Platform Offer Cancellation Process #

investment/offer_cancellation.pug - Required by law

investment/return_funds.pug - Required by law

investment/refund_completed.pug - Optional

flowchart TD A[Admin Initiates Offer Cancellation] --> B(Offer and associated investments Statuses Updated to Unsuccessfully Closed) B --> C(Further Investments Disabled) C --> D(Investment Status Updated to Cancelled by investor after investment) D --> E([LAW REQUIRED EMAIL : Cancellation Details]) D --> F(Refunds Initiated based on Original Payment Methods) F --> G(Refund Processing) G --> H([LAW REQUIRED EMAIL : Refund is being processed ]) G --> I(Refund is completed to Original Payment Source) I --> J([EMAIL : Refund is completed]) I --> K(Offer Details are archived for Compliance) K --> L[Investor and Platform Records Updated]

The issuer or platform may cancel an offering at any time, provided it’s disclosed to investors. According to SEC, If the issuer cancels the offer before it closes, investors must be informed, and all funds should be refunded.

The platform admin or relevant team initiates the offer cancellation due to a valid reason (e.g., insufficient funding, regulatory issues, market changes). The admin sets the offer status to “Unsuccessfully Closed” and disables further investments. This action archives the offer and associated investments for compliance and record-keeping.

The platform sends out required by law email notifications to all investors who committed funds to the canceled offer. The message includes the reason for cancellation, the cancellation process overview, and an estimated refund timeline. For each investor in the canceled offer, the platform updates the investment status to “Unsuccessfully closed”, voiding any agreements and removing the investments from active portfolios.

The platform automatically initiates refunds for each canceled investment. The refund process will depend on the original payment method (ACH, Dwolla Wallet, etc.). A bank transfers to return the funds to the investor’s original bank account are initiated. This process typically takes 1–3 business days. The required by law email notifies the investors that the funds are being processed.

The investors receive additional email confirmation once the funds have been successfully refunded.

Our email-service has integration with the trusted delivery and marketing platform which ensures security, compliance, and deliverability. It obust encryption and regulatory compliance (FINRA), protecting sensitive financial data and minimizing the risk of phishing or email spoofing. Additionally, third-party providers handle scalability, uptime, and automation, ensuring timely communication during high traffic periods and streamlining customer notifications.

Notice: Provider Variability and Compliance Assurance

Please be advised that, depending on customer preferences, the specific providers involved in the investment and related processes, including identity verification, accreditation checks, electronic wallet provision, email communications, and other related services, may vary. However, rest assured that all such providers are carefully selected to meet the highest standards of security, compliance with applicable laws and regulations, and user experience best practices.

Each provider undergoes a rigorous vetting process to ensure they align with our commitment to safeguarding your personal and financial information. We prioritize full adherence to regulatory requirements, ensuring that your investment experience remains secure, compliant, and seamless.

Test Cases

All processes on our platform are thoroughly documented, including detailed test cases, which are especially critical whenever changes are made. Test cases ensure that every feature functions as intended, identify potential issues early, and maintain the platform’s reliability, security, and compliance for our investors.

Investment Cancellation and Refund For Reg A and D investment cancellations are less common, but if allowed, would typically be governed by the terms in the subscription agreement. Refunds are possible if the investment is canceled before completion. The SEC requires clear communication and the return of funds.
Offer Cancellation

The issuer or platform may cancel an offering at any time, provided it’s disclosed to investors. According to SEC, If the issuer cancels the offer before it closes, investors must be informed, and all funds should be refunded.

Offer Closed Unsuccessfully

If an offer fails to reach its minimum funding target, it is considered unsuccessful. The issuer cannot access funds and must refund investors. SEC and FINRA requires the platform to notify investors and update the offering details accordingly.

Offer Closed Successfully

Once the offer closes successfully (i.e., reaching its target), funds are transferred to the issuer. The SEC requires platforms to file closing updates and require notification of the successful closure to investors. Investment is considered final after this point, and funds are non-refundable, unless fraud or misrepresentation occurred.

Offer Early Closing

Early closing is allowed but must be disclosed in the offering materials. If the offering is closed early, the platform must notify investors promptly and ensure all investments made up to that point are processed. The SEC requires platforms to update the offering status in the official filings.

Offer Material Change

If there is a material change in the offering (e.g., changes to terms, risks, or funding goals), the issuer must update the offering disclosure and file an amended document with the SEC . Investors must be notified, and depending on the nature of the change, investors have the right to withdraw their investment.

Related Use-Cases: