Folio Investments, Inc.

Note Trading Platform Disclosures

Prosper Borrower Payment Dependent Notes (“Notes”) offered and sold on the Folio Investing Note Trader platform (the “trading platform”) were initially issued by Prosper Marketplace, Inc. (“Prosper”). At the time of issuance, each original Note purchaser designated the proceeds to facilitate the funding of a corresponding borrower loan originated through the Prosper internet-based loan platform to an individual consumer who is a borrower member of Prosper (a “Prosper Borrower Loan”). Folio Investing was in no way involved with the initial issuance of the Notes.

You acknowledge the following:

Compliance with Federal and State Securities Laws

The Risk of the Notes

The Notes are highly risky and speculative. They are suitable only for investors whose investment objective is speculation. You could lose most or all of the money you invest in them. For more information, read the Risk Factors section in the most current Prosper prospectus which can be found here.

Underlying Borrower Information, Prosper Ratings, Interest Rates

For each Note listed for sale on the trading platform, certain information about the corresponding loan related to that Note is available. This information may include the payment history on the corresponding loan from the date of its origination and an updated credit score range for the borrower. See the discussion regarding the 'Credit Score Range' below. The payment history and updated credit score range are not reflected in the interest rate on the Note.

For trading members' convenience, the original loan listing as compiled and displayed by Prosper is available for viewing. Much of this information was supplied by the borrower member prior to the original issuance of the Note and was not verified by Prosper. lt may have been inaccurate or intentionally false at the time it was supplied or it may have become inaccurate with the passage of time. The borrower member information has not been updated since it was first published.

All of the above information is provided to FOLlOfn by Prosper and presented for your information only. FOLIOfn does not and did not verify or in any way check the accuracy or timeliness of such information as it plays no role in the approval of Prosper members or the origination of a Prosper Borrower Loan.

Credit Score Range

Prosper may obtain an updated credit score of a borrower on a loan corresponding to a Note and an updated credit score range for the borrower may be displayed with the information describing the corresponding loan that is displayed as described above. The updated credit score, however, has no effect on the interest rate on an outstanding Note. Interest rates on outstanding Notes were set by Prosper at the time of origination of the Loan.

Offers on the Trading Platform

All starting bid prices for the Notes are determined solely by the seller of a Note. The trading platform displays the Notes a seller has offered or desires to sell, and the starting price at which the proposed transaction would occur as determined by the seller. Trading members may bid higher than the starting price to purchase the Note, but may not bid a price higher than the total of the payments remaining on the corresponding loan. After a trading member places a bid to purchase a Note, that bid may not be withdrawn. FOLlOfn does not assure any seller that it will be able to sell its Notes; transaction execution is contingent on the availability of a buyer who accepts the Sellers terms. FOLIOfn does not act as a market maker in the Notes.

Participants on the Trading Platform

Servicing Loans

In addition to issuing Notes, Prosper services the corresponding Prosper Borrower Loans originated through the Prosper platform on an ongoing basis, including administering payments to the holders of Notes. For all Notes, Prosper will pay to the holder of a Note the principal and interest on such Note in an amount equal to the Note's pro rata portion of the principal and interest payments, if any, that Prosper receives on the corresponding loan, net of servicing fees. Prosper also will pay to the holder any other amounts Prosper receives on such Note, including late fees and prepayments, subject to the servicing fee, except Prosper will not pay any non-sufficient funds fees for failed borrower payments or collection fees charged by Prosper, the servicer of the loan, or any third-party collection agency.

The servicing fee for Notes is equal to an annualized rate of 1.00% of the outstanding principal balance of the corresponding borrower loan and is charged by Prosper. Prior to making any payments on any Note you purchase on the trading platform, Prosper will deduct the forgoing servicing fee, which will reduce the effective yield on your Notes below their stated interest rate.

©2011 by FOLIOfn, Inc. All Rights Reserved. Securities products and services offered through FOLIO Investments, Inc. ("FOLIOfn" or "FOLIO Investing"). Member FINRA/SIPC.