Risk Disclosure Statement

1. What this statement covers

QuantGrid sells three products: trade replication, QuantGrid AlgoTrader and QuantGrid Static IP. The first, trade replication, is order replication software. A parent account you nominate places an order, and the Platform mirrors that order into the child accounts you have linked, using the quantity multipliers and limits you configured. The Platform executes instructions. It does not originate a view on any security.

The second, QuantGrid AlgoTrader, is trading software you install and run on your own computer, on Windows, macOS or Linux. It places real orders in your broker account from the rules, strategies and limits you write or configure in it, and from nothing else. Sections 2 to 10 of this statement are written about trade replication, with a paragraph for AlgoTrader at the end of section 10, and section 11 sets out which of them apply to AlgoTrader as well, and the risks that come from AlgoTrader itself.

The third, QuantGrid Static IP, supplies a static IP address and a proxy for your own software; it places no orders and gives no advice.

QuantGrid is a technology platform, not an investment adviser. QuantGrid is not registered with the Securities and Exchange Board of India (SEBI) in any capacity: not as an Investment Adviser, not as a Research Analyst, and not as a Portfolio Manager.

This statement describes risk. It sits alongside the Terms of Service, which govern your use of the Platform, the Disclaimer, and our compliance position. Nothing here is exhaustive. No written document can list every way a market position can go against you.

Where this statement says "you", it means every person whose account is linked to the Platform, whether as a parent or as a child, and whether the account belongs to you or to someone who has authorised you to operate it, and every person who uses QuantGrid AlgoTrader.

2. Market risk

The price of any security can fall as easily as it can rise, and it can do so faster than any order routing system can react. The following are ordinary market conditions, not exceptional ones:

• Volatility. Prices can move several percent within seconds around results, policy announcements, index rebalancing or global news. A position that looked small when you sized it can become large in its effect on your capital within a single session.
• Gap openings. Markets are closed overnight and over weekends and holidays, but news is not. A stock can open far below the previous close, past any level at which you intended to exit. A stop level is a trigger, not a guarantee of the price you will get.
• Circuit limits and price bands. When a security hits an upper or lower circuit, or a market-wide circuit breaker halts trading, you may be unable to exit at any price until the band is revised or trading resumes. Orders can sit unexecuted while your exposure remains.
• Corporate actions and contract changes. Splits, bonuses, mergers, expiries and lot-size revisions change what a quantity means. A multiplier you set months ago keeps doing exactly what you told it to do, even after the underlying contract specification has changed.

3. Leverage, margin and multipliers

Intraday equity, futures and options positions are leveraged: you control an exposure much larger than the margin you have deposited. Leverage is symmetric. It magnifies adverse moves exactly as much as favourable ones.

• Losses on leveraged positions can exceed the margin deposited in the account. Your broker can call for additional margin at short notice, and can square off your positions without further reference to you if it is not met.
• Writing (selling) options carries risk that is theoretically unlimited on the upside and very large on the downside, against a premium that is capped.
• Margin requirements are set by the exchange, the clearing corporation and your broker, and can be raised intraday. A position that was fully margined in the morning can be short of margin by the afternoon without you doing anything.

A copy factor above 1.0 increases risk proportionally

The copy factor you set for a child account multiplies the size of every order replicated into it. A factor of 2.0 does not double your chance of a good outcome. It doubles the size of the position, and therefore doubles the rupee value of every adverse move, doubles the margin required, and doubles the loss if the trade goes against you. A factor above 1.0 is a deliberate decision to take more risk than the parent account is taking.

On F&O and commodity, child quantity is calculated as floor_to_lot(parent_qty x copy_factor), then capped by the maximum quantity you set. Rounding there is always down, never up, because exchanges reject quantities that are not whole multiples of the lot size; cash equity has no lot and is rounded to the nearest whole share. Worked example for a parent order of 150 in an instrument with a lot size of 25:

Read the third row carefully. A factor of 1.30 produced 1.17x exposure, not 1.30x, because 195 is not a whole number of lots. If you had also set a maximum quantity of 200, the last row would have been capped at 200 rather than 300. Your child account will frequently not be a clean multiple of the parent, and you should assume that rather than be surprised by it.

