Risk Disclosure

1. IMPORTANT NOTICE

FINANCIAL MARKETS INVOLVE SUBSTANTIAL RISK. Trading and investing in financial markets can result in partial or complete loss of capital. The information, courses, educational materials, examples, charts, strategies, tools, simulations, market commentary, and other content provided by ChartWise Academy are intended for educational and informational purposes only. Nothing provided by ChartWise Academy should be interpreted as:

• A guarantee of profit
• A guarantee of investment returns
• Personalized investment advice
• A recommendation to buy or sell a security
• A promise of trading success
• A guarantee of avoiding losses
• A substitute for professional financial, legal, or tax advice

You are solely responsible for your financial decisions and the risks you choose to take.

2. UNDERSTAND THE RISK BEFORE PARTICIPATING

Before trading or investing, you should understand:

• The financial instrument
• How the instrument is priced
• Potential profit and loss
• Maximum possible loss
• Leverage and margin requirements
• Transaction costs
• Liquidity
• Volatility
• Settlement procedures
• Tax implications
• Applicable laws and regulations
• Whether the activity is appropriate for your circumstances

If you do not understand an instrument or strategy, you should not trade it with real money until you have obtained sufficient knowledge and, where appropriate, professional advice.

3. NO GUARANTEE OF PROFITS

ChartWise Academy does not guarantee that any course, strategy, indicator, methodology, trading system, algorithm, model, or educational approach will generate profits. There is no guarantee that:

• A trading strategy will work
• A historical pattern will repeat
• A market forecast will be correct
• A technical indicator will predict price movements
• A fundamental analysis will correctly estimate value
• A quantitative model will perform in live markets
• A backtested strategy will remain profitable
• A learner will achieve any particular financial result

Past performance does not guarantee future performance.

4. CAPITAL LOSS

You may lose some or all of the money committed to financial markets. In certain leveraged products or circumstances, losses can potentially exceed the amount initially expected or deposited, depending on the product, account structure, contractual terms, and applicable rules. Never commit capital that you cannot afford to lose.

5. MARKET VOLATILITY RISK

Financial markets can experience rapid and unexpected price movements. Volatility may increase because of:

• Economic announcements
• Central-bank decisions
• Elections and political developments
• Geopolitical events
• Corporate announcements
• Earnings releases
• Interest-rate changes
• Currency movements
• Commodity shocks
• Regulatory changes
• Market-wide risk events
• Unexpected news

During highly volatile conditions:

• Stop-loss orders may execute at prices different from the intended level
• Spreads may widen
• Liquidity may decline
• Slippage may increase
• Orders may be delayed
• Prices may move significantly before an order can be executed

6. LIQUIDITY RISK

Liquidity refers broadly to the ability to buy or sell an asset without causing a substantial price impact. Low-liquidity instruments may experience:

• Wider bid-ask spreads
• Greater slippage
• Limited order-book depth
• Difficulty entering or exiting positions
• Larger price gaps
• Higher transaction costs

Liquidity can change rapidly, particularly during market stress.

7. SLIPPAGE RISK

The price at which a trade is actually executed may differ from the price displayed when the order is submitted. This difference is known as slippage. Slippage may occur because of:

• Rapid price movement
• Low liquidity
• Large orders
• Market gaps
• News events
• Exchange conditions
• Network or technological delays

Backtested or theoretical results may not fully reflect real-world slippage.

8. LEVERAGE RISK

Leverage allows a trader to control a position larger than the amount of capital committed as margin. Leverage can magnify both profits and losses. A small movement in the underlying asset can produce a comparatively large change in account equity. High leverage may result in:

• Rapid losses
• Margin calls
• Forced liquidation
• Reduced ability to withstand volatility
• Significant drawdowns

Learners should understand leverage completely before using leveraged products.

9. MARGIN RISK

Margin requirements may change depending on:

• Market conditions
• Exchange rules
• Broker policies
• Volatility
• Position size
• Product type
• Regulatory requirements

A trader may be required to provide additional funds or reduce a position. Failure to satisfy applicable margin requirements may result in forced position closure.

10. INTRADAY TRADING RISK

Intraday trading involves attempting to profit from relatively short-term price movements. It may involve:

• High trading frequency
• Leverage
• Rapid decisions
• Transaction costs
• Slippage
• Volatility
• Psychological pressure

A large number of trades can cause transaction costs to accumulate significantly. There is no guarantee that an intraday strategy will produce positive results.

