Risk Disclosure

Last updated: August 2026

SEBI Mandatory Risk Disclosure for Derivatives Trading
  1. 9 out of 10 individual traders (over 93%) in equity Futures and Options Segment incurred net losses across Indian exchanges.
  2. On average, loss makers registered net trading losses exceeding ₹ 50,000 to ₹ 1.25 Lakhs.
  3. Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as statutory levies, transaction fees, and brokerages.
  4. Top profit makers often faced severe drawdowns and reductions of 15% to 50% of gross profits in exchange fees, STT, and transaction friction.
Source: Studies published by the Securities and Exchange Board of India (SEBI) on Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options Segment.

1. Financial Trading Risks

Trading financial markets, including cash equities, commodities, and foreign exchange, carries a substantial level of risk and may not be suitable for all investors. You may lose some or all of your initial trading capital. Leveraged instruments amplify both potential gains and losses.

2. Derivatives & Options Warning

Options and futures trading are highly speculative activities that involve high leverage and rapid capital fluctuations. Under certain market regimes, exiting positions to limit losses can become difficult due to liquidity slippage. Make sure you understand these dynamics before committing capital.

3. Technological & Execution Failures

Electronic trading systems and third-party broker API sync integrations are subject to latency, connection drops, feed errors, and outages. MyFinanceSheet is not responsible for errors in performance tracking caused by broker data inaccuracies or API connection failure.

Execution Bridges & Webhook Orders: Integration capabilities with third-party order execution bridges (such as OpenAlgo) are provided strictly as technical utilities. All order parameters, contract types, quantities, and price limits are configured voluntarily by the user. MyFinanceSheet does not route funds, does not hold order books, and assumes no liability for execution latency, price slippage, feed drops, or rejected broker orders.

4. No Performance Guarantees

Past performance analysis, historical win-rates, backtester simulators, and AI Coaching advice do not guarantee future profitability. Market conditions can shift rapidly, making past regimes irrelevant. You remain solely responsible for your own trading setups and capital allocations.

AI Generative Model Disclaimer: Algorithmic suggestions and trade audits provided by the Dost AI Coach are generated using Large Language Models (LLMs) for reflective self-journaling. Generative AI models may occasionally produce false, inaccurate, or hallucinated feedback. AI outputs must NEVER be relied upon as financial advice, trading signals, or buy/sell recommendations.

Academy & Certification Risk Disclosure: Earning a Mastery Certificate or completing interactive masterclasses in the MyFinanceSheet Academy demonstrates theoretical comprehension of risk rules, options mechanics, and price action principles. It does NOT guarantee future profitability, eliminate market volatility, or protect your capital against execution losses in live market conditions. Trading always carries the risk of losing some or all of your invested capital.

5. SEBI Non-Advisory Status & Indian Compliance Declarations

MyFinanceSheet is strictly an analytical, journaling, and self-auditing SaaS platform. We are NOT a registered stockbroker, sub-broker, Portfolio Manager, Investment Adviser under SEBI (Investment Advisers) Regulations, 2013, or Research Analyst under SEBI (Research Analysts) Regulations, 2014.

We do not provide SEBI-registered investment advice, stock tips, portfolio management, buy/sell entry signals, or guaranteed wealth-generation systems. All statistical classifications, regime probability scores (Galton Board distribution), sector alpha matrices, and AI Coach conversations represent mathematical analysis of historical datasets for reflective education only.

You alone are solely responsible for determining whether any investment, security, or trading strategy is appropriate for your financial situation, risk tolerance, and investment objectives. All market orders must be placed voluntarily by you at your own discretion and risk.

6. Statutory Tax, Brokerage & Capital Gains Estimates Disclaimer

All transaction cost calculations, statutory tax itemizations (STT, GST, Stamp Duty, Exchange/SEBI Turnover Fees), and Estimated Capital Gains Tax figures provided across MyFinanceSheet are automated analytical approximations.

These estimates are computed using standard regulatory tariff schedules and user-configured rate presets for self-journaling analytics, trade drag visualization, and risk-management insights. They do not constitute official tax filings, accounting statements, or legal tax advice.

Actual brokerage and tax liabilities may differ due to broker rate plans, call-and-trade charges, physical delivery charges, DP charges, and applicable index surcharges. Always verify your net profit, loss, and transaction costs against the official digital Contract Notes issued by your SEBI-registered stockbroker and consult a qualified Chartered Accountant (CA) for official tax assessments and statutory filings.