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Regulatory Compliance & Risk Warnings

Risk Disclaimer

Mandatory Risk Disclosure for Derivatives Traders • September 2026 Edition

SEBI Mandated F&O Risk Disclosure

Securities and Exchange Board of India Study on Individual Traders

According to an exhaustive empirical study conducted by the Securities and Exchange Board of India (SEBI) on individual traders in the Equity Futures & Options (F&O) segment:

  • 9 out of 10 individual traders in Equity Futures & Options incurred net financial losses.
  • On average, loss-makers incurred an average loss of over ₹50,000 per trader per fiscal year.
  • Over and above the net trading losses, active loss-makers spent an additional 28% of their losses in transaction costs, exchange fees, and brokerage turnover.
  • Those making net trading profits spent between 15% to 50% of such profits in statutory transaction charges.

1. Simulated Capital & Educational Evaluation Purpose

All accounts, challenges, and evaluations provided by FundedDesk Technologies Private Limited operate strictly in demo and simulated software environments. The capital amounts allocated (e.g., ₹2,00,000 up to ₹1,00,00,000) are purely virtual balances used to assess a participant's risk management discipline, consistency, and trading performance.

At no point does FundedDesk accept capital from clients to deposit, hold, or execute live transactions on the National Stock Exchange of India (NSE) or the Bombay Stock Exchange (BSE). When a trader qualifies for a Funded Account, trading continues in a simulated environment and performance payouts are funded from proprietary firm liquidity reserves.

2. Non-Brokerage & Non-Advisory Declaration

FundedDesk is not a broker-dealer, deposit-taking institution, portfolio manager, or investment advisor registered with SEBI or the Reserve Bank of India (RBI).

Nothing displayed on our platform, trading terminal, analytics widgets, blog articles, social media channels, or support communications constitutes investment advice, financial planning, or a recommendation to purchase or sell any specific securities, index futures, or call/put options.

3. Derivatives & Option Greeks Volatility Risk

Options trading on Indian indices (NIFTY 50, BANKNIFTY, FINNIFTY, SENSEX) involves substantial risk of rapid simulated drawdown due to:

  • Theta (Time Decay): Options contracts lose extrinsic premium every single hour as expiration approaches, particularly during weekly Thursday and Wednesday expiries.
  • Vega (Volatility Swings): Unexpected shifts in the India VIX can cause drastic compression or expansion in option premium pricing independently of the underlying index price.
  • Overnight Gap Openings: Global events or geopolitical announcements occurring outside market hours can cause major gap-up or gap-down openings that breach daily loss limits instantly upon market open.

4. Limitations of Hypothetical Performance

Hypothetical or simulated performance results have inherent limitations. Unlike actual market performance, simulated trading results do not encounter liquidity dry-ups, partial order fills in deep out-of-the-money options, or exchange connectivity halts. Furthermore, simulated trading does not involve financial risk, and no simulated trading record can completely account for the psychological pressure of trading personal capital.

5. Electronic Trading & Telemetry Notice

Electronic trading systems rely on multiple interconnected third-party networks, internet service providers (ISPs), cloud infrastructure, and market data vendor pipelines. While FundedDesk maintains dual WebSocket streaming endpoints and automatic HTTP polling failovers, disruptions, network lag, packet drops, or browser memory constraints may occur. Traders are responsible for maintaining stable internet connections and backup devices.

6. Nature of Evaluation Fees

The fees paid to purchase an evaluation package are not an investment, security deposit, or savings balance. Fees are solely considerations paid to access proprietary evaluation technology, data feed servers, simulated matching infrastructure, and educational analytics. If an account is disqualified due to a rule breach, fees are non-refundable (subject to our 100% Refund on First Payout guarantee for disciplined passing traders).