11. SWING AND POSITIONAL TRADING RISK

Swing and positional trades may remain open for several days, weeks, or longer. Risks include:

• Overnight price gaps
• Weekend gaps
• Corporate announcements
• Earnings events
• Economic developments
• Changes in market sentiment
• Liquidity changes
• Unexpected news

A stop-loss does not necessarily guarantee execution at the exact specified price.

12. STOCK MARKET RISK

Individual stocks may experience significant price movements. Risks may arise from:

• Company performance
• Earnings
• Debt
• Management decisions
• Corporate governance
• Competition
• Regulatory changes
• Litigation
• Industry disruption
• Macroeconomic conditions
• Corporate actions
• Unexpected events

An investment in an individual company may carry substantially greater concentration risk than a diversified portfolio.

13. EQUITY INVESTMENT RISK

Equity investments can lose value. A company that appears financially strong may subsequently experience:

• Declining revenue
• Lower profitability
• Increased debt
• Loss of market share
• Management problems
• Regulatory issues
• Technological disruption
• Other adverse developments

Fundamental analysis reduces neither uncertainty nor investment risk to zero.

14. DERIVATIVES RISK

Futures and options are derivative instruments and may involve substantial risk. Their value may depend on:

• Underlying price
• Volatility
• Time to expiry
• Interest rates
• Dividends
• Supply and demand
• Market liquidity
• Other factors

Derivative losses can develop quickly, particularly when leverage is involved.

15. OPTIONS RISK

Options are complex instruments. Option buyers can lose the premium paid. Option sellers may face substantially larger losses depending on the strategy and circumstances. Risks include:

• Time decay
• Implied-volatility changes
• Gamma exposure
• Assignment
• Settlement risk
• Liquidity risk
• Gap risk
• Volatility crush
• Early exercise where applicable
• Rapid changes in option premiums

A strategy that has a defined maximum loss under a theoretical payoff model may still experience execution, liquidity, gap, or other practical risks.

16. OPTION GREEKS RISK

The Greeks provide theoretical measures of option sensitivity. They include: Delta; Gamma; Theta; Vega; and Rho. Greeks are not guarantees of future price movements. They can change as: Underlying prices move; Volatility changes; Time passes; Interest rates change; and Market conditions evolve.

17. IMPLIED VOLATILITY RISK

Implied volatility ("IV") represents market-implied expectations concerning future volatility within an option-pricing framework. IV can change rapidly. A trader can be correct about the direction of an underlying asset and still experience a loss because of:

• Declining implied volatility
• Time decay
• Strike selection
• Expiration effects
• Other option-pricing factors

18. FUTURES RISK

Futures contracts involve leverage and margin. A relatively small movement in the underlying market can produce a significant gain or loss relative to the margin deposited. Futures traders may face:

• Margin calls
• Forced liquidation
• Contract rollover
• Basis risk
• Liquidity risk
• Price gaps
• Settlement risk

19. COMMODITY TRADING RISK

Commodity prices can be highly volatile. Factors may include:

• Supply and demand
• Weather
• Inventory
• Geopolitical developments
• Currency movements
• Interest rates
• Government policies
• Production disruptions
• Transportation constraints
• Global economic conditions

Commodity futures and options may involve substantial leverage.

20. GOLD AND PRECIOUS-METAL RISK

Gold, silver, and other precious metals may be influenced by:

• Interest rates
• Real yields
• Currency movements
• Inflation expectations
• Central-bank activity
• Geopolitical events
• Investment flows
• Global risk sentiment

Precious-metal prices can decline significantly despite long-term bullish narratives.

21. ENERGY COMMODITY RISK

Crude oil and natural gas can experience extreme volatility. Prices may be affected by:

• OPEC/OPEC+ decisions
• Production changes
• Inventories
• Weather
• Geopolitical events
• Transportation disruptions
• Refining capacity
• Demand changes
• Global economic activity

Energy markets may experience sudden price gaps and substantial volatility.

22. AGRICULTURAL COMMODITY RISK

Agricultural commodities may be affected by:

• Weather
• Crop conditions
• Seasonal patterns
• Government policies
• Export restrictions
• Inventory
• Global production
• Transportation
• Currency movements
• Unexpected supply disruptions

Historical seasonality does not guarantee future price behaviour.

23. CRYPTOCURRENCY RISK

Cryptocurrency and digital-asset markets involve significant risk. Prices can change dramatically within short periods. Risks include:

• Extreme volatility
• Liquidity risk
• Exchange failure
• Counterparty risk
• Cyberattacks
• Wallet compromise
• Private-key loss
• Smart-contract vulnerabilities
• Fraud
• Market manipulation
• Regulatory changes
• Permanent loss of assets

Digital assets may lose a substantial portion or potentially all of their value.

