⚠ LEGAL · RISK DISCLOSURE

Risk Disclosure Document

Effective date: 23 May 2026 · Version 1.0

01SEBI's mandated finding

Per a SEBI study released in 2024, approximately 90% of individual traders in the equity F&O segment incur net losses over the financial year. The average net loss across loss-makers ran into several lakh rupees. Algorithmic and signal-based trading does not exempt you from these statistics.

02What you are agreeing to

Chakravala is a technology platform. We provide software to design strategies, run backtests on historical data, paper-trade with virtual capital, and — if you explicitly enable it — execute real orders on your connected broker (Zerodha Kite). We do not:

• Hold any SEBI registration as a Stock Broker, Investment Advisor, Research Analyst, Portfolio Manager, or AIF.
• Hold or manage your funds. All money stays with your broker; we only send order instructions.
• Guarantee, predict, or promise any specific level of profit or return.
• Provide personalised investment advice or recommendations tailored to your financial situation.

03Specific risks of derivatives

• Leverage — options magnify both gains and losses; a small adverse move in the underlying can wipe out 100% of premium paid.
• Time decay (theta) — options lose value with every passing day even if the underlying does not move.
• Volatility risk (vega) — sudden changes in implied volatility can cause large mark-to-market swings.
• Liquidity risk — far-OTM or far-expiry options may have wide bid-ask spreads, leading to significant slippage on entry and exit.
• Gap risk — overnight news, RBI announcements, geopolitical events or earnings can cause the next-day open to be far from the previous close.
• Assignment risk — short option positions held to expiry may result in physical or cash settlement that requires additional margin.
• Margin calls — your broker may force-exit positions if the margin requirement is not met. This can crystallise losses at unfavourable prices.

04Risks specific to algorithmic and signal-based trading

• Past performance is not predictive. Backtest equity curves, strategy P&L, and signal track records shown anywhere in Chakravala are historical and may not repeat. Market regimes change.
• Backtest ≠ live. Real-world execution will differ from backtests due to slippage, latency, partial fills, broker rejections, and intraday volatility not captured in historical OHLC data.
• Algorithm errors. Any software can contain bugs. A bug in a strategy, the indicator library, or the execution layer may produce unintended orders or fail to exit losing trades on time.
• Connectivity and outage risk. Internet, broker API, exchange or Chakravala outages may delay or prevent signal generation and order placement. We do not guarantee uninterrupted execution.
• Latency. Orders may arrive at the exchange after the prevailing price has moved, resulting in fills different from displayed quotes.
• Mode-switching risk. Switching between PAPER and LIVE modes affects only future signals. Already-open positions in either mode are not migrated.

05Chakravala Prime — additional disclosures

Chakravala Prime is a signal feed in which the platform's admin fires trade signals that are auto-executed on subscriber accounts in PAPER or LIVE mode (subscriber's choice). You explicitly acknowledge that:

• Prime signals are not investment advice tailored to you. The same signal is sent to every active subscriber regardless of their financial situation or risk capacity.
• The historical performance of Prime signals shown on the platform is not a forecast of future performance.
• Signal entries, exits and stop-losses are decided by the platform admin and may be wrong; you remain financially responsible for any resulting trade.
• You can pause or cancel your Prime subscription at any time from /subscription; doing so closes any open Prime positions at the prevailing price.

06Suitability — only trade what you can afford to lose

Before enabling live trading on Chakravala you must satisfy yourself that:

• You understand how options and derivatives work, or are willing to learn before risking real capital.
• The capital you are deploying is risk capital — money whose total loss would not materially affect your essential expenses, debt obligations, or financial dependents.
• You have set a daily loss limit on your account (Settings → Risk → Max Daily Loss) and accept that hitting it will halt live trading for the day.
• You will monitor your positions and not rely solely on automated SL/TP for risk control.

07No advice from Chakravala

Nothing on Chakravala — including dashboards, signals, strategies, backtests, blog posts, emails, Telegram messages, or support chats — constitutes investment, tax, accounting or legal advice. If you need such advice, consult a SEBI-registered Investment Advisor or Research Analyst, and a qualified tax professional.

08Your acknowledgment

By creating an account, connecting your broker, or enabling any live trading feature, you acknowledge that you have read, understood and accepted the risks described in this document, the Terms of Service, and the Privacy Policy. You agree that you alone are responsible for every trade placed through your Chakravala account, and that Chakravala's liability is limited as set out in the Terms of Service.

09Contact

Questions about risk or this document: support@chakravala.com. Grievances about data handling: privacy@chakravala.com.