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Risk Disclosure

This Risk Disclosure outlines the key risks associated with investing and trading in equity shares, derivatives, and other securities traded on Indian stock exchanges. Investors are advised to read this document carefully before participating in the securities market.

Stock exchanges, SEBI, or any regulatory authority do not guarantee the accuracy, adequacy, or completeness of information and do not assure profits or protection from losses. Participation in the market is subject to inherent risks.

General Investment Risks

  • Past performance is not indicative of future results.
  • No assurance can be given that investment objectives will be achieved.
  • Investments in equities and derivatives are subject to market risks and price fluctuations.
  • Investors should undertake transactions only after understanding the nature of the instruments and their exposure to risk.

Trading may not be suitable for investors with limited financial resources, limited experience, or low risk tolerance.

Equity Market Risks

  • Market volatility can result in sharp price movements, leading to potential losses.
  • Thinly traded stocks may experience higher volatility and execution challenges.
  • Equity prices are affected by company performance, economic conditions, government policies, and global events.

Volatility & Drawdowns

  • Market volatility may cause temporary or prolonged declines in portfolio value.
  • Sudden market movements due to news or events may result in losses.
  • Orders may be partially executed, delayed, or executed at prices significantly different from expected levels.

Liquidity & Concentration Risk

  • Wide bid-ask spreads may occur in less liquid securities.
  • Concentration in specific stocks, sectors, or themes may increase portfolio risk.
  • Certain securities may have low liquidity, making it difficult to buy or sell at favourable prices.

Order Execution & System Risks

  • Trading halts, circuit limits, or exchange actions may restrict buying or selling temporarily.
  • System outages, technical glitches, or network congestion may impact order placement or execution.
  • Stop-loss, limit, or other risk-reducing orders may not always execute as intended due to rapid market movements.

Liquidity & Concentration Risk

  • Wide bid-ask spreads may occur in less liquid securities.
  • Concentration in specific stocks, sectors, or themes may increase portfolio risk.
  • Certain securities may have low liquidity, making it difficult to buy or sell at favourable prices.

News, Events & Rumour Risk

  • Investors are advised to act based on verified information and research.
  • Prices may react sharply to news announcements, corporate actions, or economic developments.
  • Market rumours may influence prices and should not be relied upon for decision-making.

Derivatives-Specific Risks

  • Losses may exceed the initial margin amount.
  • Small margin requirements can result in disproportionate gains or losses.
  • Daily mark-to-market settlements may require additional margin payments.
  • Derivatives are leveraged instruments and involve higher risk compared to cash market investments.
  • Failure to meet margin requirements may lead to forced liquidation by the broker.

Options & Futures Risks

  • Option buyers may lose the entire premium paid if the option expires worthless.
  • Option writers face potentially unlimited losses if markets move against their position.
  • Complex strategies involving multiple options or hedging carry additional risks and require advanced understanding.

Currency & Macro Risks

  • These factors are beyond the control of any advisor or intermediary.
  • Currency fluctuations can impact returns on foreign-currency-denominated investments.
  • Interest rate changes, inflation, geopolitical events, and government policies may affect market outcomes.

Investor Responsibility Statement

  • All investment and trading decisions are taken at the investor's sole discretion and risk.
  • Trinetra provides research and advisory inputs only and does not execute trades or guarantee returns.
  • Investors are responsible for understanding risks, complying with regulations, and executing transactions through their brokers.
  • No transaction can be cancelled on the grounds of market losses.

Important Note

  • Read all relevant documents carefully.
  • Understand product features and risks.
  • Seek independent professional advice if unsure.

Participation in securities markets should be aligned with individual financial goals, risk tolerance, and investment horizon.