24. CRYPTOCURRENCY CUSTODY RISK

Users who hold digital assets may be responsible for protecting:

• Private keys
• Seed phrases
• Wallet credentials
• Authentication credentials
• Other security information

Loss or compromise of such information may result in permanent loss of assets. Never disclose private keys or seed phrases to ChartWise Academy or any person claiming to represent ChartWise Academy.

25. CRYPTO EXCHANGE RISK

Cryptocurrency exchanges may experience:

• Hacking
• Insolvency
• Withdrawal restrictions
• Operational failures
• Regulatory intervention
• Technical outages
• Liquidity problems

The existence of a trading platform does not guarantee the safety of deposited assets.

26. FOREX RISK

Foreign-exchange markets can experience substantial volatility. Currency movements may be affected by:

• Interest rates
• Inflation
• Central-bank policies
• Economic growth
• Employment
• Trade balances
• Political developments
• Geopolitical events
• Market sentiment

Leverage can substantially magnify forex losses.

27. FOREX REGULATORY RISK FOR INDIAN RESIDENTS

Indian residents should carefully verify the legality and regulatory status of any forex transaction or platform before participating. Forex transactions undertaken by residents of India are subject to applicable Indian foreign-exchange laws, RBI directions, and related requirements. ChartWise Academy does not encourage participation through unauthorised forex platforms. Users should independently verify whether a forex intermediary or electronic trading platform is appropriately authorised.

28. CURRENCY CORRELATION RISK

Currency pairs can be correlated. Holding several positions that appear diversified may actually create substantial exposure to the same underlying factor. For example, multiple positions may be affected simultaneously by:

• The US dollar
• Interest rates
• Risk sentiment
• Commodity prices
• Central-bank policy

Correlation can also change over time.

29. INTEREST-RATE AND MACROECONOMIC RISK

Changes in: Interest rates; Inflation; Monetary policy; Government spending; Employment; Economic growth; Bond yields; and Currency conditions — can significantly affect financial markets. Unexpected macroeconomic developments may invalidate previously reasonable assumptions.

30. EVENT AND NEWS RISK

Markets can react rapidly to:

• Central-bank decisions
• Economic data
• Elections
• Corporate earnings
• Mergers and acquisitions
• Regulatory announcements
• Geopolitical developments
• Natural disasters
• Unexpected news

Trading around major events can involve unusually high volatility and execution risk.

31. GAP RISK

Prices can move from one level to another without trading continuously through every intermediate price. Gaps can occur:

• Overnight
• Over weekends
• After corporate announcements
• During major economic events
• During extraordinary market conditions

A stop-loss may not protect against all losses associated with a gap.

32. TECHNICAL ANALYSIS RISK

Technical analysis is based on historical price and market data. Technical patterns and indicators are not guaranteed predictors of future price movements. Risks include:

• False breakouts
• Failed patterns
• Indicator lag
• Conflicting signals
• Market-regime changes
• Subjective interpretation
• Data limitations

No technical indicator should be treated as infallible.

33. FUNDAMENTAL ANALYSIS RISK

Fundamental analysis relies on assumptions and available information. Financial statements, forecasts, valuation models, and economic assumptions can contain:

• Errors
• Uncertainty
• Accounting differences
• Forecast inaccuracies
• Changing assumptions

A company may remain fundamentally attractive while its market price declines substantially.

34. VALUATION MODEL RISK

Valuation techniques such as: Discounted Cash Flow; P/E; P/B; EV/EBITDA; Dividend models; and Other valuation methods — depend on assumptions. Small changes in: Growth; Margins; Discount rates; Terminal values; or Other assumptions — can materially change estimated valuation. A valuation estimate is not a guaranteed fair price.

35. QUANTITATIVE MODEL RISK

Quantitative models may fail because of:

• Incorrect assumptions
• Poor-quality data
• Structural market changes
• Model instability
• Parameter sensitivity
• Non-stationarity
• Unexpected events
• Implementation errors

A mathematically sophisticated model is not automatically a profitable model.

36. ALGORITHMIC TRADING RISK

Automated trading systems can introduce additional risks. These may include:

• Programming errors
• Data errors
• Connectivity failures
• API failures
• Incorrect order logic
• Duplicate orders
• Excessive trading
• Unexpected market conditions
• Server failures
• Security vulnerabilities

An automated system can execute an incorrect decision much faster than a human.

