State Financial Suitability Requirements

If I am a resident of Alaska, Idaho, Missouri, Nevada, New Hampshire, Oregon, Virginia or Washington, I confirm, under penalty of perjury, that:

  • I have (i) an Annual Gross Income of at least $80,000; AND (ii) a Net Worth of at least $80,000; OR I have a Net Worth of at least $280,000; and
  • I will not purchase Notes and PMI Management Rights in an amount in excess of 10% of my Net Worth.

If I am a resident of California, I confirm, under penalty of perjury, that I meet one or more of the following suitability requirements:

  • (i) You must have had an annual gross income of at least $85,000 during the last tax year; (ii) you must have a good faith belief that your annual gross income for the current tax year will be at least $85,000; and (iii) the total amount of Securities you purchase cannot exceed 10% of your net worth; or
  • (i) Your net worth must be at least $200,000 (or $300,000 together with your spouse); and (ii) the total amount of Securities you purchase cannot exceed 10% of your net worth; or
  • (i) Your net investment in Securities cannot exceed $2,500; and (ii) the total amount of Securities you purchase cannot exceed 10% of your net worth.

If I am a resident of Maine, I acknowledge that:

  • The Maine Office of Securities recommends that my aggregate investment in Notes, PMI Management Rights and similar offerings not exceed 10% of my Net Worth.

If I am a resident of Missouri, I acknowledge that:
  • The Office of the Missouri Secretary of State, Securities Division requires that my aggregate investment in Notes, PMI Management Rights and similar offerings by Prosper Marketplace, Prosper Funding or their affiliates not exceed 10% of my Net Worth.

If I am a resident of Oregon, I acknowledge that:
  • The Oregon Division of Finance and Corporate Securities requires that my aggregate investment in Notes, PMI Management Rights and similar offerings by Prosper Marketplace, Prosper Funding or their affiliates not exceed 10% of my Net Worth.

For purposes of the suitability requirements described above, an investor and his or her spouse is considered to be a single person. In addition, the following definitions apply:

 

“Annual Gross Income” means the total amount of money earned each year, before deducting any amounts for taxes, insurance, retirement contributions or any other payments or expenses.

 

“Net Worth” means the total value of all assets, minus the total value of all liabilities. The value of an asset is equal to the price at which an investor could reasonably expect to sell the asset. In calculating net worth, an investor should only include assets that are liquid, meaning assets that consist of cash or something that could be quickly and easily converted into cash, such as publicly-traded stock. An investor should not include illiquid assets in the calculation of net worth, such as homes, home furnishings or cars.

 

“Net Investment” means the principal amount of Notes and PMI Management Rights purchased, minus principal payments received on the Notes and PMI Management Rights.

Notes offered by Prospectus. Notes investors receive are dependent for payment on unsecured loans made to individual borrowers. Not FDIC-insured; investments may lose value; no Prosper or bank guarantee. Prosper does not verify all information provided by borrowers in listings. Investors should review the prospectus before investing.