaulted loans, aiming to provide investors with returns that are commensurate with their investment rate, whilst acknowledging that all investments carry a degree of risk and returns cannot be guaranteed.

Recovery Efforts:

In the event of a loan default within the Auto Pool, we initiate recovery efforts aimed at maximising the return to investors. This may involve renegotiation with the borrower to return the loan to a performing status or the realisation of collateral.
Recovery proceeds, after covering all associated costs, will contribute to aiming to provide investors with returns that are commensurate with their investment rate, whilst acknowledging that all investments carry a degree of risk and returns cannot be guaranteed. The timing and success of these efforts may vary, influencing the overall performance of the Auto pool.

Risk Acknowledgment:

Investors participating in the Blended Investment Allocation strategy acknowledge the inherent risks, including the potential for partial or total loss of capital invested in defaulted loans. The diversified investment approach is designed to mitigate these risks by spreading investments across different loan types.
Investment Philosophy and Diversification:

This strategy leverages the diversified nature of investments within the Auto Pool to balance risk and reward. By investing in a mix of defaulted and current loans, investors can benefit from still receiving returns throughout the investment term despite the loan performance status.
Adverse Circumstances:

In the event of adverse circumstances affecting the recovery of funds from defaulted loans, we will undertake all reasonable efforts to release the invested funds. The return of these funds depends on the outcomes of the recovery processes and the recoverable value of the associated assets.

24. Reallocation of Funds in the Pool

With regards to Auto Invest and IFISA, we take steps to achieve diversification.
Kuflink will manage your portfolio which may include re-allocating your funds and therefore diversifying your portfolio as we see fit in order to give you exposure to a range of Borrowers and Loans parts as new opportunities arise.
There will be specific trigger events, such as new loans entering the pool and repayment of loans, which will trigger a reallocation of your funds across the loans.
However, if you have funds in a defaulted loan or loans, these funds will stay within the loan(s) on a triggered event, until the borrower agrees to new terms or funds are repaid.

25. Oversubscription of the Pool/Reserve Pool

This is where the invested amount in the Pool is larger than the total amount allocated to loans.
This can happen if the total loan amount reduces due to a loan repayment. If the pool funding has exceeded the total amount allocated to loans, the outstanding unallocated funds relating to P2P agreements will be held in the Kuflink client account whilst waiting to be allocated to a new loan in the pool (when one becomes available).
Your account will show the unallocated funds you have waiting to be deployed per investment.
Unallocated funds are periodically redistributed across the entire pool.
These funds cannot be withdrawn as they are committed to your investment in the Pool.
You will continue to be paid interest on the original investment amount.
Kuflink reserves the right to return unallocated capital to you and not to pay further interest on these funds

26. Calculation of Interest

Interest is calculated from midnight to midnight, meaning that investments starting from 00:00:00 to 23:59:59 will all earn one day of interest the following day. The basic time unit for interest calculation is the month, and the daily interest rate is defined as the monthly rate divided by the number of days in that month. In simple interest calculations, annual rates are transformed to monthly by dividing by 12. Unless stated otherwise, the simple interest calculation is applied. Simple interest between two dates is calculated in three parts added together. The first part is the investment days in the first month, the second part is the number of whole months, and the third part is the number of days in the final month.
Compound: Compound interest is either compounded on a monthly basis or on an annual basis. To calculate the interest on an investment on compound interest between two dates in general, there will be three parts multiplied together: the first part calculated as simple interest, the compounded part and a final part calculated as simple interest. The monthly compounded interest between two dates is calculated in three parts multiplied together. The first part is the investment days in the first month calculated using simple interest, the second part is the number of full months compounded, and the third part is the number of days in the final month calculated using simple interest. Annually compounded interest between two dates is calculated in three parts multiplied together. The first part is the investment period, calculated as simple interest, up to the first anniversary. The second part is compounded based on the number of whole years, and the third part is calculated using simple interest from the last anniversary.
Partial payments: In the case that Kuflink receives a partial payment from a borrower on a select deal the calculations follow the steps: The amount of capital that each investor will receive is proportionate to the invested amount divided by the loan amount. For monthly interest, the interest is paid on the proportion of capital that is returned for that month. For compounded interest, the interest paid is calculated from the start date of the compounded interest rate.
Reserve cashback: Whereas interest is only applicable to live deals, should an investor pledge funds in a reserve deal before it has become a live deal a reserve cashback will be paid from the date of the pledge until the live date. The calculation follows the simple interest calculation as outlined above.

27. Other Miscellaneous Terms

Kuflink reserves the right to contact you via any means of communication regarding urgent or important matters relating to your account and/or investment.
All commissions and cashbacks are inclusive of any tax that may be applicable.
All commission and cashback payment dates are estimates and cannot be guaranteed.
If any provision of our Terms and Conditions is found to be illegal, invalid or unenforceable by any court of competent jurisdiction, this will not affect the validity and enforceability of the remaining provisions.
Our rights under any of our Terms and Conditions may be exercised as often as necessary, are cumulative and not exclusive of any rights or remedies provided by law. Delay in the exercise of any right granted to us in any of our Terms and Conditions is not a waiver of that right.
Our Terms and Conditions are governed by and construed in accordance with English law. If any dispute (whether contractual or non-contractual) arises out of, or in connection with, these Investor Terms and Conditions, we and the Investor submit to the non-exclusive jurisdiction of the English Courts.

