Risk Disclosure

Last updated: August 2026

⚠️ IMPORTANT RISK DISCLOSURE: Trading in equity markets involves substantial risk of loss. You may lose all or more than your invested capital. Past performance is not a guarantee of future results. Read this document carefully before using DAlgo.

1. General Market Risk

Equity markets are volatile. Prices can fall sharply and may not recover. Economic conditions, global events, and company-specific news can cause sudden large losses.

2. Algorithmic Trading Specific Risks

  • System failures: server downtime can prevent order execution.
  • Network outages: internet connectivity issues can cause missed signals.
  • API rate limiting: Zerodha may throttle API calls during peak periods.
  • Timing risk: cron-based execution means orders may be placed minutes after a signal fires.
  • Configuration risk: incorrect strategy parameters can lead to unintended trades.

3. Strategy-Specific Risks

  • Mean reversion (Accumulator): works in ranging markets, may produce losses in strong trending markets.
  • Momentum (Catalyst/Market Boom): can amplify losses if momentum reverses unexpectedly.
  • Breakout (Pivotal): false breakouts can trigger losses.
  • No strategy guarantees profit in all market conditions.

4. Capital Risk

  • Never deploy capital you cannot afford to lose.
  • Diversify across strategies and symbols.
  • Monitor your account regularly even in auto mode.

5. Regulatory Risk

SEBI regulations may change. Tax laws on trading profits may change. Zerodha's API terms may change.

6. DAlgo Is Not An Advisor

DAlgo is a software platform only. DAlgo is NOT registered with SEBI as an investment advisor or portfolio manager. All strategies, parameters, and trading decisions are entirely yours.

We strongly recommend consulting a SEBI-registered investment advisor before deploying significant capital.