Legal

Risk Disclosure

Effective date: 15 October 2026 Equanimity Algo AI Technologies · UDYAM-RJ-07-0151237

Risk disclosures on derivatives (as published by SEBI):

  • 9 out of 10 individual traders in the equity Futures and Options segment incurred net losses.
  • On average, loss makers registered a net trading loss close to ₹50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits incurred between 15% and 50% of such profits as transaction costs.

Source: SEBI study published in January 2023 on the analysis of profit and loss of individual traders dealing in the equity F&O segment, covering FY 2021-22.

1. General market risk

Prices of securities, derivatives and commodities can rise or fall quickly and unpredictably because of economic, political, company-specific and global events. You may lose some or all of the capital you trade with. Trade only with money you can afford to lose.

2. No investment advice

Equanimity provides software. It does not provide investment advice or recommendations, and nothing in the Services is a solicitation to trade. If you need advice, consult an investment adviser registered with SEBI.

3. Risks of automated and algorithmic trading

  • Technology failure: software errors, server or device failures, power or internet outages can stop a strategy, delay an exit or cause unintended orders.
  • Broker and exchange systems: broker API outages, rate limits, rejected or modified orders, expired sessions and exchange halts are outside our control.
  • Execution risk: orders may be filled at prices different from those expected (slippage), partially filled or not filled at all, especially in fast or illiquid markets and around price gaps.
  • Data risk: market data may be delayed, incomplete or incorrect, which can trigger or miss signals.
  • Configuration risk: an error in your strategy rules, quantities, capital allocation or risk limits can cause large losses very quickly.
  • Regulatory change: SEBI, exchanges and brokers may change rules on algorithmic and API-based trading, which may affect how the Services work.

4. Limitations of backtesting and paper trading

Backtests and paper trading use historical or simulated data. They cannot fully account for liquidity, slippage, latency, partial fills, changing market conditions or the effect of your own orders, and strategies can be unintentionally fitted to past data. Good backtest or paper-trading results do not mean a strategy will be profitable in live trading.

5. Intraday trading and leverage

Intraday (MIS) positions may use leverage provided by your broker, which magnifies both gains and losses. Intraday positions are squared off automatically by the platform at 15:15 IST and by brokers at their own cut-off times, which may happen at unfavourable prices.

6. Futures and options

Derivatives are leveraged and complex. Option buyers can lose the entire premium paid; option sellers and futures traders can incur losses far greater than the margin deposited. Options are affected by time decay, volatility and expiry, and stock derivatives may be physically settled. Read the risk disclosure document provided by your broker and the exchange before trading derivatives.

7. Commodities

Commodity prices are influenced by global supply and demand, currency movements, weather and geopolitical events. Commodity markets in India trade into the evening, and each contract has its own lot size, price unit, margin and expiry, which you must understand before trading.

8. Limits of risk controls

Stop-losses, loss limits, the kill switch and automatic square-off reduce risk but cannot eliminate it. A stop-loss does not guarantee an exit at the stop price, and controls may not operate if systems, connectivity or broker services fail. Monitor your positions directly in your broker account.

9. EquanimityFX, forex and prop-firm programmes

EquanimityFX is software for MetaTrader 5 users. Equanimity does not offer brokerage, accept funds or recommend any broker or proprietary-trading firm. For persons resident in India, trading forex or contracts for difference (CFDs) through overseas platforms not authorised under the Foreign Exchange Management Act, 1999 is not permitted; the Reserve Bank of India publishes an Alert List of unauthorised forex trading platforms. Use EquanimityFX only where it is lawful for you, and read the rules of any proprietary-trading programme carefully.

10. Acknowledgement

By using the Services you confirm that you have read and understood these risks, that your trading decisions are your own, and that you are solely responsible for the results of your trading.