PART 2 – IF-ISA TERMS AND CONDITIONS

1. Definitions and Interpretation

You must read and accept these Terms and Conditions in order to open your Innovative Finance ISA account with Kuflink. You must also agree to the terms of our Declaration Form.
Please note that these Terms and Conditions use a number of capitalised terms that are defined below, as well as in the glossary.
The following terms are defined for the purposes of these Terms and Conditions as follows:

HMRC refers to Her Majesty's Revenue & Customs;
IF-ISA refers to the type of ISA known as the Innovative Finance ISA, which is permitted under the ISA Regulations to invest (subject to conditions) in loans entered into via a platform, operated by a person authorised and regulated by the FCA under article 36H of the Regulated Activities Order;
ISA means an Individual Savings Account, whose operation and promotion are governed by the ISA Regulations;
ISA Manager refers to the entity who is charged with the duty to manage your ISA under these Terms and Conditions;
ISA Regulations means the Individual Savings Accounts Regulations 1998, as amended;
We, us, our or Kuflink all refer to Kuflink Limited, which operates the Platform and under these Terms and Conditions provides the service of ISA Manager.

2. Your Innovative Finance ISA

Kuflink will be your ISA Manager.
The ISA manager will satisfy himself that any person to whom he delegates any of his functions or responsibilities under the terms agreed with the investor is competent to carry out those functions and responsibilities.
Under these Terms and Conditions, your ISA will be classified and treated for all purposes as an IF-ISA.
To open an IF-ISA, we must be in receipt of a completed ISA application, together with your payment for any amount between our stated minimum subscription up to the maximum annual subscription allowance for an IF-ISA.
You may subscribe to an ISA in any UK tax year (i.e., period starting on 6 April of one year and ending 5 April of the following year) for which you are:

minimum 18 years of age; and either
resident in the United Kingdom; or,
If you are a non-UK resident, you or your spouse perform duties of a Crown employee, such as being a member of the UK armed forces, a civil servant or a diplomat. This will only apply if these duties are treated as being performed in the UK.

Your application for an IF-ISA is specifically related and restricted to the UK tax year in which you make it. Kuflink will continue to manage your IF-ISA in successive years unless you transfer your holdings to an alternative provider.
You will be required to make relevant representations to us in relation to your tax status at the point of application or transfer, providing reliance to Kuflink until such time that you notify us of a change in circumstance.
If you are transferring a current year's subscription this can be transferred in its entirety or partially, however each transaction must be a minimum of £500.
Your IF-ISA cannot be used as security for a loan, nor can beneficial ownership be assigned to a third party.
Any documents evidencing title to the loans which form part of your IF-ISA, will be retained by us under the terms of your IF-ISA Agreement.
We will notify you if, due to failure on your part to satisfy the provisions of the ISA Regulations, your IF-ISA has ceased, or will cease to qualify for relevant tax benefits or treatments to which it would otherwise be entitled. If the failure cannot be corrected, or if you fail to take any action requested by us in writing within a reasonable period of time, we may close your IF-ISA following written notice.
In order to enter into an IF-ISA agreement, you will need to be eligible to invest with Kuflink subject to Part 1 Clause 5, provide Kuflink with your National Insurance Number and information regarding the source of funds if requested by Kuflink.
You must inform us immediately if any declarations or confirmations you have made about your eligibility to hold an ISA no longer apply.
Select Invest IF-ISA investments can pay interest on maturity or on a monthly basis.

3. Payments and Withdrawals

Subscriptions can be made into your IF-ISA by directing monies, which have already been advanced to your wallet, into an IF-ISA investment.
Each subscription must be at least £500.
Kuflink does not have an “auto-invest” function.
Funds you hold in your wallet must be invested manually into IF-ISA loans, with each subscription being treated as a separate investment which will attract its own respective term.
All subscriptions must be in cleared Sterling funds transferred from a UK Bank or Building Society account bearing your name.
The maximum you can subscribe to the Kuflink IF-ISA is the maximum ISA limit per tax year as prescribed in the ISA Regulations. Amounts subscribed in excess of this limit will not qualify but will be invested into Auto-Invest for the same term. It is your personal responsibility to ensure that you do not exceed your ISA subscription limit for the tax year.
Please note that all subscriptions, subject to cancellation rights under Part 2 Clause 4 are irrevocable.
If you invest in a term longer than 1 year, interest will be compounded annually on the last day of the year term, unless you opt-out. Your compounded interest and capital will be repaid into your wallet when the term of your investment ends.
If you opt-out, interest will be paid into your wallet on the anniversary of your investment, and it will be your responsibility to re-invest these monies. To opt-out, contact our Investor Relations team on hello@kuflink.com or call us on 01474 334 488.
Should you withdraw funds from your wallet that have been repaid from a Select-Invest ISA eligible deal, these will be removed from the tax wrapper and will no longer benefit from the ISA status.

