Risk Disclosure

1. Substantial Risk of Loss

Trading in securities, and particularly in equity Futures & Options (F&O), involves a substantial risk of loss. Published SEBI studies on retail F&O participation in India indicate that approximately 91% of retail traders in equity F&O lose money. You should not subscribe to or use Sleeping Trade unless you are prepared to accept the possibility of significant financial loss, including the possibility of losing your entire invested capital.

2. Past Performance Does Not Guarantee Future Returns

Any reference on this website, in marketing materials, or within the platform to target returns, backtested performance, paper-trading results, illustrative calculators, or historical scenarios does not guarantee, predict, or imply any future result. Target returns (including the illustrative "5-7% monthly" range) are aspirational, not contractual. Actual returns may be materially lower, zero, or negative.

3. Complete Capital Loss Is Possible

Because Sleeping Trade can operate on leveraged instruments such as F&O, and because markets can experience gap moves and circuit halts, there are scenarios in which a significant portion — or in extreme cases, all — of the capital allocated to automated trading can be lost, sometimes rapidly. You must allocate only capital you can afford to lose.

4. Not Suitable for All Investors

Sleeping Trade is not suitable for you if any of the following apply:

• You cannot afford to lose the capital you intend to allocate.
• You would need to borrow money, dip into emergency funds, or sell essential assets to fund the account.
• You do not fully understand the risks of trading in equity derivatives.
• You expect guaranteed returns or believe automated trading removes risk.
• You are psychologically uncomfortable with the possibility of losing a material portion of your capital.

5. Understand the Risks Before Subscribing

You must understand — and are responsible for understanding — the instruments the system may trade on your behalf, the margin framework imposed by your broker and SEBI, the behaviour of stop-loss orders in gap and circuit conditions, the impact of Securities Transaction Tax, GST, brokerage, and exchange fees on realised returns, and the tax treatment of your trading activity. If you do not understand any of these, consult a SEBI-registered investment advisor and a qualified Chartered Accountant before subscribing.

6. AI Systems Can Fail

No AI system, algorithm, or trading infrastructure is infallible. Specific technical risks include, without limitation:

• Software errors and model drift: Despite testing, software bugs and model misbehaviour can occur, resulting in unintended orders, incorrect sizes, or failure to exit in time.
• Connectivity issues: Network problems on your end, our end, or your broker's end can prevent orders from being placed, modified, or cancelled.
• API outages: Broker API outages, rate limits, or authentication failures can disrupt trading activity.
• Execution latency and slippage: Orders may execute at prices materially different from those intended by the model.
• System downtime: Planned or unplanned downtime on our side or the broker's side can interrupt service.
• Algorithm limitations: Historical patterns may not repeat. Strategies that worked in one regime may underperform in another.

7. Market Conditions Can Change Rapidly

Indian markets — and particularly index options around expiry, budget day, RBI policy dates, and global macro events — can move rapidly and substantially. Circuit breakers on NSE and BSE halt trading in specified conditions and can prevent the system from entering or exiting positions at intended prices. FII flows, global risk-off events, USD/INR swings, and oil shocks can cascade into unexpectedly large intraday moves. Gap moves (especially overnight and across weekends) can bypass stop-loss orders entirely.

8. Indian Market-Specific Risks

• Circuit breakers: Exchange-level and script-level circuit halts can prevent execution at desired prices.
• Transaction costs: STT, brokerage, stamp duty, GST, SEBI turnover fees, and exchange charges reduce net returns on every trade.
• Regulatory changes: SEBI can change margin rules, position limits, eligible instruments, and retail participation frameworks — potentially affecting performance or restricting strategies.
• FII activity: Foreign institutional flows can cause rapid, large moves in Nifty, Bank Nifty, and their constituents.
• Liquidity risk: Certain strikes or contracts may have thin liquidity, widening spreads and worsening fills.
• Settlement risk: Although rare, clearing/settlement disruptions can temporarily affect positions or usable margin.

9. Leverage Risk

Trading F&O is leveraged by design. Losses can be a multiple of the margin posted. Use only margin you are prepared to lose in full, and understand that your broker may auto-square-off positions if margin thresholds are breached.

10. Who Should NOT Use This Service

You should not use Sleeping Trade if any of the following describes you:

• You are using emergency funds, borrowed money, or funds earmarked for rent, education, medical expenses, or EMIs.
• You do not have at least a working understanding of F&O margins, option decay, and stop-loss behaviour.
• You believe software eliminates trading risk.
• You cannot tolerate a meaningful negative month emotionally or financially.

11. Recommended Capital Management

• Risk only what you can afford to lose.
• Maintain a separate emergency fund covering at least six months of living expenses in a safe, liquid instrument.
• Start small and scale only after you understand how you — and the system — behave across market regimes.
• Diversify across asset classes. Automated trading should be one sleeve of a broader portfolio, not your entire savings.

12. Tax Implications

Trading through Sleeping Trade has tax consequences. You are solely responsible for accurately reporting and paying tax on trading gains and losses. Consult a qualified Chartered Accountant for personalised guidance — we do not provide tax advice.

13. Not Investment Advice

Sleeping Trade is a software platform. Nothing on this website, in marketing materials, or within the platform constitutes investment advice, financial advice, or any personal recommendation. We are not registered with SEBI as a Registered Investment Advisor (RIA) or Portfolio Manager. Before acting, consult a SEBI-registered advisor.

By subscribing to or using Sleeping Trade, you acknowledge that you have read, understood, and accepted all risks described in this document. You confirm that you are making your own trading decisions and are solely responsible for outcomes in your own broker account.

See also: Disclaimer, Terms of Service, Refund Policy, Privacy Policy.