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Risk Disclosure

This Risk Disclosure Document explains the material risks associated with securities-market investments and with acting upon research recommendations issued by CandleSignals, the research services brand of B-CUBE Consulting Private Limited.The same substantive document is presented to clients through the CandleSignals eKYC and onboarding portal for review and electronic acceptance and forms part of the contractual framework governing the provision of research services.

Estimated reading time: 20–25 minutes

ParticularDetails
DocumentRisk Disclosure Document
Version1.0
Effective Date1st July 2026
Last Reviewed21 July 2026
Applicable ToAll clients availing research services
Regulatory FrameworkSEBI (Research Analysts) Regulations, 2014

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Table of Contents

Use the expandable sections below to navigate this Agreement. Each Part contains related clauses governing the provision of research services by CandleSignals.


1. GENERAL DISCLAIMER

Investments in securities markets are subject to market risks.

The value of investments may increase or decrease depending upon market conditions.

There is no assurance or guarantee that investment objectives will be achieved.

The Client may suffer partial or complete loss of invested capital.

2. GENERAL MARKET RISK

Securities prices are influenced by numerous factors including:

  • Demand and supply dynamics;
  • Economic conditions;
  • Interest rates;
  • Inflation;
  • Government policies;
  • Regulatory developments;
  • Geopolitical events;
  • Global market conditions;
  • Investor sentiment.

These factors may adversely affect investment performance.

3. EQUITY MARKET RISK

Investments in equity shares involve risks including:

  • Price fluctuations;
  • Earnings deterioration;
  • Business risks;
  • Industry risks;
  • Corporate governance risks;
  • Bankruptcy risk;
  • Delisting risk.

Share prices may decline substantially or become worthless.

4. DERIVATIVES RISK

Investments in:

  • Futures;
  • Options;
  • Index derivatives;
  • Commodity derivatives;
  • Currency derivatives;
  • Other leveraged instruments;

may involve substantial risk.

Losses in derivative instruments may exceed initial capital deployed.

Leverage may magnify both gains and losses.

5. LIQUIDITY RISK

Certain securities may suffer from low liquidity.

The Client may not be able to:

  • Buy securities at desired prices;
  • Sell securities at desired prices;
  • Exit positions promptly;

during periods of market stress or low trading activity.

6. VOLATILITY RISK

Market prices may fluctuate significantly within short periods.

Volatility may arise due to:

  • News events;
  • Earnings announcements;
  • Regulatory actions;
  • Global developments;
  • Market sentiment.

High volatility may result in substantial losses.

7. COMPANY-SPECIFIC RISK

Performance of securities may be adversely affected by:

  • Poor management decisions;
  • Financial deterioration;
  • Fraud;
  • Litigation;
  • Governance failures;
  • Operational disruptions;
  • Credit events.

Such events may negatively impact shareholder value.

8. SECTOR-SPECIFIC RISK

Investments concentrated in specific sectors may be affected by:

  • Industry cycles;
  • Regulatory changes;
  • Technological disruption;
  • Demand shifts;
  • Competitive pressures.

Sector performance may differ significantly from broader market performance.

9. CONCENTRATION RISK

Investments concentrated in a limited number of securities, sectors, themes, market capitalizations, or investment styles may be exposed to higher levels of risk than diversified investments.

Losses arising from concentration may be significantly higher during adverse market conditions.

10. SMALL-CAP AND MID-CAP RISK

Investments in small-cap and mid-cap securities may involve:

  • Higher volatility;
  • Lower liquidity;
  • Wider price fluctuations;
  • Greater business uncertainty;
  • Increased sensitivity to market conditions.

Such investments may experience larger gains as well as larger losses compared to large-cap securities.

11. ECONOMIC AND POLITICAL RISK

Investments may be affected by:

  • Economic slowdown;
  • Recession;
  • Inflation;
  • Fiscal policy changes;
  • Monetary policy changes;
  • Political instability;
  • International conflicts.

These factors may adversely affect market performance.

12. GLOBAL AND FOREIGN MARKET RISK

Investments may be directly or indirectly affected by:

  • Foreign exchange fluctuations;
  • International interest rates;
  • Global economic conditions;
  • Geopolitical developments;
  • International trade restrictions;
  • Global financial crises.

Such developments may impact securities listed in India.

