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Risk Disclosure

MarketBot Risk Disclosure - Understanding the Risks Associated with Our Platform

Risk Disclosure

This document contains important information about trading in the equity and derivatives segments of Indian stock exchanges through algorithmic and copy trading platforms. All prospective users and clients of MarketBot are advised to read and understand this disclosure carefully before initiating any trades.

MarketBot (Aaiva Digital Private Limited), its affiliates, associates, technology providers, or employees do not guarantee the completeness, accuracy, or adequacy of this document. Neither do the stock exchanges or SEBI (Securities and Exchange Board of India) endorse or vouch for the content or the trading strategies offered on MarketBot's platform.

This brief statement does not disclose all the potential risks and important aspects associated with trading. You should only engage in such activities if you fully understand the nature of the relationship and the extent of your risk exposure.

Trading in equity shares, derivatives contracts, or any financial instruments involves inherent market risks. These instruments may not be suitable for individuals with limited financial resources, minimal investment experience, or a low risk tolerance. Users are strongly encouraged to evaluate their financial condition and consult with certified financial advisors before engaging in such trades.

MarketBot, including its management and technical team, shall not be held responsible for any losses or consequences arising out of user decisions. Users shall bear full responsibility for their trading actions. No claim or complaint will be entertained on the grounds of inadequate risk disclosure or explanation of trading strategies.

Users acknowledge and accept that there is no assurance of profits or protection from losses while using any trading strategy (automated or manual) on MarketBot. All trades are subject to market volatility and system performance.

Before initiating trading activities on MarketBot, users must complete all formalities, including KYC documentation, acceptance of the Rights & Obligations statement, and adherence to the applicable rules, regulations, and circulars issued by SEBI and relevant stock exchanges from time to time.

MarketBot does not offer investment advice. All content and strategy-related communication must not be interpreted as a recommendation to buy, sell, or hold any security. You must take your own informed decisions or consult a licensed financial advisor.

1. Basic Risks

1.1 Risk of Higher Volatility

Securities and derivative instruments can be highly volatile. Sudden price movements may lead to partial or no execution of orders, or may result in substantial deviation from expected prices, leading to losses.

1.2 Risk of Lower Liquidity

Less liquid contracts may cause delayed or partial execution of trades. Day trading or scalping strategies using illiquid instruments can result in unfavourable prices or stuck positions.

1.3 Risk of Wider Spreads

Wider bid-ask spreads can erode profit margins, especially in fast markets or low-liquidity environments.

1.4 Risk-Reducing Orders

Orders such as stop-loss, limit orders, etc., may not work as intended during high volatility or rapid price movement. There is no assurance of execution at desired prices.

1.5 Risk of News Announcements

Unexpected news during trading hours can cause rapid movements. Automated strategies may not adapt in real-time to such news-based volatility.

1.6 Risk of Rumors

Market movements based on unverified information may mislead automated systems or manual decisions. Users are advised to verify information before acting.

1.7 System Risk

High-frequency trading, rapid strategy updates, or market-wide events can cause latency, slippage, or order rejections.

1.8 System/Network Congestion

Trading depends on connectivity, server health, and third-party APIs. Issues like downtime, lag, or exchange-side outages may impact trading, especially during peak hours.

2. Platform-Specific Risks on MarketBot

  • Algorithmic and copy trading does not eliminate risk. Even tested strategies can underperform or fail under specific market conditions.
  • Sub-client trading structures, where users add clients under them, increase exposure and risk. The principal client is fully liable for all linked activities.
  • Performance metrics shown on the platform (backtests, strategy charts, past performance) are for reference only. They do not guarantee future results.
  • Trade execution depends on broker and exchange availability. Orders may be rejected due to technical or regulatory issues beyond MarketBot's control.
  • User negligence, including but not limited to setting incorrect parameters, strategy misconfiguration, or lack of monitoring, may result in unintended trades or losses.

3. Additional Risk Factors

3.1 Market Risk

The value of investments can go down as well as up. Market conditions can change rapidly and unpredictably, affecting the performance of trading strategies.

3.2 Leverage Risk

Using leverage can amplify both gains and losses. Small market movements can result in significant losses when using leverage.

3.3 Counterparty Risk

There is a risk that the broker or exchange may not fulfill their obligations, potentially resulting in losses.

3.4 Regulatory Risk

Changes in regulations or trading rules can affect the availability or terms of trading strategies and instruments.

3.5 Technology Risk

Dependence on technology means that system failures, cyber attacks, or other technical issues can result in losses or missed opportunities.

4. Risk Management Recommendations

  • Never invest more than you can afford to lose
  • Diversify your investments across different strategies and instruments
  • Set clear stop-loss limits and stick to them
  • Monitor your positions regularly
  • Keep detailed records of all trades and decisions
  • Stay informed about market conditions and news
  • Consider consulting with a financial advisor before making significant investments

5. Disclaimer

MarketBot is a technology platform providing tools for automated and copy trading. It is not a SEBI-registered advisor or portfolio manager. Users must independently assess the suitability of trades or seek professional advice.

Trading in financial markets is inherently risky. By using MarketBot, you acknowledge that you understand these risks and agree to bear full responsibility for your trading actions.

If you do not fully understand any part of this disclosure or how trading in capital and derivative markets works, you are advised not to use this platform until professional advice is sought.

6. Contact Information

For questions about this risk disclosure or to seek clarification on any risks mentioned:

Email: support@marketbot.info
Address: AAIVA Digital Private Limited, Bhubaneswar, Odisha, India

Last Updated: July 15, 2025