Agroforestry tree micro-investment involves biological, meteorological, and commodity market risks. Prior to executing any tripartite agreement or subscribing to a Tree-SIP plan, you are advised to read this document in its entirety and consult an independent legal and financial advisor.
01.SEBI CIS Non-Pooling Architecture (Section 11AA Exemption)
CashKG operates under strict adherence to the Indian securities and financial regulatory framework:
CashKG is NOT a Collective Investment Scheme (CIS), Alternate Investment Fund (AIF), or Chit Fund. In accordance with established judicial precedents (including SEBI v. Golden Forests Ltd. and subsequent appellate interpretations):
- No Commingled Asset Pooling: Capital contributions are never pooled into an undivided, indiscriminate fund. Each micro-unit is legally tied to an identifiable, sub-meter GPS polygon on a verified rural cadastral parcel.
- Direct Tripartite Contracting: Subscribers enter into individual tripartite lease custody deeds with the underlying registered rural landholder.
- Identifiable Physical Produce: Harvest off-takes represent physical timber logs, bamboo culms, and certified carbon certificates harvested specifically from the allocated trees.
02.Biological Yield Uncertainties & No Return Guarantees
CashKG does NOT guarantee fixed financial yields, guaranteed buy-back returns, or risk-free bank interest rates:
Timber prices per kilogram (e.g. ₹14/kg Melia Dubia, ₹42/kg African Mahogany) represent current wholesale APMC benchmarks and forward off-take arrangements. Market prices at final rotation maturity may fluctuate.
Tree growth rates depend on soil nutrition, micro-climates, rainfall distribution, and subterranean aquifer levels. Projected internal rate of return (IRR) figures are based on mathematical models, not guaranteed bank deposits.
03.Force Majeure & Insurance Safeguards
While all reserves are insured under weather-index and fire perils policies:
- Natural Catastrophes: Acts of God including unseasonal drought, cyclonic winds, catastrophic flooding, or lightning strikes may damage standing biomass.
- Biological Invasions: Sudden pest attacks or viral pathogen outbreaks (e.g. root rot, borer beetle infestation) are mitigated through agronomy interventions but cannot be completely excluded.
- Parametric Limitations: Insurance payouts from general insurance consortia are subject to policy excess deductibles and claim settlement timelines.
04. Financial Modeling & Calculator Disclaimers
The online Tree-SIP compounding modeler, biomass yield estimators, and carbon offset calculators provided on this platform are for educational and financial modeling purposes only. Past biological growth performance in pilot reserves does not guarantee identical future vegetative yields in newly planted parcels.