@Nekko brings up a lot of points I brought up in my livestream while working on the rigs Peter and I mine with.
Basically I look at cloud mining like this:
By signing up for cloud mining you are taking on all of the risk. How? You have paid the upfront cost of the equipment for the cloud mining company. So you have put the money up, their responsibility is now to pay you back. They have not guaranteed to you any amount of payback. Your contract is at least a year with the stipulation in your contract that they may cancel your contract due to electrical costs, maintenance fees, or not profitable. Not profitable to whom though? So all of the risk of not obtaining your ROI is on you. For them, you have paid the cost of equipment and they will mine on that equipment until it is not profitable anymore for them. They also hold the assets which hold some value.
Next, most of them want you to pay them in crypto. You are paid back in crypto over time. If there is a fork during this time, you are out that amount.
I touched on this already but it is very important. Read your Terms and Conditions! The biggest lie on the internet is when you click that you have read the terms and conditions and you agree with them. No one reads all that “boring” stuff until it’s too late. Read it and make sure you understand it. Each one that I have read will have clauses for them not to have to pay you. For one reason or another, they don’t have to always pay you and it’s on their terms. If THEY deem it not profitable. This is the shift of risk from them to you.
They make money no matter what. Either through taking their portion of the mining, the equipment, or your violation of the contract.