4. Cancellation

If you wish to cancel your IF-ISA, you must be eligible to do so in line with Part 1 Clause 7.
If you are eligible to cancel your IF-ISA, you must notify Kuflink of this within 14 calendar days of the date on which we notify you that your IF-ISA has been opened. You can do this by phoning us on 01474 334488 or emailing us at hello@kuflink.com.

If you cancel your IF-ISA investment during this 14-day time period, no fee would be levied. If you request the liquidation of your IF-ISA investment after this cancellation period ends, you will be charged a fee.

Cancellation fee: £500 or 2% of the amount invested in the IF-ISA investment and forfeiture of any accrued interest.

5. Account closure

If you wish to close your IF-ISA, you can inform us by phoning us on 01474 334 488 or emailing us at hello@kuflink.com.
We may close your IF-ISA with immediate written notice to you if we are directed to close it by HMRC.

6. Death

In the event of an IF-ISA investor’s passing on, or after the 6 April 2018, the ISA will turn into a “Continuing Account of a Deceased Investor”. This change results in the top-up and investment functions being disabled and no further investments can be made.
Any IF-ISA investments in existence on the date of death will continue to be bound by their respective Article 36H agreements, and general terms and conditions of the platform will also continue to apply.
Kuflink will require appropriate documentation to be submitted by the Executor(s) or Administrator(s) of the Estate to validate their authority prior to Kuflink releasing valuations for Probate or taking instructions. Standard documentation requirements include the death certificate, the Will, ID for the Executor(s) / Administrator(s) and once obtained, Grant of Probate.
If, after a period of 3 years, the administration of Estate is ongoing and the ISA has not been closed, it will cease to be a “Continuing Account of a Deceased Investor”. Under current HMRC rules Kuflink must, on the next working day following the third anniversary of the deceased’s death, remove the ISA wrapper from the investment and will from then on be treated as an ‘auto-invest’ investment.

7. Additional Permitted Subscriptions (APS)

Additional Permitted Subscriptions are subject to HMRC rules.
Kuflink can accept Additional Permitted Subscriptions, including multiple APS transfers from other providers.

8. Bankruptcy

In the event Kuflink is notified of the bankruptcy of an investor, current HMRC rules require the closure of the IF-ISA with effect from the date on which the trustee’s appointment takes effect (or, in the case of the Official Receiver, the date on which they become trustee).
Kuflink will require appropriate documentation to be submitted to validate the bankruptcy and the trustee’s appointment.

9. Transfers in

You may transfer money into your Kuflink IF-ISA from existing ISAs you hold with another provider. We will require a completed and signed Transfer Authority Form to be submitted by you along with a completed Transfer History Form from your current ISA Provider. You can access the form by logging into your Kuflink account. On receipt, Kuflink will then administer the transfer in accordance with your instructions and ISA regulations, but funds cannot be Invested until the Transfer History Form has been received by us from your current ISA provider.

The transfer process will begin on the date of receipt of the transfer request or the date you stipulate for us to begin the transfer process, whichever is later. We will then send the transfer request to your existing ISA provider, within 5 business days of receipt and administer the process on your behalf until the transfer is complete.
You will not be charged by Kuflink for a transfer of an ISA from another ISA provider.

10. Transfers out

You can only transfer your Kuflink IF-ISA at maturity of the term of your investment.
You cannot liquidate loans within an IF-ISA early to fund a transfer out.
Kuflink charges an administration fee of £0 for transferring your IF-ISA to another provider (Reduced from £35 on 16/10/2023 until further notice).
If you are transferring a current year's subscription this can be transferred in its entirety or partially, however each transaction must be a minimum of £500.
You will need to arrange for an ISA transfer request to be submitted via the receiving ISA provider. Transfer requests will be processed, and funds released in accordance with ISA regulation.
A return of ISA funds that is not a valid transfer under ISA regulation will result in the loss of tax status.
ISA Transfer Authority Forms are valid for 6 months after the day they have been signed by the applicant.

11. Term period

Your Auto/Buy to Let IF-ISA term will last for whichever term you have chosen at the outset.
For Select IF-ISA this will be detailed in the lending case of each deal you invest into.
Each IF-ISA investment has its own individual term as chosen by you at the point of subscription. You cannot align the term of a subscription with any previous IF-ISA investment you may have made.
There is no early exit for Auto/Buy to Let IF-ISA investments.
For Select IF-ISA deals, you may be able to list them on the secondary market for early exit should you wish to.
Listing your Loan Part on the Secondary Market is not a guarantee that you will find a buyer and all loans sold on the Secondary Market are sold at the same price and are available to everyone in the open market.
If you are invested into an Auto/Buy to Let IF-ISA you will be notified by e-mail and/or phone when your IF-ISA is sixty (60) days away from maturing.
You will be notified again by e-mail and/or phone when your Auto/Buy to Let IF-ISA is thirty (30) days away from maturing.
If we are unable to contact you and/or you do not take action by the maturity date of your Auto/Buy to Let IF-ISA term, your capital and interest shall be automatically re-termed for an additional one-year period.
You have thirty (30) calendar days from the date your Auto/Buy to Let IF-ISA term is renewed to reverse or modify the investment by contacting our Investor Relations team at 01474 334488 or by emailing hello@kuflink.com. This clause applies only if the investment was automatically re-termed due to your inaccessibility or failure to take action.
Unless instructed otherwise, once thirty (30) calendar days have lapsed, you will be tied in until the one-year Auto/Buy to Let loan term matures.
For Select IF-ISA loans, you will not be notified of maturity of these loans in advance of the maturity date.

