It reminds me of gray market capital investments. They are actually quite regulated, and the contracts are only valid if the investor is fully aware of the risks associated with the investment.

In practice the providers sprinkle a handful of warning messages, akin to the California cancer label and call it a day.

Of course this leaves judges unconvinced and the contract will be redeclared as a loan, which means that the provider was illegally operating as a bank without a banking license, which is a much more serious violation than scamming someone out of $5000.