The term "substantial risk of loss" is a legal concept that refers to the potential for an investor or business owner to suffer significant financial harm due to certain actions, decisions, or events. In other words, it means taking a chance on something with the possibility of losing a lot of money if things don't go as planned.
This phrase can be used in various contexts such as securities law, where it refers to the risk that an investment may decline in value or become worthless. In insurance law, it means the chance of incurring a financial loss due to an accident or other covered peril. It is also relevant in contract law when discussing the potential for one party to suffer harm if the terms of the agreement are not met.
Overall, "substantial risk of loss" signifies a level of uncertainty and potential danger that can impact financial well-being.