12. ISA Regulations

The management of your IF-ISA will be subject to the ISA Regulations. Any changes made by HMRC to the ISA Regulations that affect these terms will apply as soon as they come into effect.
Upon notification from HMRC or otherwise the firm identifies that your investment is not eligible for tax free investment either because:
investments held in the account are non-qualifying
investor is not a qualifying individual
subscription to the account is invalid
Kuflink will inform the investor of the findings and immediately move the investment made into Auto IF-ISA to Auto investment, investment made into Buy to Let IF-ISA to Buy to Let investment, and investment made into Select IF-ISA to normal Select investment. This could mean tax free income reported for current and previous years might be incorrect and may affect the investor’s tax position in the current and previous years.

PART 3 – RESERVE DEALS TERMS AND CONDITIONS

1. Reserve deals

These are deals where the Investor has the opportunity to reserve their stake in the deal before it goes live on Kuflink’s Investor platform.
Interest will be accrued daily whilst the deal is on Reserve and will be paid to you as a cashback once the deal goes live.
Should you withdraw your investment prior to the deal going live, you will not be eligible for interest accrued during the reserve period.
Should the deal not go live (for any reason) the interest accrued will not be payable, unless the deal has been available as a Reserve Deal for 28 days or more.
For reserved funds in a Select Invest IF-ISA, should the deal not go live (for any reason) your money will be returned to your ISA wallet and will remain in the ISA wrapper all the time it remains there. Any interest accrued will not be payable, unless the deal has been available as a Reserve Deal for 28 days or more.
If the deal does not go live (for any reason), and has been available as a Reserve Deal for 28 days or more, the Investor will be paid interest as a cashback to the Investor's General Wallet. This will be calculated based on the length of the Investor's reserved stake, irrespective of the length of time the deal has spent on Reserve.
All commissions and cashbacks are inclusive of any tax that may be applicable.

PART 4 – SECONDARY MARKET TERMS AND CONDITIONS

1. General Provisions

All transactions via the Secondary Market are subject to review and approval by Kuflink and adherence to these Terms and Conditions. Kuflink reserves the right to refuse the sale of any investment without prior notice.
Investors are permitted to offer their Loan Part for sale at the original purchase value only.
You may only sell your total investment in one opportunity. Kuflink does not permit part sales. If you have made multiple separate investments into one opportunity, you may sell one or more of these investments individually.
There is no 14-day cooling off period applicable for transactions made via the Secondary Market.
Information regarding individual opportunities available for purchase on the Secondary Market is available via the platform under Loan Updates and is accessible in full to all registered Kuflink Investors.

2. Applicable Fees

Transactions will be subject to an arrangement fee of 1% of the Loan Part value, payable to Kuflink by the seller upon completion of the sale. This fee will be automatically deducted from the sale proceeds.
Kuflink may waive their arrangement fee during promotional periods.
There are no fees payable by the purchaser.
All transactions are subject to invested parties having sufficient funds available in their wallet.

3. Sale of your Loan Part

Listing your Loan Part on the Secondary Market does not guarantee that you will find a buyer. An expression of interest is not legally binding and does not constitute a sale.
Sales via the Secondary Market are considered final and legally binding once contracts have been exchanged between the seller and purchaser.
Once a sale is complete, the initial Investor forfeits all rights to future returns on that investment and these rights pass, in full, to the purchaser.
The seller is not liable or responsible for the overall performance of any loan, and as with all investments, your capital is at risk.

4. Restrictions

Investors are not permitted to sell during the first month or the last month of any loan term.
Investors are not permitted to sell their investment in any loan which is in default, in arrears, or where the loan status is "Pending Status Update".
Employees of Kuflink and their close family/ friends are not permitted to sell their investments within the first 48 hours of the Secondary Market opening for any particular opportunity, in line with our Conflict-of-Interest Policy.
Cashback incentives are not eligible on Secondary Market transactions.
Investors are permitted to offer their Loan Part for sale at the original purchase value only.

5. Eligibility Criteria

To access or use the Market, you must have made a Minimum Investment with Kuflink as defined by Kuflink from time to time ("Minimum Investment").
You must have been or currently be an investor with Kuflink ("Investor Status").

6. Investment Requirement

The Minimum Investment is a prerequisite to gain access to the Market. The specific amount or value of the Minimum Investment is at Kuflink's sole discretion.
Kuflink reserves the right to change the amount or value of the MinimumInvestment at any time without prior notice. The revised Minimum Investment will become effective at the time of the change.

7. Investor Status

The Investor Status is determined based on your history and current status of investments with Kuflink.
Kuflink reserves the right to verify your Investor Status at any time and deny or revoke your access to the Market if you do not meet the Investor Status.

