Risk Disclosure

Last updated: June 2026

1. Market Risk

Equity prices can decline rapidly and without warning due to market conditions, macroeconomic events, regulatory changes, corporate actions, or other factors outside the control of any model or algorithm. No trading system can eliminate market risk.

2. Model and Algorithm Risk

QuantNest's trading signals are generated by machine-learning models trained on historical data. Such models:

• May not generalise to future market regimes not present in training data
• Can produce incorrect or delayed signals during periods of high volatility or low liquidity
• Are subject to model drift as market dynamics evolve
• Cannot predict exogenous events (geopolitical shocks, pandemics, natural disasters)

3. Past Performance

Any reference to historical returns, backtest results, or performance metrics is provided for illustrative purposes only and is not indicative of future results. Backtested performance does not reflect actual trading and may be subject to survivorship bias, look-ahead bias, or overfitting, even when controls are applied.

4. Liquidity Risk

Even for exchange-listed NSE equities, market depth can be insufficient to execute signals at modelled prices, particularly for larger position sizes or during market stress. Slippage may materially reduce realised returns relative to modelled returns.

5. Execution and Technology Risk

Automated trading systems are subject to technical failures including network outages, API errors, exchange downtime, software bugs, and infrastructure failures. Such failures can result in missed trades, duplicate orders, or erroneous executions. QuantNest operates controls to detect and mitigate these risks but cannot guarantee failure-free operation.

6. Regulatory Risk

SEBI and other regulatory bodies may introduce rules or interpretations that affect the legality or viability of systematic trading strategies. Regulatory changes may require modifications to or cessation of strategy operation.

7. Concentration Risk

Systematic strategies may concentrate exposure in a small number of securities, sectors, or market conditions. Concentration increases the impact of adverse moves in those specific areas.

8. No Guarantee

QuantNest does not guarantee any level of return, capital preservation, or strategy availability. Access to the platform may be suspended, modified, or terminated at any time.

9. Suitability

Systematic algorithmic trading may not be suitable for all investors. You should assess your own financial situation, risk tolerance, and investment objectives before engaging with any output from this platform. You should consult with a qualified financial adviser as appropriate.

10. Regulatory Status

QuantNest is not registered as a SEBI Investment Adviser, Portfolio Manager, or Alternative Investment Fund. Information provided by this platform does not constitute regulated investment advice under the SEBI (Investment Advisers) Regulations, 2013 or any other applicable regulation.