4. Risks specific to copy trading and automated replication

These risks exist only because the orders are replicated. They are in addition to, not instead of, ordinary market risk. If you want the mechanics in detail, see how replication works.

You are delegating trade selection

When you link a child account to a parent, you are choosing to have someone else's trading decisions executed in your account, at your size. Those decisions may be wrong. They may be wrong repeatedly. The parent may change strategy, take larger positions than before, trade instruments you do not understand, or make an error of judgement or of entry. Every one of those outcomes reaches your account automatically, without a confirmation step unless you have configured one.

QuantGrid does not vet or endorse any parent account

We do not screen, rate, rank, verify, endorse, supervise or monitor any parent account, its operator, its strategy, its track record or its claims. We do not check whether a parent is who they say they are or whether any past record they show you is real. The Platform will replicate from whatever parent you nominate, and the choice of that parent, together with every consequence of it, is entirely yours.

Slippage: the child's price will often differ

Replication is fast, but it is not instantaneous and it is not simultaneous. Time passes between the parent's order and the child order reaching the exchange, and the child order then queues and fills on its own terms. The child's execution price will frequently differ from the parent's, and in fast-moving, gapping, illiquid or circuit-limited markets that difference can be material. Latency figures we publish are medians measured inside our infrastructure, not a promise about any individual order, and they say nothing about the price you get.

A child order can be rejected while the parent's succeeds

A replicated order is a new order at a different broker with different account state. It can be rejected or blocked for reasons that have nothing to do with the parent, including:

• insufficient funds or margin in the child account,
• position limits, exposure limits or product restrictions applied by that broker,
• the instrument not being available, not permitted, or under a ban period,
• an expired or revoked broker session, or an unauthorised API key or IP address,
• broker-side risk restrictions, freeze quantities, or exchange rejections.

When that happens, your accounts are out of sync: the parent holds a position and the child does not, or the reverse. The Platform records and alerts on the rejection. It cannot undo it, and it cannot force the order through.

Child exposure may not be proportional to the parent's

Partial fills, rounding down to the lot size, and your maximum-quantity cap all mean the child's position can be smaller in proportion than the parent's. Where a parent order fills in several chunks, each replicated increment is rounded independently, so the total can end up slightly off the multiplier you set. Do not assume the accounts are mirror images. Assume they are approximations that you check.

A failed exit can leave you holding a position

This is the risk that hurts most. If the entry replicates successfully but the exit does not, because of a rejection, a session expiry, a broker outage or any other failure, the child account is left holding an open position that the parent has already closed. The position stays open, and its risk keeps running, until someone closes it.

5. Technology and operational risk

The Platform depends on systems that neither you nor we control end to end. Any of the following can delay replication, prevent it, or interrupt it midway:

• Connectivity and power. Internet failure, ISP routing problems, data-centre incidents or power loss at any point in the chain.
• Broker API downtime and rate limiting. Broker APIs go down, degrade, queue, or throttle requests, particularly at the open, at expiry and during high volatility, which is exactly when replication matters most.
• WebSocket disconnection. Order-update sockets drop. We fall back to REST order-book polling automatically so that replication continues, but a fallback path is slower than a live socket, and an event can still be delayed.
• Session expiry. Indian broker access tokens expire daily and some require a fresh login or a two-factor step. Until you re-authorise, that account cannot be read from or traded through.
• Exchange and clearing incidents. Technical halts, trade annulments, settlement issues and session extensions are decided by the exchange, not by us.
• Latency, defects and maintenance. Software can contain defects. Deployments, upgrades and scheduled maintenance can briefly interrupt service.

We engineer against these conditions: duplicate-order protection on every replicated order, automatic fallback when a socket drops, alerting on failures, and a full audit trail you can inspect. See how the platform is built and secured. No software, ours included, can eliminate these risks. Any uptime commitment is a service level, not a guarantee that every order will be replicated.

