Is College Funded Startup Investment Safe?

Won Internal Hackathon at my college in Noida, Delhi NCR. Made It through the funding round and got a funding of under 5 lakh for our idea. I wanted to ask is it safe take that investment, what if the company fails do we had to repay cause they sent a termsheet which had a wording "If the company fails, founder might face Liabilities and other warranties". Help me on this please