Risk Disclaimer & Disclosures
Critical financial risk disclosures and technology caveats for all users of Finovextech.
DRAFT — This document must be reviewed by a legal professional before publishing.
This document serves as an exhaustive risk disclosure in accordance with SEBI risk guidance and Indian statutory expectations for retail fintech tools. It must be ratified by your regulatory compliance counsel before public release.
Risk of Capital Loss in Futures & Options (F&O)
According to a study conducted by the Securities and Exchange Board of India (SEBI):
- 9 out of 10 individual traders in equity Futures and Options (F&O) segment incurred net losses.
- On an average, loss-making traders incurred net losses close to ₹50,000 per person.
- Over and above the net trading losses incurred, loss-makers expended an additional 28% of net trading losses as transaction costs.
1. No Financial Advice, Tips, or Stock Recommendations
Finovextech is solely a software development and technology infrastructure firm. We do not offer, represent, or imply:
- Any financial advice, trading tips, stock recommendations, or intraday calls.
- Portfolio management services (PMS) or discretionary capital management.
- Guaranteed returns, minimum profits, or low-risk claims of any nature.
- Proprietary algorithmic signals that promise market-beating alpha.
All trading strategies, indicators, risk thresholds, order parameters, and execution logic are solely configured and owned by you, the User.
2. Substantial Market Risk and Potential Total Loss
Trading in equities, futures, options, commodities, and currencies carries significant financial exposure:
- Leverage Amplification: Derivative instruments and intraday margin products are leveraged. Small adverse price movements can result in rapid and substantial capital depletion exceeding your initial margin deposit.
- Market Volatility & Gaps: Overnight gaps, unexpected news announcements, earnings releases, and sudden macroeconomic events can blow past stop loss orders, resulting in severe price slippage.
- Illiquidity: Deep out-of-the-money options or thinly traded scrips may suffer from wide bid-ask spreads, preventing order fills at anticipated prices.
3. Technology, Network, and System Latency Limitations
Automated trading relies on an intricate chain of electronic components, each of which is vulnerable to latency or failure:
- Third-Party Signal Delays: Webhooks generated by TradingView, Chartink, AmiBroker, or MetaTrader depend on third-party cloud infrastructure, which may experience delivery lags or dropped packets.
- Broker API Limits & Freezes: Broker APIs enforce strict rate limits, throttle concurrent requests, and can experience disconnects, token invalidation, or unscheduled maintenance during peak market opening hours.
- Exchange Freezes: Stock exchanges (NSE/BSE/MCX) may encounter order matching delays or reject orders outside circuit limits.
- Internet & Hardware Failures: Local power outages, ISP latency, or firewall misconfigurations on the User's machine can prevent signals from reaching the bridge.
4. Sole User Responsibility & Mandatory Safeguards
By utilizing Finovextech, you agree that you are solely responsible for managing your financial exposure:
- You must always implement hard stop loss orders and predefined risk limits on every automated trade.
- You must actively monitor your active trading sessions, broker terminals, and margin utilization.
- You must test strategies extensively in paper trading or with minimum lot sizes before deploying substantial capital.
- You must maintain an emergency exit procedure (such as logging directly into your broker's mobile app or using our kill switch) in the event of software or network disruption.
5. Past Performance & Hypothetical Backtests
Past performance, hypothetical historical backtesting results, and paper trading simulations do not guarantee or represent future performance. Hypothetical models do not account for financial risk, slippage, liquidity vacuums, human emotional intervention, or real-world transaction charges.
By continuing to use Finovextech, you acknowledge that you have read, understood, and agreed to all risks detailed above.