37. BACKTESTING RISK

Backtested performance is hypothetical. A backtest may not accurately represent live trading because of:

• Look-ahead bias
• Survivorship bias
• Overfitting
• Data-mining
• Selection bias
• Unrealistic execution assumptions
• Ignoring transaction costs
• Ignoring market impact
• Ignoring liquidity constraints
• Historical data limitations

A successful backtest does not guarantee future profitability.

38. PAPER-TRADING AND SIMULATION RISK

Paper trading and simulations can be useful educational tools. However, simulated environments may not reproduce:

• Real emotions
• Slippage
• Liquidity
• Market impact
• Order execution
• Transaction costs
• Other live-market conditions

Successful paper trading does not guarantee successful live trading.

39. TRANSACTION COST RISK

Trading results can be affected by:

• Brokerage
• Exchange charges
• Taxes
• Regulatory fees
• Bid-ask spreads
• Slippage
• Financing costs
• Data costs
• Other expenses

A strategy that appears profitable before costs may become unprofitable after costs.

40. TECHNOLOGY AND EXECUTION RISK

Electronic trading depends on technology. Risks include:

• Internet outages
• Platform failures
• Server downtime
• Hardware failure
• Software bugs
• API failures
• Incorrect data
• Cyberattacks
• Power interruptions
• Communication failures

Technology problems can prevent timely execution or risk management.

41. COUNTERPARTY RISK

When using a broker, exchange, platform, payment provider, or other intermediary, there may be risks associated with that entity's:

• Financial condition
• Operational stability
• Security
• Regulatory status
• Solvency
• Policies
• Ability to process transactions

Users should conduct appropriate due diligence.

42. REGULATORY RISK

Financial-market laws and regulations can change. Changes may affect:

• Trading products
• Margin
• Leverage
• Taxation
• Reporting
• Broker availability
• Cryptocurrency
• Forex
• Derivatives
• Investment products
• Other financial activities

Educational information may become outdated after regulatory changes. Users should verify current requirements with the appropriate regulator or professional adviser.

43. TAX RISK

Trading and investment activities may create tax obligations. The applicable tax treatment may depend on:

• Instrument
• Transaction type
• Holding period
• Nature of income
• Investor/trader status
• Jurisdiction
• Turnover
• Applicable tax laws
• Changes in legislation

ChartWise Academy does not provide individualized tax advice. Consult a qualified tax professional for your circumstances.

44. PSYCHOLOGICAL RISK

Financial losses can create emotional and psychological pressure. Trading behaviour may be affected by:

• Fear
• Greed
• FOMO
• Revenge trading
• Overconfidence
• Confirmation bias
• Loss aversion
• Impatience
• Stress
• Excessive risk-taking

Educational knowledge does not eliminate behavioural risk.

45. CONCENTRATION RISK

Concentrating capital in: One stock; One sector; One strategy; One asset class; One currency; One commodity; or One digital asset — can significantly increase portfolio risk. Diversification can reduce certain risks but cannot eliminate market losses.

46. CORRELATION RISK

Assets that appear diversified may become highly correlated during periods of market stress. Correlation is not constant. A portfolio that appears diversified under normal conditions may experience simultaneous losses during a major market event.

47. STRATEGY FAILURE RISK

Every trading strategy has conditions under which it may perform poorly. Examples include:

• Trend-following strategies failing in sideways markets
• Mean-reversion strategies failing during strong trends
• Breakout strategies experiencing false breakouts
• Momentum strategies suffering during abrupt reversals
• Options-selling strategies facing volatility expansion
• Fundamental strategies facing unexpected business developments

No strategy works in every market regime.

48. MARKET-REGIME RISK

Market behaviour can change. A strategy that performs well during trending markets may perform poorly during range-bound markets. Similarly, a strategy developed under low-volatility conditions may behave differently during high-volatility periods. Learners should understand regime dependence when evaluating strategies.

49. LIQUIDATION RISK

Leveraged positions may be forcibly closed when account equity or margin falls below applicable requirements. Forced liquidation may occur during rapidly changing markets and may result in losses that differ from theoretical calculations.

50. SHORT-SELLING RISK

Short selling involves the risk that the price of the asset rises instead of falls. Depending on the instrument and applicable rules, short positions may face:

• Potentially significant losses
• Borrowing costs
• Margin requirements
• Forced covering
• Short squeezes
• Liquidity constraints

51. GAP AND STOP-LOSS LIMITATIONS

A stop-loss is a risk-management mechanism, not a guarantee of maximum loss. During fast markets or gaps, the actual execution price may differ materially from the intended stop price. This can result in losses greater than the amount initially expected.