6. Liquidity and impact cost

Replication multiplies one decision into many orders that reach the market within a very short window. In a liquid large-cap or a near-month index contract this is usually immaterial. In a thinly traded stock, an illiquid strike, a far-month contract or a small-cap under a price band, it is not.

• The combined size of the parent and all child orders can be large relative to the resting depth on the book, so later orders in the sequence fill at worse prices than earlier ones.
• Accounts replicated later in a fan-out can systematically receive worse fills than accounts replicated earlier, purely because of sequencing.
• Exiting is harder than entering. The same aggregate size that entered has to find buyers, and it may have to do so when liquidity has thinned or the book has moved away.
• Wide bid-ask spreads mean impact cost is incurred immediately on entry, before the position has moved at all.

If you run many accounts, or large multipliers, treat instrument liquidity as a constraint on how you configure the Platform, not as an afterthought.

7. Regulatory and tax risk

The rules that apply to trading, to automation and to operating accounts on behalf of others are set by SEBI, the exchanges, the clearing corporations, your broker and the tax authorities. They change, sometimes at short notice and sometimes with retrospective effect on positions you already hold.

• Regulations governing algorithmic and automated order placement by retail participants continue to evolve. A change may require us to alter, restrict or withdraw a feature, or may require you to change how you use it.
• Your broker's terms govern your account. Some brokers place conditions on API use, on automated order placement, or on third-party tools. It is your responsibility to confirm that your intended use is permitted under your own broker agreement.
• Operating other people's money is regulated. If you manage, solicit, pool or trade funds belonging to anyone other than yourself, or charge for doing so, or share in outcomes, you may require registration or authorisation in your own name from SEBI or another authority. Obtaining and maintaining that is entirely your responsibility. QuantGrid does not provide it, does not extend any registration to you, and does not verify whether you hold one.
• Tax treatment of trading income, including classification, set-off, audit thresholds and reporting, depends on your circumstances and can change. We do not provide tax or legal counsel. Consult a qualified professional.

8. No guarantee of outcome

QuantGrid does not offer, promise or imply any profit, assured return or performance outcome, and does not share in your profits or losses.

Replication is a mechanism for executing orders consistently across accounts. Consistent execution of a losing decision produces a loss in every linked account at once. Speed and reliability are engineering properties of the Platform. They are not, and cannot be, a statement about market outcomes.

QuantGrid is a technology platform for order replication. It is not registered with SEBI, does not provide investment advice, and does not guarantee any return. Trading in securities carries substantial risk of loss. You are solely responsible for your trades.

9. Suitability: an honest self-assessment

Work through the following before you link an account. If you cannot answer yes to all of them, automated replication is probably not appropriate for you right now.

• I understand the instruments that will be traded in my account, including how futures and options behave, and I would be willing to place these trades manually.
• I understand that a copy factor above 1.0 increases my exposure, my margin requirement and my potential loss in proportion.
• I have chosen my parent account myself, on my own assessment, knowing that QuantGrid does not vet or endorse it.
• I can monitor my accounts during market hours, or I accept the consequence of not being able to, including being left in a position after a failed exit.
• I know how to square off or cancel directly with my broker without relying on the Platform.
• My margin is sufficient for the size I have configured, with headroom for an intraday margin increase.
• I could absorb a total loss of the capital in these accounts without affecting my obligations, my household or my ability to meet a margin call.
• I am not trading with borrowed money, with money I need soon, or with money whose loss I would have to explain to someone else.

10. Acknowledgement

By creating an account, linking a broker account, or otherwise using the Platform, you confirm that you have read this Risk Disclosure Statement, that you understand it, and that you accept the risks described in it. You further confirm that:

• you are trading on your own account, or on an account you are lawfully entitled to operate;
• you have selected your parent account and set your own multipliers, limits and controls;
• you are solely responsible for every order placed in your linked accounts and for every consequence of it, including losses; and
• you have not relied on QuantGrid for advice of any kind, or for any assessment of whether a trade, a strategy or a parent account is suitable for you.

