Risk Disclosure

1. General market risk

The prices of shares, indices, futures, options and other instruments rise and fall due to economic, political, company-specific and global events. You may lose some or all of the capital you trade with. Only trade with money you can afford to lose.

2. Risks of derivatives (futures and options)

• Derivatives are leveraged, so a small price move can lead to a large gain or loss relative to your margin.
• Option buyers can lose the entire premium paid. Option sellers face potentially large losses.
• Exchanges and Brokers may raise margin requirements at any time, which can force you to add funds or have positions closed.
• Positions may be squared off by your Broker if margin is insufficient, often at unfavourable prices.

3. Risks specific to algorithmic trading

• Model risk. A Strategy is only as good as its rules. It may not work in all market conditions.
• Overfitting. A Strategy tuned too closely to past data can perform well in backtests and poorly in live markets.
• Regime change. Market behaviour changes over time. A Strategy that worked in trending markets may lose in sideways or volatile markets.
• Speed. Algorithms act instantly. Errors in parameters, quantity or symbols can lead to large losses before you notice.
• Multiple Strategies. Running several Strategies at once can increase your total exposure beyond what you intended.

4. Backtests and simulated results

Backtests, paper trading and performance figures shown on the Platform are hypothetical. They are based on historical or simulated data and have important limits:

• They may not fully account for brokerage, taxes, slippage, bid-ask spreads, latency or partial fills.
• They assume orders were filled at the prices shown, which may not be possible in live markets.
• They are created with the benefit of hindsight.

Past performance, whether actual or simulated, does not guarantee future results.

5. Technology and connectivity risk

• Internet, power, device or software failures on your side can stop Strategies or leave positions open.
• Broker API outages, token expiry, rate limits or errors can delay, reject or duplicate orders.
• Delays or errors in market data can cause Strategies to trade at the wrong time or price.
• Cloud hosting or Platform outages, though rare, can interrupt service.
• Cyber attacks or unauthorised access to your accounts can lead to unwanted trades.

6. Broker and exchange risk

• Your Broker’s risk management systems may block or modify orders.
• Exchanges apply price bands, circuit filters, quantity freeze limits and order-rate limits that can prevent orders from being placed or filled.
• Trading may be halted for a stock, segment or the whole market.
• Your Broker’s policies, charges or eligibility rules for algorithmic trading may change.

7. Liquidity, slippage and gap risk

In thinly traded instruments, orders may fill slowly, partly or at prices well away from the expected price. Prices can also open sharply higher or lower than the previous close, so stop-loss orders may be filled at much worse prices than set, or not filled at all.

8. Costs and taxes

Brokerage, STT, exchange charges, SEBI fees, stamp duty and GST reduce returns, especially for Strategies that trade often. Profits from trading are taxable under the Income-tax Act, 1961. You are responsible for your own tax reporting and payments.

9. Regulatory risk

SEBI, the stock exchanges and other authorities may change the rules for trading, derivatives, margins or algorithmic trading at any time. Such changes may require us or your Broker to modify, pause or withdraw Strategies or features.

10. No guarantee and no investment advice

ALGORICK does not guarantee any profit or protection from loss. ALGORICK is a technology provider and is not a SEBI-registered investment adviser or research analyst. Nothing on the Platform is a recommendation to buy or sell any security.

11. Your responsibilities

Before and while using the Platform, you should:

• understand how each Strategy works, including its entry, exit and risk rules;
• start with small capital or paper trading and increase only after reviewing live results;
• set stop-losses, daily loss limits and position limits suited to your risk tolerance;
• monitor your Strategies and Broker account during market hours;
• keep enough margin in your Broker account; and
• seek independent advice if you are unsure whether trading is suitable for you.

12. Acknowledgement

By using the Platform, you confirm that you have read and understood this Risk Disclosure, that you are trading at your own risk, and that ALGORICK is not responsible for any losses arising from your trading decisions or Strategies.

13. Contact us

For any questions about this document, contact us at: