Risk Disclosure

1. What MunafaKit Is

MunafaKit is a technology automation tool that allows users to build, backtest, and automate rule-based trading strategies on Indian equity markets (NSE). It is not a SEBI-registered Investment Adviser, Research Analyst, Portfolio Manager, or Stockbroker.

MunafaKit does not:

• Provide personalised investment advice
• Recommend specific stocks or securities to buy or sell
• Manage your portfolio or funds on your behalf
• Act as a financial intermediary between you and any exchange

All trade decisions are executed pursuant to strategies configured entirely by the user. The platform merely automates the execution of rules that you define.

2. No Guaranteed Returns

MunafaKit makes no representation, warranty, or guarantee of any kind regarding the profitability of any strategy created or run on the platform. Past performance of any strategy — whether in backtesting, paper trading, or live trading — does not guarantee or indicate future results.

Backtesting results are simulated and based on historical data. They are subject to limitations including:

• Survivorship bias in historical data
• Inability to account for market impact of your own orders
• Differences between simulated and actual slippage
• Overfitting to historical data (curve fitting)
• Look-ahead bias if rules are not carefully designed

AI-generated confirmations from Claude, GPT-4o, Gemini, Groq, or Ollama are algorithmic outputs and may contain errors, hallucinations, or be based on incomplete or incorrect market context. They are not financial research or advice.

3. User Responsibility

You are solely responsible for:

• All trading strategies you create, configure, and deploy on MunafaKit
• Understanding the rules and logic you have set up before enabling live trading
• Ensuring your strategies comply with applicable SEBI regulations and exchange rules
• All financial outcomes, gains, and losses resulting from live trading
• Maintaining adequate funds and margins in your broker account
• Monitoring your live strategies and intervening when necessary

MunafaKit is a tool. Like any tool, its effectiveness depends entirely on how it is used. You must have sufficient knowledge of trading, financial markets, and risk management before using the live trading feature.

4. Market Risk Disclosure

Trading in equity markets involves substantial risk of loss and may not be suitable for all investors. You should carefully consider your investment objectives, level of experience, and risk appetite before trading.

Specific risks include but are not limited to:

• Market risk: Prices can move rapidly against your position. You may lose all capital deployed.
• Liquidity risk: Certain stocks may have insufficient liquidity, causing slippage or inability to exit positions.
• Technology risk: System failures, network outages, exchange API errors, or bugs in the platform could result in missed trades, duplicate orders, or incorrect execution.
• Broker risk: MunafaKit executes trades via Zerodha's Kite Connect API. Any failure or delay on Zerodha's end is outside MunafaKit's control.
• Regulatory risk: SEBI or exchange regulations may change, affecting automated trading strategies.
• AI model risk: AI confirmations are probabilistic outputs, not guaranteed signals. Models can and do make incorrect assessments.
• Intraday MIS risk: MIS positions are auto-squared off at 3:15 PM IST. If markets are illiquid, the exit price may be significantly worse than expected.

Only trade with capital you can afford to lose entirely. Never trade with borrowed money or funds earmarked for essential expenses.

5. No Liability

To the maximum extent permitted by applicable law, MunafaKit and its founders, employees, and affiliates shall not be liable for any financial loss, consequential loss, or damage of any kind arising from:

• The use or inability to use the platform
• Errors in trade execution or order placement
• Incorrect AI-generated confirmations
• System downtime or technical failures
• Any trading losses, however caused

6. Seek Professional Advice

If you are unsure about any aspect of trading or investing, please consult a SEBI-registered Investment Adviser or Research Analyst before using MunafaKit for live trading. A list of registered advisers is available on the SEBI website (sebi.gov.in).

7. Contact Us

If you have questions about this risk disclosure, please reach out via our contact form.