If you use QuantGrid AlgoTrader, you also confirm that you have read section 11 and accept the risks it describes, and that every strategy, rule, limit and setting AlgoTrader acts on in your account is your own.

This statement should be read with the Terms of Service, the Disclaimer and the compliance page. We may update this statement as the product, the market structure or the applicable rules change, and the date at the top of this page will reflect the current version.

11. QuantGrid AlgoTrader

QuantGrid AlgoTrader is trading software you install and run on your own computer, on Windows, macOS or Linux, and it is a separate product from trade replication. It follows no parent account. It places real orders in your real broker account, with real money at risk, from the rules, strategies and limits you write or configure in it.

What sections 2, 3, 7 and 8 say about market risk, leverage and margin, regulation and tax, and the absence of any guarantee applies to AlgoTrader in full: the market moves against an order it places exactly as it moves against one you place by hand. Sections 4, 5, 6 and 9 are about trade replication and how it goes wrong, though what section 6 says about illiquid instruments, exiting being harder than entering and wide spreads applies to AlgoTrader as well. AlgoTrader goes wrong in different ways, because it runs on your computer and acts on your rules, and this section sets them out. The last paragraph of section 10 is your acknowledgement for AlgoTrader. Like the rest of this statement, this section is not exhaustive.

Your own strategies and settings

QuantGrid AlgoTrader does exactly what your strategies, rules, limits and settings say, including when they are wrong. A bug in a Python strategy, a block wired the wrong way in Flow, a missing or mistyped stop loss or exit rule, a wrong quantity, symbol or expiry, a schedule set to the wrong IST time, or a limit set too wide will each place real orders exactly as written, and can do so again and again before you notice. QuantGrid does not see, check or review the strategies you run, and AlgoTrader does not judge whether one is sensible. Verify your strategies, limits and settings before they place real orders and after every change, and watch them whenever they are live.

Sandbox results do not carry over to real orders

QuantGrid AlgoTrader's Sandbox mode runs your strategies against virtual capital and places no real orders with your broker. Its orders never reach the exchange, so they meet no real queue, no real liquidity, no broker risk check and no real fill: slippage, partial fills, rejections, margin shortfalls, charges and the effect of your own orders on the price can all be different in real trading, or missing from Sandbox mode altogether. What a strategy does in Sandbox mode is not an indication of what it will do with real orders, real prices and real fills, and a strategy that behaved well there can lose money in your real account.

A strategy can stop, or fail to exit

QuantGrid AlgoTrader can act only while everything it depends on is in place. A strategy can stop placing orders, and can fail to place the exit you are relying on, when any of the following happens:

• Your daily broker login lapses or is not done. SEBI requires broker API sessions to end every day and a fresh two-factor login each trading day. Until you log in, AlgoTrader cannot place orders in that account, exits included.
• Your computer sleeps, shuts down or loses power. Sleep, hibernation, a restart for an operating system update, a flat laptop battery or a power cut each stop AlgoTrader until the computer is running again and the app is open.
• Your computer loses its connection. Without a working internet connection AlgoTrader cannot reach your broker, and a slow or unstable one can delay an order or stop it arriving.
• The app is closed or restarted. Closing AlgoTrader, a crash, or a restart to apply an update can stop a strategy part way through what it was doing.
• Your Licence is stopped or ends. A Licence is stopped when a renewal is still unpaid at the end of its grace period, and ends when your cancellation takes effect. As clause 18.4 of the Terms of Service says, a strategy that was running may then no longer be able to place orders, its exits included.

The dedicated static IP route and the relay

SEBI's framework for retail algorithmic trading requires every order sent through a broker API to come from a static IP address registered with the broker. QuantGrid AlgoTrader therefore sends its order traffic to your broker through a QuantGrid relay, so that it leaves from your Licence's dedicated static IP address. If that route is not available, orders cannot reach your broker, exits included, until it is back. That can happen because the relay or the address is down or under maintenance, because your computer cannot reach the relay, or because the address is not registered with your broker or your broker has not applied it yet.

