Risk Disclosure

01 General Market Risk

The Indian securities markets are subject to fluctuations driven by macroeconomic conditions, monetary policy decisions, geopolitical events, corporate actions, regulatory changes, market sentiment, and many other factors. Prices of securities can rise and fall rapidly and unpredictably. WMAX makes no representation that the Services can predict or protect you from these movements.

02 No Guarantee of Returns

WMAX does not guarantee any specific return, profit, or outcome from the use of its intelligence, signals, models, or tools. Any party promising assured returns from securities markets is making a misleading representation that should be reported to SEBI. Returns from systematic trading strategies depend on numerous variables — including market conditions, execution timing, slippage, fees, taxes, and your individual risk management — many of which are outside our control.

03 Past Performance Disclaimer

All historical performance figures, backtest results, model accuracy statistics, and live track records published by WMAX are for illustrative and informational purposes only. Past performance — whether arrived at through backtest simulation or live execution — is not indicative of future results.

Backtested results are hypothetical and have inherent limitations, including but not limited to:

• The benefit of hindsight in strategy design
• The absence of real-time execution friction such as slippage, partial fills, and rejected orders
• The assumption of continuous market access and liquidity
• Reduced exposure to behavioural pressures that affect live trading

Live performance figures, while more representative, are still no guarantee that future results will be similar.

04 Equity Investment Risks

Investments in equity shares are subject to issuer-specific, sector-specific, and market-wide risks, including but not limited to:

• Price risk: share prices can decline due to weak company performance or broader market events;
• Liquidity risk: some securities may be difficult to buy or sell at desired prices;
• Corporate action risk: events such as mergers, demergers, or bankruptcies can impact value;
• Regulatory risk: changes in laws and SEBI regulations may affect specific sectors;
• Currency and macroeconomic risk: rupee depreciation, inflation, and interest-rate changes may affect outcomes.

05 Derivatives, Leverage & Margin Risk

Futures and options ("F&O") and other derivative instruments carry substantially higher risk than cash equity. Because derivatives are traded on margin, even small adverse price movements can result in losses that exceed your initial deposit. Specific risks include:

• Leverage effect: small percentage moves in the underlying can cause large percentage moves in your capital;
• Margin calls: you may be required to deposit additional funds at short notice;
• Time decay: options lose value as expiry approaches;
• Volatility risk: rapid changes in implied volatility can affect option premiums sharply;
• Liquidity risk: some contracts have thin order books, leading to wide spreads.

You should only trade derivatives if you fully understand these instruments and can withstand the financial consequences of loss.

06 Algorithmic & Quantitative Strategy Risk

WMAX strategies are rule-based and quantitatively derived. They are not immune to loss. Specific risks include:

• Model risk: the underlying assumptions of any quantitative model may break down during regime shifts, black-swan events, or unprecedented market conditions;
• Overfitting risk: historical patterns may not persist into the future;
• Execution risk: automated signals depend on broker APIs, network connectivity, and platform availability — any failure may result in missed entries or delayed exits;
• Data risk: errors or delays in market-data feeds can produce inaccurate signals.

07 Technology & Operational Risk

The Services depend on internet connectivity, cloud infrastructure, third-party broker APIs, and external data providers. Outages, software bugs, cyberattacks, hardware failures, or third-party service disruptions may impair access, delay signal delivery, or affect order execution. WMAX implements reasonable safeguards but cannot guarantee uninterrupted or error-free operation of the Services.

08 Suitability

The Services may not be suitable for all investors. Before using WMAX, you should carefully consider:

• Your investment objectives, time horizon, and financial situation;
• Your level of trading experience and knowledge of market mechanics;
• Your capacity to bear and recover from potential losses;
• Tax implications applicable to your individual circumstances.

Trading should be undertaken only with risk capital — funds whose loss would not materially impair your financial well-being.

09 Independent Advice Recommended

WMAX does not provide personalised investment advice tailored to your individual financial situation. You are strongly encouraged to consult an independent SEBI-registered investment adviser, a qualified financial planner, or a tax professional before making any investment decision. Nothing in the WMAX Services should be construed as a recommendation to buy, sell, or hold any security.

10 Acknowledgment

By using the WMAX Services, you acknowledge and confirm that:

• You have read and understood this Risk Disclosure in its entirety;
• You understand that all trading and investment decisions are your sole responsibility;
• You are aware of and accept the risks involved in trading securities and derivatives;
• You are using risk capital that you can afford to lose;
• You will not hold WMAX responsible for any losses you incur, whether direct or indirect.

If you do not agree with this Risk Disclosure, you must not use the Services.

For any clarification regarding this Risk Disclosure, please contact us at support@wmax.co.in.