Key Risk Disclosures
Each Business Partner of ASPM Fiscus Pvt. Ltd., here onwards referred to as “RAIN” is obligated under the terms of the Introducer (Technology Reseller) Agreement to make aware each of their clients the following risks:
RAIN is a trading technology development and automation services
provider and is not a regulated entity under the purview of
Securities and Exchange Board of India.
The usage of the products and services offered by RAIN is not to be construed or used as Investment Advice by either the Business Partner or the Business Partner’s Clients.
The automated trading activity undertaken by Clients via the
trading technology solutions provided by RAIN is to be done upon
the own volition of the Business Partner and his Clients.
Further the Business Partner must be aware and make his clients aware of the risks of trading before engaging in any such activity with the help of the technology solutions offered by RAIN.
Trading is speculative and involves significant risks. There can
be no assurance that the objectives of an algorithm will be
The usage of trading algorithms is not suitable for persons who have a need for regular current income from such an activity.
Utilizing an algorithm is not intended to provide a complete investment program for the Client, but should be an allocation of his investment portfolio.
The Client is advised to consult with a Regulated Investment Advisor or professional before engaging in any investment or trading activity.
While RAIN endeavours to keep information displayed on the Services as accurate as possible, there is a risk that this may not be correct, complete or updated.
Malicious individuals, groups or organisations may attempt to
interfere with RAIN’s assets and infrastructure in a variety of
ways, including, but not limited to, malware attacks, denial of
service attacks, coordinated attacks, etc. which could negatively
affect the operation of RAIN’s trading technology development and
With the increased use of technologies and the dependence on computer systems to perform necessary business functions, RAIN’s assets are susceptible to operational and information security risks. In general, cyber incidents can result from deliberate attacks or unintentional events. Cyber security failures or breaches of the third party service providers (including, but not limited to, software providers, cloud services providers, brokerages) could have a negative impact on RAIN’s operations.
It is your responsibility to ensure (i) that your access credentials are kept secure and confidential, including your email, username, and password, as well as access to or use of any two factor authentication hardware, software, or secret and (ii) the security and integrity of any systems (both hardware and software) or services that you use to access the Services.
RAIN may, from time to time, perform maintenance, routine or otherwise. This may lead to downtime and lack of access to RAIN’s services.
The trading strategies employed by the usage of trading algorithms
(including but limited to, among other things, the use of
leverage) involve certain risks as detailed below which should be
taken into consideration before employing such algorithms to carry
a. No assurance can be given that the trading undertaken by a Client with the aid of the technology tools, algorithms will be successful under all ordinary market conditions.
b. Trading can be leveraged. Some algorithms might involve a high degree of leverage. A small price movement in the market may, therefore, result in substantial gains or losses. Thus, trading of some investments may result in losses in excess of the amount initially employed by the Client to be carried out by such algorithms.
c. Trading may be illiquid. Some exchanges have daily price limits for certain investments. Once the price of an investment has increased or decreased by an amount equal to the daily limit, positions in the investment can be neither taken nor liquidated unless traders are willing to affect trades at or within the limit. In the past, investments have moved the daily price limit for several consecutive days with little or no trading occurring. Similar occurrences could prevent the algorithms from promptly liquidating unfavourable positions and thus subject the Client to substantial losses.
d. Speculative nature of trading. The trading algorithms objectives, rules, policies should be considered speculative, as there can be no assurance that algorithms will generate a profit.
e. Market risks. The profitability of a significant portion of the Client depends to a great extent upon the success of price movements of specific financial instruments, securities, commodities, futures and/or other investments. There can be no assurance that the algorithms will be able to predict accurately these price movements or that clients will not lose all or substantial proportion of their investments.
f. The institutions, including but not limited to brokerage firms, with which the algorithms execute trades, may not may not be operationally efficient and may not be subject to capital adequacy requirement. As a result, a counterparty may encounter financial or operational difficulties that impair its quality of services which might expose the Client to potential losses as a result.
g. The strategies and algorithms subscribed for by the client may involve short selling. Short sales can, in certain circumstances, substantially increase the impact of adverse price movements on the Clients trading accounts.
h. The strategy and trading algorithms subscribed for by the Client may involve the taking of frequent trading positions, and, as a result, turnover and brokerage commission expenses of the Client may significantly exceed those of other investment avenues of comparable size.
Although RAIN and its technology solutions have been used by their clients to aid and augment their trading activities, however, the company itself does not have an operating history of more than 3 years. The past performance of the trading algorithms and producers of such algorithms should not be construed as an indication of the future results to be expected by the Client. The company's tools, technology and algorithms should be evaluated on the basis that there can be no assurance that the assessment of the short-term or long-term prospects of trading/ investment strategies will prove accurate or that the algorithm will achieve its desired objective and outcome.
The company's activities depend upon the experience and expertise of the key personnel and management team. The loss of the services of any or all of these individuals could have a material adverse effect on the company's operations.
The trading strategy producers, it’s affiliates and its investment advisors (if any) might manage accounts other than the Client, including accounts in which the trading strategy producers and/or the investment advisory (if any), its principals and employees have significant interests. The trading strategy producers and its affiliates may manage additional accounts in the future. It is possible that such accounts may be in competition with the Client for the same or similar trading methods for the Client and all other systematic accounts the trading strategy producers and its affiliates manage.
Trading in securities, and particularly in derivatives, may be subject to regulatory change. The regulatory process could result in new regulations or restrictions having a material adverse impact on the operations of the company.
The foregoing list of risk factors does not purport to be a complete enumeration or explanation of the risks associated with RAIN’s trading technology development and automation services. Prospective clients should read this entire Risk Statement, carry out their own due diligence as well as consult their own counsel and advisors.