8. Secondary Market Access

Upon meeting the Minimum Investment and Investor Status requirements, Kuflink may grant you access to the Market.
Kuflink reserves the right to deny or revoke your access to the Market at any time, for any reason, including but not limited to, failure to meet the Minimum Investment or Investor Status requirements.

PART 5 – CORPORATE INVESTOR TERMS AND CONDITIONS

Introduction

Before you create a Corporate Investor Account, you must read these Terms and Conditions.
These Terms and Conditions define:

Kuflink Platform and Kuflink Service
Which companies can become Corporate Investor’s on the Platform.
Corporate Money

These Corporate Terms and Conditions are supplementary to Kuflink’s General Investor Terms and Conditions. These Corporate Investor Terms and Conditions should be read alongside other important Kuflink documents, such as:

General Investor Terms and Conditions.
FAQs.
User Guide (including Website Terms of Use).
Risk Statements.
Lender Agreement; and
Privacy Policy.

You can always access and download the latest version of these documents and the Investor Terms and Conditions from the Kuflink website, but you should also keep a copy for safekeeping.
In these Terms and Conditions "Kuflink", "we", "us" or "our" means Kuflink Ltd. Kuflink is a limited company registered in England and Wales (company number 08460508). Our registered office address is 21 West Street, Gravesend, DA11 0BF. We are authorised and regulated by the Financial Conduct Authority (reference number 724890). In these Terms and Conditions "You" or "your" means the Investor.
By opening and using a Corporate Investor Account, you agree to be bound by these Terms and Conditions. You agree to use the Kuflink Platform for the purposes defined, and in accordance with, the Terms and Conditions.
If you have read these Corporate Investor Terms and Conditions and you feel that you are not able to comply with the obligations set out by them, or you do not want to be bound by them, you should not create an Investor account or continue to access the Kuflink Platform.

The Kuflink Platform and Kuflink Service

The Kuflink Platform is a direct lending platform. The Kuflink Service is a loan management service which enables Investors to lend to Borrowers via the Kuflink platform, either through individual loans (Select-Invest) or through a diversified loan portfolio (Auto-Invest) managed by Kuflink.
The money you lend via the platform will be used by Kuflink Borrowers to finance their property loans. Funds lent will be secured against UK property.
Each deal and investment product will have the pertinent information to allow you to make an informed decision when lending via the Platform.
As part of the Kuflink Service, we will:

For Select Invest, enter into Loan Agreements with Borrowers and then Novate those deals onto the Platform.
For Auto-Invest, enter into Loan Agreements with Borrowers and then Novate those deals into the Pool, ensuring a diversified lending portfolio.

With regards to Auto-Invest, we take steps to achieve diversification in line with Kuflink's Lending Policy.
Kuflink will manage your portfolio which may include re-allocating your funds and therefore diversifying your portfolio as we see fit in order to give you exposure to a range of Borrowers and Loan Parts as new opportunities arise.
Kuflink may add and remove P2P Loans to and from your P2P Portfolio from time to time and by accepting these Terms and Conditions, you authorise Kuflink to transact in P2P Loans on that basis.

Arrange to take a Legal Charge over the Borrowers' security.
Arrange for the Collections Team to manage and recover all outstanding debts owing, including appointing and managing Receivers should the need arise.
Perform Intermediary Services.

You cannot, and are not entitled to, engage with any Borrower, or undertake any action in your own name under a Lender Agreement unless we otherwise agree.
We may amend the Loan Conditions from time to time and will notify you of these changes. These changes will have no retrospective effect and will generally take effect after you have been notified.

Corporate Investor Eligibility Criteria

To access and use the Kuflink Platform you must open a Corporate Investor Account. You must satisfy the following Investor Eligibility Criteria:

You must be a limited liability partnership, limited company, public body or other legal entity.
if you are a UK limited company, you must be registered with Companies House and be incorporated within the UK (excluding the Channel Islands and the Isle of Man).
if you are a limited liability partnership, you must be registered with Companies House and have a permanent place of business in the UK (excluding the Channel Islands and the Isle of Man).
if you are a public body, you must be registered or formed with the relevant authority in the UK (excluding the Channel Islands and Isle of Man).
if you are an overseas company, you must provide a Certificate of Incorporation, appropriate proof of Registration and other relevant documents as we see fit.
you must have, and maintain, a valid bank or building society account in the UK (excluding the Channel Islands and the Isle of Man); and
you must provide us with all information and documents that we may reasonably request about you and your financial position.
you must provide a signed Ultimate Beneficial Ownership Declaration Form for the company

We must verify the legal representative’s identity in line with Know Your Customer and Anti-Money Laundering (AML) requirements. We outsource ID & AML checks to a third-party based in the UK.
You must notify us when any of the information or details you have provided to us changes.
We may change the Corporate Investor Eligibility Criteria from time to time.
You may not be both an Investor and a Borrower unless you have obtained our specific prior written consent.
If you cease to satisfy the Investor Eligibility Criteria, we may close your Investor Account.