52. EDUCATIONAL EXAMPLES

Charts, examples, hypothetical trades, strategy demonstrations, calculations, and case studies used by ChartWise Academy are for educational purposes. An example does not mean:

• The same setup will occur again
• The same result will occur again
• The strategy is suitable for you
• The strategy will generate a profit

53. MARKET DATA RISK

Market data used in educational material may be:

• Delayed
• Incomplete
• Incorrect
• Reconstructed
• Subject to revisions
• Different between providers

Users should verify important real-time information with an appropriate primary source before making financial decisions.

54. NO PERSONALIZED SUITABILITY ASSESSMENT

Unless explicitly provided through a separately authorized and appropriately structured service, ChartWise Academy does not conduct individualized suitability assessments for learners. A course may be educationally appropriate while a particular financial instrument or strategy may not be financially appropriate for an individual. Users are responsible for assessing their own circumstances.

55. NO CUSTODY OF FUNDS

ChartWise Academy does not ordinarily:

• Accept trading capital
• Manage investment funds
• Hold securities
• Operate trading accounts
• Execute trades on behalf of customers
• Guarantee repayment of trading losses

Customers should never transfer trading capital to individuals claiming to represent ChartWise Academy unless the transaction is explicitly authorized and verified.

56. FRAUD AND IMPERSONATION RISK

Users should be cautious of individuals who:

• Promise guaranteed returns
• Offer "sure-shot" trading calls
• Claim to recover trading losses
• Request account passwords
• Request OTPs
• Request UPI PINs
• Request cryptocurrency seed phrases
• Request private keys
• Ask for money to trade on the user's behalf
• Impersonate ChartWise Academy representatives

ChartWise Academy does not authorize such activities.

57. FINANCIAL DISTRESS AND RESPONSIBLE PARTICIPATION

Trading should not be treated as a guaranteed source of income. Users should not:

• Borrow money solely to speculate
• Use essential household funds for trading
• Risk emergency savings
• Increase leverage to recover losses
• Chase losses
• Take progressively larger positions after losing trades
• Treat trading as a guaranteed salary

If financial losses are causing significant distress, users should stop trading and seek appropriate professional support.

58. NO GET-RICH-QUICK PROMISE

ChartWise Academy does not represent that financial-market participation is a quick or easy way to become wealthy. Developing market knowledge requires: Time; Practice; Research; Discipline; Risk management; Testing; and Continuous learning. No course can guarantee financial success.

59. PROFESSIONAL ADVICE

Before making a significant financial decision, users should consider consulting an appropriately qualified professional, such as:

• A SEBI-registered Investment Adviser, where applicable
• A SEBI-registered Research Analyst, where applicable
• A qualified Chartered Accountant
• A tax professional
• A lawyer
• Another appropriately qualified professional

ChartWise Academy's educational content is not a substitute for individualized professional advice.

60. USER RESPONSIBILITY

By accessing ChartWise Academy's educational materials, you acknowledge that:

1. Financial markets involve risk
2. You may lose money
3. No strategy guarantees profit
4. Historical performance does not guarantee future results
5. You are responsible for your own financial decisions
6. You should understand an instrument before trading it
7. You should consider your personal financial circumstances
8. You should verify applicable laws and regulations
9. You should independently evaluate third-party platforms
10. You should seek professional advice where appropriate

61. REGULATORY INFORMATION

ChartWise Academy is an educational platform unless expressly stated otherwise. Nothing on this Website should be interpreted as a representation that ChartWise Academy is a:

• SEBI-registered Investment Adviser
• SEBI-registered Research Analyst
• Stock Broker
• Portfolio Manager
• Commodity Broker
• Forex Broker
• Cryptocurrency Exchange
• Other regulated financial intermediary

unless the applicable registration is expressly disclosed. Users should refer to our India-Specific Regulatory & Legal Disclosure for additional information.

62. CHANGES TO THIS RISK DISCLOSURE

Financial-market risks can evolve as markets, products, technologies, and regulations change. ChartWise Academy may update this Risk Disclosure periodically. The "Last Updated" date will be revised when material changes are made. Users should review this page periodically.

63. CONTACT US

If you have questions regarding this Risk Disclosure or ChartWise Academy's educational services, please contact us.

64. FINAL RISK WARNING