Mandatory Reading
Risk Disclosure
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NOT SEBI REGISTERED: ATM Algo / ATM Indicator is not registered with SEBI as an Investment Adviser, Research Analyst, or Stock Broker. We operate solely as a technology-based educational platform. Users requiring SEBI-registered investment advisory services are advised to consult a SEBI-registered Investment Adviser independently before using this platform.
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Mandatory Reading: This Risk Disclosure Statement must be read in full before using ATM Algo. By activating any algorithm, you confirm you have read and accepted every section below.
01
Risk at a Glance
Market Risk
Price Volatility
Very High
Leverage Risk
Options Premium
Critical — 100% loss possible
Technology Risk
API / Connectivity
Moderate–High
Token Risk
Expiry Mid-Trade
High — User Managed
02
General Market Risk
- Price Risk: Options premiums can go to zero, resulting in complete loss of all capital deployed in that position
- Volatility Risk: Sudden India VIX spikes or unexpected events can produce results contrary to any algorithm's design
- Liquidity Risk: In stressed market conditions, orders may not execute at desired prices, causing adverse slippage
- Gap Risk: Overnight gaps or circuit-breaker moves can cause losses beyond intended stop-loss levels before execution
- Systemic Risk: Geopolitical crises, RBI policy changes, or global crashes can affect all positions adversely regardless of strategy
- Expiry Risk: Weekly/monthly options expiry can see exponential theta decay and extreme gamma moves within minutes
03
Options-Specific Risks
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Options are high-risk instruments. A small adverse move in NIFTY / BANKNIFTY can result in disproportionately large losses in option premiums, up to and including total loss of premium paid.
- Time Decay (Theta): Options lose value daily as expiry approaches, independently of market direction. ATM options have high daily theta erosion.
- ATM Options Sensitivity: High delta and gamma mean even small underlying moves cause large percentage changes in premium value
- Complete Loss of Premium: A long options position can expire worthless — 100% loss of capital in that position
- IV Crush: A collapse in implied volatility post-event can cause premiums to fall sharply even if direction is correct
- Intraday Extreme Moves: NSE/BSE options can exhibit extreme moves within minutes near market open and close
04
Leverage Risk
⚠ Leverage Warning
Options trading involves significant leverage. The premium paid for an option contract represents a fraction of the total contract value it controls. As a result, even small market movements can result in disproportionately large losses relative to the premium paid. For example, a 1% adverse move in the underlying can result in a 20%–50% or greater loss in the option premium value depending on the strike, expiry, and implied volatility.
Leverage amplifies both gains and losses. Users must understand that the leverage inherent in options trading means that the potential for rapid and complete loss of capital is significantly higher than in direct equity trading. Never allocate more capital to options trading than you can afford to lose entirely.
05
Algorithmic & Technology Risks
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Algorithmic trading does NOT eliminate risk. Automated systems follow pre-set rules and cannot adapt to unprecedented events the way a human might intervene. Past algorithm performance does not guarantee future results under changed market conditions.
- Execution & Slippage Risk: Execution price may differ from signal price in fast or illiquid markets
- Technology Risk: Server downtime, software bugs, or platform outages may cause missed entries/exits or unintended open positions
- Broker API Risk: Broker API failures, rate limits, or maintenance may prevent order execution at critical moments
- Overfitting Risk: Strategies optimised on historical data may not perform similarly in live changed market conditions
- Flash Crash Risk: In extreme market events, multiple stop-losses may trigger simultaneously before the system can respond
- Platform Downtime Risk: Scheduled or unscheduled platform maintenance may affect algorithm execution during market hours
06
Access Token Expiry & Broker Override Risks
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Access Token Expiry Risk: Many broker APIs issue Access Tokens that expire daily (Zerodha, Upstox, Fyers). If your token expires while a position is open, the algorithm will be unable to place exit or stop-loss orders. You must ensure your token remains valid during market hours. ATM Algo does not guarantee real-time detection of token expiry and accepts no liability for losses arising from expired or invalid tokens.
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Broker Risk Management Override: Your broker may independently apply risk management controls that override or block orders placed by the ATM Algo system. This includes automatic square-off for margin shortfall, broker-imposed position limits, or exchange-level circuit breakers. ATM Algo has no control over or visibility into your broker's internal risk systems and accepts no liability for such overrides.
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No Profit Guarantee — Absolute Statement
⛔ Zero Profit Guarantee
ATM Algo makes ZERO representation, warranty, or guarantee of any specific profit level, income, or positive return. Risk-reward ratios (1:1, 1:2, 1:3) describe design intent — NOT promised outcomes. Past performance does not predict future results. All performance figures shown are illustrative and for educational purposes only.
08
Capital at Risk & Not Investment Advice
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Only invest capital you can afford to lose entirely. Never trade with borrowed money, emergency savings, retirement funds, or money required for essential living expenses. The total and complete loss of all capital deployed is a real and statistically possible outcome.
Nothing on the ATM Algo platform constitutes investment advice or a recommendation to buy or sell any security. ATM Algo is not SEBI-registered. Please consult a SEBI-registered Investment Adviser (IA) before making financial decisions.
09
User's Sole Responsibility
- You are solely and entirely responsible for all trading decisions and outcomes in your broker account
- You are responsible for ensuring adequate capital and margin in your account at all times
- You are responsible for keeping your broker Access Token valid during market hours
- You are responsible for monitoring your open positions at all times, even during platform downtime
- ATM Algo, its founders, directors, employees, and associates shall NOT be held liable for any trading losses — direct or indirect — arising from use of this platform
✓ User Acknowledgement — By Activating Any Algorithm, You Confirm:
- I have read and fully understood this complete Risk Disclosure Statement
- I understand options trading involves leverage and significant risk of total capital loss
- I acknowledge ATM Algo is NOT SEBI-registered and does not provide investment advice
- I accept full and sole responsibility for all trading outcomes in my broker account
- I agree that ATM Algo is not liable for any losses arising from use of this platform
- I understand that past performance, risk-reward ratios, and P&L data are illustrative only
- I am using only capital I can afford to lose entirely
- I understand the Access Token expiry risk and will monitor my token validity during market hours
- I understand my broker may independently apply risk controls that override platform orders
- I understand platform downtime may occur and I am responsible for monitoring open positions