Corporate Money

Kuflink has a separate Business Corporate Account for Corporate monies.
You understand and agree that as a Corporate Investor the rules of CASS 7 (Client Money) do not apply to any funds held in Kuflink’s Business Corporate Account on the Corporate’s behalf.
No interest or income derived from the holding of Corporate Money in Kuflink’s Business Corporate Bank Account will be paid to you in respect of any funds that are held for you. You will not earn interest on funds held in your wallet.
However, from 21st April 2022 - corporate funds will be treated as Client money under CASS 7 (Client money) Rules.

PART 6 – BEREAVEMENT PROCESS TERMS AND CONDITIONS

When an investor dies, there are a variety of documents that Kuflink will need to be in receipt of.

1. Documents required

Certified copy of the Will or for Intestate cases: a letter from an immediate family member stating their relationship and confirming their need to access financial information to apply for ‘Letters of Administration’.
Certified copy of the Death Certificate
Grant of Probate (if available at the time).
Certified copy of two forms of Photo ID of the executor(s)/executrix(es)
Bereavement Instructions
Certified copy of the Death Certificate
Kuflink will undertake AML/KYC checks on the executor(s)/executrix(es) to the Will of the deceased investor prior to any funds being released from the account.

2. Options for funds held in account

Wallet Funds

In the event that the deceased Investor has funds held in his/her wallet, these funds will be sent to the nominated bank account held on account once Kuflink are satisfied with all documentation provided. If this bank account is no longer active, executor/executrix will need to provide bank account details (Statement) to a member of the Investor Relations team. All funds will then be sent to this bank account once verified.

Live Investments

In the case of live investments, there are 3 options:

1. Let all investments mature naturally. On maturity, funds will be returned to the wallet and then returned to the nominated bank account.

2. Sell Select Invest loan parts via Kuflink’s Secondary Market. There is no guarantee that loan parts will be sold. Any sale is subject to Kuflink’s Secondary market criteria (see Part 4 section 4)

3. Liquidate portfolio with Kuflink, which is subject to Kuflink Director’s discretion, and fees will be applied as below. Liquidating investments this way forfeits any accrued interest.

Please note that Select/Select IF-ISA investments in default cannot be liquidated. Funds will only be repaid once the loan redeems. No fees will apply.

IF ISA Investment

If the deceased investor holds an IF-ISA investment, Kuflink can arrange for a surviving spouse or civil partner’s yearly ISA subscription be increased by the value of the deceased’s IF-ISA investment with Kuflink, but they will also need to have a Kuflink IF-ISA investment.

An Additional permitted subscription (APS) form will be required, and these are subject to HMRC rules. Kuflink reserve the right to freeze the deceased investors account until satisfied with all documentation provided.

3. Fees

If you are going to sell the deceased Investors loan parts on Kuflink’s secondary market, there is a 1% seller’s fee. Sales on the Secondary market are subject to Kuflink’s Secondary market criteria. (See Part 4 section 4)

If live investments are to be liquidated from a deceased investor’s account, Kuflink will charge a fee for this. This fee will be 2% of the amount or £500, whichever is higher. This is at Kuflink’s discretion and must be approved by Directors. Liquidating investments this way forfeits any accrued interest.

PART 7 – LOAN TIERS ORDER OF PRIORITY TERMS AND CONDITIONS

Introduction

Essentially Kuflink’s Loan Tiers are risk bands that are measured by Loan to Value. We will be offering multiple Tiers on certain Select Invest loans.

Kuflink splits a Borrower’s loan requirements into multiple tiers, creating Loan to Values for each.

Example

Whole Loan 75% LTV

Tier No	LTV	Order of Priority
Tier 1	22%	1st
Tier 2	46%	2nd
Tier 3	62%	3rd
Tier 4	75%	4th

LTVs for tiered loans may vary from the above example so please ensure you check what LTV applies to the tier and loan that you are looking to invest in.

Each Tiered Loan will have a different Interest Rate depending on the LTV that applies to it. For example, by accepting Tier 4, as above, you are accepting a higher LTV risk and you are accepting being paid last, as listed above in the order of priority, all in consideration for a higher Interest rate.

With Tiered Loans, the lender not only gets to choose which loans they want to invest in but also the level of risk within that loan.

Each Loan Tier will then have a different return rate depending on the LTV bracket that applies to it – the higher the LTV risk you are willing to accept, the higher rate of return you could earn.

Order of Priority when capital and interest is Repaid.

Whilst the whole loan is secured by way of a 1st or 2nd Legal Charge over the security property, the Tiers are ordered by Priority. So, in the above example, Lenders who have lent funds in Tier 1 will be repaid capital first and then the interest, then Tier 2, then Tier 3 and then Tier 4. When Lending in Tiered loans, you and all Lenders in all the Tiered Loans of the security charge are accepting the order of priority, linked to LTVs, when you invest.

PART 8-Wind-down Planning

We continually monitor our business model to ensure we can best serve all Investors and borrowers, should circumstances arise where we can no longer operate the Kuflink platform and must wind-down the business, we will ensure the wind-down happens in an orderly fashion and with as little impact to our customers as possible.

You can find more Information about our wind down plan here: https://kb.kuflink.com/knowledge/what-are-kuflinks-wind-down-arrangements
If we Invoke our wind-down plan and reasonably believe that it would be in your best Interests to sell your loans to a third party, you acknowledge that we may sell the loans for less than you would have received had you held your loans until the end of the term.

