Downside Protection

One of ZAP’s fundamental business model innovations ensures that incentives between projects and investors are aligned: Projects launching on ZAP have the option to opt into Downside Protection.

Downside Protection ensures that projects do not immediately receive all raised funds upfront. Instead, projects are required to hold their price for a pre-defined timeframe before receiving their raised funds. This approach helps maintain transparency and ensures that investors are protected from malpractice and easily avoidable mistakes on the project side. Both ZAP Labs and Launch offer projects to opt in to Downside protection, enhancing investor trust and the likelihood of securing capital. Downside Protected launches will be clearly branded as such.