Market data reaches your computer from your broker directly, so AlgoTrader can go on showing live prices while its orders cannot get through. The uptime commitment in our Terms covers trade replication only. It does not cover AlgoTrader, including the dedicated static IP that comes with a Licence, the relay that carries its orders and the sign-in we provide for it (clause 18.9 of the Terms of Service).

Your broker, the exchange and the software itself

QuantGrid AlgoTrader sends your orders to your broker, and your broker and the exchange decide what happens to them. Any of the following can delay an order, refuse it or stop it being placed, an exit included:

• Your broker rejects the order. Your broker can refuse an order AlgoTrader sends for insufficient funds or margin, its own risk checks, position or exposure limits, product or instrument restrictions, an instrument under a ban period, or a quantity above the exchange's freeze limit. Nothing in AlgoTrader can force through an order your broker refuses.
• Your broker's API goes down or slows. Broker APIs go down, degrade, queue or throttle requests, particularly at the open, at expiry and during high volatility, so an order can be answered late or not at all.
• Exchange and clearing incidents. Technical halts, trade annulments, settlement issues and session extensions are decided by the exchange, not by us.
• Defects in the software. AlgoTrader can contain defects, including in its open-source components and in an update, that place an order you did not intend or fail to place one you did.
• Someone else using your computer or your API key. Anyone who can use the computer AlgoTrader runs on, or who obtains the broker API key and secret stored on it, can place orders in your broker account.

A broker account shared with trade replication

Your broker limits how many requests and orders one broker account may send in a given time. If the broker account you connect to QuantGrid AlgoTrader is also linked to QuantGrid trade replication, both products send requests on that account and draw on the same limits, and your broker refuses or delays whatever goes over them. A burst of activity in one product can then delay or refuse an order from the other, an exit included. If that account is a parent account in trade replication, every order AlgoTrader places in it is replicated to its child accounts under the copy settings you configured, like any other order placed there.

Trade replication's own controls reach that account too. If it is a parent or a child account in a trade replication copy configuration, trade replication's scheduled square-off, scheduled order cancel, Square Off All and Cancel All Orders act on the account's whole book, except positions you have hidden in trade replication. They can close positions AlgoTrader opened and cancel orders it placed, its exits and stop-loss orders included, whatever your rules in AlgoTrader say. If it is a child account on which AlgoTrader has been allowed to trade, the positions AlgoTrader opens there are measured against the parent like any others, so they show as differences from the parent and can be offered to you for correction by a rebalance.

Updates can change how it behaves

On Windows and Linux, QuantGrid AlgoTrader updates itself in the background and applies each update when you restart it; on a Mac, you install each new version yourself. Either way, an update can change how a feature, a setting, a calculation or a broker connection works, and so how a strategy behaves. Check that your strategies and settings still do what you expect after each update, before they place real orders.

Market and liquidity risk

An order QuantGrid AlgoTrader places meets the same market as any other order. Prices can gap past a stop level, an illiquid strike or a thinly traded stock can fill far from the price on your screen, a circuit limit or a halt can stop you exiting, and a market order fills at whatever price the book offers. Section 2 describes these risks in full, and what section 6 says about illiquid instruments, harder exits and wide spreads applies here too. Running a strategy automatically does not reduce any of them, and a strategy that trades often or in size meets them more often.

No advice and no strategy from QuantGrid

QuantGrid gives you no investment advice and no strategy. We do not choose, suggest or review any trade, instrument, strategy, rule or limit, and the analytics, charts, option chain, Greeks and alerts in QuantGrid AlgoTrader are information about the market, not a suggestion to trade; they can be delayed, incomplete or wrong. We make no representation about the outcome of any order AlgoTrader places or of any strategy you run in it.

QuantGrid does not offer, promise or imply any profit, assured return or performance outcome, and does not share in your profits or losses.

QuantGrid AlgoTrader is trading software that runs on your computer. QuantGrid is not registered with SEBI, does not provide investment advice, and does not guarantee any return. Trading in securities carries substantial risk of loss. You are solely responsible for your trades.