If we Invoke our wind-down plan, you acknowledge that if you are invested in loans that pay periodic interest (even if you are invested in a Tiered loan), this process will cease and convert to paying any outstanding interest when the loan is settled in full by the borrower or a settlement reached by the third party. Capital will be repaid first followed by the interest if we have received sufficient funds to pay this.
This is different to that of tiered loans as each tier of the loan will be paid capital and interest in order, i.e., Tier 1 capital repaid, and interest paid followed by Tier 2 capital and interest and so on (for the tiered loans T&Cs please read Part 7)

PART 9 - Duty of Confidentiality

When making investments, the information on each lending case is to be used solely by investors for the purpose of assessing whether or not to participate in a Loan. The content of the Website is not permitted to be used for any other purpose.
Every investor accepts that it owes a duty of confidentiality to all Kuflink Group Companies and may not disclose any of the following information to a third party.

Internal operating systems and procedures used by Kuflink
Any details provided on the website/P2P Platform in relation to borrowers/Security properties.

Every investor agrees not to use the Website, or any information contained in it for the purpose of soliciting any person (whether Borrower or otherwise) away from Kuflink.
It is acknowledged by Kuflink that the duty of confidentiality owed by investors in relation to the points above do not extend to information previously held by investors or that is otherwise in the public domain.
Every investor is responsible for maintaining the security of its Username and password for use of the Website. Investors must notify Kuflink immediately if there is any unauthorised use of passwords/Usernames/Emails or any other security breach of which you become aware.
Kuflink shall be entitled to take any action necessary to comply fully with the law and any notices received from government agencies including but not limited to any request to provide information about investors and/or Borrowers under money laundering, fraud or anti-terrorism regulations.

PART 10 - SIPP Terms and Conditions

These T&Cs are in addition to those applicable to the Platform. These should be read in conjunction with the overall Terms and Conditions, Terms of use and other legal information available on the website. The SIPP is a Registered Pension Scheme approved by HMRC and governed by a Trust Deed and Rules and any subsequent deeds amending these, which sets out how we must operate the scheme. The Agreement, together with the Deed and Rules, sets out the basis on which your Membership of the SIPP shall operate. By joining the SIPP, you agree that you and your Dependants and Beneficiaries shall be bound by the Deed and Rules, these T&Cs and all other parts of the Agreement.
If you wish to cancel your SIPP Investment, you must be eligible to do so in line with Part 1 Clause 7.

If you are eligible to cancel your SIPP Investment, you must notify Kuflink of this within 14 calendar days of the date on which we notify you that your SIPP has been opened. You can do this by phoning us on 01474 334488 or emailing us at hello@kuflink.com
If you choose to cancel your SIPP Investment within the 14-day cancellation period, you will remain eligible to open a SIPP with another SIPP Provider or us in the future.
If you cancel your SIPP investment during this 14-day time period, no fee would be levied. If you request the liquidation of your SIPP investment after this cancellation period ends, you will be charged a fee.
Cancellation fee: £500 or 2% of the amount invested in the SIPP investment and forfeiture of any accrued interest.

