What does the EU crowdfunding licence actually protect, and what does it not?

The EU crowdfunding regulation (ECSPR) gives licensed platforms one set of rules across the EU. For investors it adds several protections:
- A key investment information sheet for each project, at most six A4 pages.
- An entry knowledge test and a simulation of your ability to bear losses (10% of net worth) for non-sophisticated investors.
- A risk warning and your explicit consent before investing more than 1,000 euros or 5% of your net worth in a single offer, whichever is higher.
- A reflection period of four calendar days after an offer, during which you can change your mind.
- A limit of 5 million euros a project can raise in 12 months.
What it does not do: it is not a deposit guarantee, it does not check the quality of projects or their forecasts, and it cannot stop a borrower, a project or the platform itself from failing. A licence sets minimum disclosure standards; the investment decision and the risk stay with you. Capital is at risk: crowdfunding investments are not covered by deposit guarantee schemes, can lose part or all of their value, and may be hard to sell before the end of their term.