Glossary

BORROWER: A Borrower under a Loan Contract or, as applicable, a person who is applying for borrowing from Kuflink Bridging Ltd.
BORROWER TERMS AND CONDITIONS: The Terms and Conditions that govern the relationship between a Borrower and Kuflink, as amended or replaced from time to time.
CLIENT MONEY: money that is designated as client money for regulatory purposes and is held by Kuflink for and on behalf of its individual clients. However, from 21st April 2022 - corporate funds will be treated as Client money under CASS 7 (Client money) Rules.
CLIENT MONEY RULES: the FCA’s rules relating to Client Money.
COMPOUND INTEREST: On Select Invest this is based on a calculation that becomes payable upon a triggering event involving capital reduction. These cases include partial (pro-rata basis), full repayment or sale on the secondary market.
COMPOUND INTEREST: On Auto Invest or IFISA, this is based on a term longer than 1 year, interest will be compounded annually on the last day of the term unless you opt-out. Your compounded interest and capital will be payable into your wallet when the term of your investment ends.
EVENT OF DEFAULT: any event of default set out in the Loan Conditions.
FAQS: a list of commonly asked questions and answers to help Investors and Borrowers to engage and interact with the Kuflink Platform.
FCA: the Financial Conduct Authority.
FIXED INTEREST RATE: the interest rate outlined in the Key Contract Terms.
GUARANTEE: a guarantee entered into by a Guarantor for the purposes of guaranteeing the obligations of the Borrower in relation to the Loan.
GUARANTOR: a person who has guaranteed the obligations of the Borrower in relation to the Loan.
HMRC: Her Majesty’s Revenue and Customs.
IF-ISA: an innovative finance individual savings account under ISA Regulations.
INTERMEDIARY SERVICES: the services Kuflink provides through it being an intermediary that acts between Borrowers and Investors.
INVESTOR: a person who has an Investor Account on the Kuflink Platform, including those who lend under a Loan Contract.
INVESTOR ACCOUNT: the online investment account which an Investor has with Kuflink.
INVESTOR ELIGIBILITY CRITERIA: the criteria for eligibility that must be satisfied by an Investor and, for a Kuflink IF-ISA.
INVESTOR TERMS AND CONDITIONS: The Terms and Conditions that govern the relationship between an Investor and Kuflink, (including Part 1 in respect of an Investor Account and Part 2 in respect of a Kuflink ISA), as amended or replaced from time to time.
ISA: an individual savings account under the ISA Regulations.
ISA MANAGER: a person or Firm who is approved by HMRC for the purposes of the ISA Regulations as an account manager.
ISA REGULATIONS: the Individual Savings Account Regulations 1998 (as amended, replaced or re-enacted from time to time).
KEY CONTRACT TERMS: a summary of the Loan information for the Borrower which forms part of each individual Loan Contract.
KEY FEATURES AND RISKS STATEMENT: a statement which explains and highlights the key features and risks associated with undertaking lending through a product via the Kuflink Platform and is accessible on the Website.
KUFLINK CLIENT BANK ACCOUNTS: segregated bank accounts that Kuflink maintains for all Client Money held by Kuflink for and on behalf of its individual clients.
KUFLINK GROUP: Kuflink Ltd, Kuflink Bridging Ltd, Kuflink Finance No. 2 Ltd, Kuflink Security Trustees Ltd and all other subsidiaries within the Kuflink corporate group.
KUFLINK IF-ISA: the IF-ISA provided by, and available through, Kuflink which is governed by the ISA Terms and Conditions.
KUFLINK IF-ISA TERMS AND CONDITIONS: Part 2 of the Investor Terms and Conditions.
KUFLINK PLATFORM: the online direct lending Platform operated by Kuflink that facilitates lending and borrowing between Investors and Borrowers.
KUFLINK TERMS AND CONDITIONS: each of the Investor Terms and Conditions and the Borrower Terms and Conditions.
LLP: A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. This is an important difference from the traditional partnership under the UK Partnership Act 1890, in which each partner has joint (but not several) liability.
LOAN: the loan borrowed by a Borrower from Investors on the Kuflink Platform pursuant to a Loan Request.
LOAN COMPLETION DATE: the date on which a Loan completes, once all Kuflink’s requirements in relation to a Loan Request have been satisfied.
LOAN COMPLETION FEE: a fee payable by the Borrower to Kuflink when a Loan completes, at a rate calculated as a percentage of the Loan amount received determined by Kuflink from time to time and notified to the Borrower.
LOAN CONDITIONS: The Terms and Conditions governing the Loan Contract and which form part of the Loan Contract.
LOAN CONTRACT: a loan agreement that sets out the terms of the lending arrangement between an Investor and a Borrower.
LOAN PART: a part of a Loan that has been or is to be funded by an Investor.
LOAN REQUEST: A Borrower’s Loan Application when accepted by Kuflink and listed on the Kuflink Platform.
NOMINATED BANK ACCOUNT: the bank account in the name of the Investor whose details are registered with us during the Investor Account creation process.
PRIVACY POLICY: Kuflink’s privacy policy which is accessible online
RECEIVER: any debt collection agent as may be appointed by Kuflink, any Kuflink Company or on behalf of a lender from time to time.
RECEIVER CHARGE: a charge payable by the Borrower if the Borrower fails to pay any amount due under the Loan Contract which is calculated on the Total Amount Payable.
RECEIVER FEE: any fees levied by the Receiver for the purposes of providing collections and recovery services.
SECURITY: any legal or equitable charge assigned by way of security securing any obligation of any Borrower and any other agreement or arrangement having a similar effect.
SECURITY HOLDER: if Security is taken for a Loan, whichever of the Kuflink Group companies or any other party it may appoint from time to time and any person acting as its agent on its behalf.
SERVICING FEE: an annualised fee payable to Kuflink for servicing the Loan, being a percentage of the outstanding principal in relation to a Loan, determined by Kuflink from time to time.
SIPP: Self-Invested Personal Pension - The SIPP is a Registered Pension Scheme approved by HMRC and governed by a Trust Deed and Rules and any subsequent deeds amending these, which sets out how we must operate the scheme.
SUBSCRIPTION LIMIT: the maximum amount that an individual can subscribe for and contribute to respect of ISAs in any tax year (a tax year starts on 6 April in one year and ends on 5 April the following year), as prescribed in the ISA Regulations and details of which can be found on HMRC’s website and Kuflink’s Website.
TOTAL AMOUNT PAYABLE: in relation to the Loan, the total amount of Loan principal (including any Loan Completion Fee) and all contractual interest due (including the Servicing Fee) to the end of the Loan term outstanding at that time.
TRANSFER AUTHORITY FORM: This form is to be used by an investor when instructing an ISA Transfer from your existing provider to Kuflink.
USER GUIDE: a user guide for all participants on the Kuflink Platform which explains how the Kuflink Platform works for Investors and Borrowers, and which is accessible on the Website.
WEBSITE: https://www.kuflink.com
WEBSITE TERMS OF USE: the terms that govern the use of the Website.

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