13. INTEREST RATE RISK

Changes in interest rates may impact:

  • Equity valuations;
  • Debt instruments;
  • Corporate profitability;
  • Investor sentiment.

Interest rate movements may negatively affect investment performance.

14. REGULATORY RISK

Changes in:

  • Laws;
  • Regulations;
  • Taxation;
  • Exchange rules;
  • Government policies;
  • Regulatory frameworks;

may affect investments and investment returns.

15. TIMING RISK

The success of any investment may depend upon:

  • Timing of receipt of recommendation;
  • Timing of review;
  • Timing of execution;
  • Timing of exit.

Different investors may experience different outcomes even when acting on the same recommendation.

16. GAP RISK

Securities may open significantly higher or lower than previous closing prices due to:

  • Overnight news;
  • Corporate announcements;
  • Economic events;
  • Global market developments.

Such price gaps may result in losses exceeding anticipated levels and may affect stop-loss strategies.

17. EXECUTION RISK

The Research Analyst does not execute trades.

Investment outcomes may be affected by:

  • Execution delays;
  • Slippage;
  • Brokerage charges;
  • Taxes;
  • Margin requirements;
  • Market impact costs;
  • Liquidity conditions.

The Research Analyst shall not be responsible for such outcomes.

18. CORPORATE ACTION RISK

Investment performance may be affected by:

  • Dividends;
  • Bonus issues;
  • Stock splits;
  • Rights issues;
  • Buybacks;
  • Mergers;
  • Demergers;
  • Delistings;
  • Open offers.

Corporate actions may materially affect investment outcomes.

19. MODEL PORTFOLIO RISK

Model Portfolios:

  • Are research products;
  • Are not personalized portfolios;
  • Are subject to market risk.

Actual portfolio performance may differ due to:

  • Timing differences;
  • Execution prices;
  • Taxes;
  • Transaction costs;
  • Rebalancing delays;
  • Liquidity constraints.

Past model portfolio performance does not guarantee future performance.

20. SUITABILITY RISK

Research recommendations are not guaranteed to be suitable for every investor.

The appropriateness of any recommendation depends upon:

  • Financial circumstances;
  • Investment objectives;
  • Risk tolerance;
  • Investment horizon;
  • Liquidity needs;
  • Tax considerations.

The Client remains solely responsible for determining suitability.

21. RECOMMENDATION REVISION RISK

Research recommendations are based on information available at the time of issuance.

The Research Analyst may modify, revise, suspend, withdraw, update, or discontinue recommendations without prior notice if circumstances materially change.

22. DATA ACCURACY RISK

Research analysis may rely upon:

  • Financial data;
  • Corporate disclosures;
  • Exchange data;
  • Economic information;
  • Public databases;
  • Third-party information providers.

Errors, omissions, delays, revisions, or inaccuracies in such data may affect research conclusions.

23. THIRD-PARTY INFORMATION RISK

Research reports may utilize information obtained from public sources.

While such information is believed to be reliable:

  • Accuracy cannot be guaranteed;
  • Completeness cannot be guaranteed;
  • Timeliness cannot be guaranteed.

The Research Analyst shall not be responsible for inaccuracies originating from third-party sources.

24. TAXATION RISK

Investment returns may be affected by:

  • Capital gains tax;
  • Securities Transaction Tax (STT);
  • GST;
  • Stamp duty;
  • Surcharge;
  • Cess;
  • Future tax law changes.

Clients should consult qualified tax professionals before making investment decisions.

25. TECHNOLOGY RISK

Research Services may be delivered through:

  • Email;
  • Websites;
  • Mobile applications;
  • WhatsApp;
  • Telegram;
  • Client portals;
  • Other electronic systems.

Technology systems may experience:

  • Downtime;
  • Delays;
  • Transmission failures;
  • Connectivity issues;
  • Service interruptions.

These may affect delivery of research communications.

26. COMMUNICATION RISK

The Client may not receive communications due to:

  • Spam filters;
  • Network failures;
  • Device issues;
  • Email failures;
  • Mobile connectivity issues;
  • Messaging platform issues.

The Client is responsible for maintaining valid communication channels.

27. CYBERSECURITY RISK

Electronic systems may be exposed to:

  • Cyberattacks;
  • Malware;
  • Phishing;
  • Data breaches;
  • Unauthorized access;
  • Ransomware

No technology system can guarantee absolute security.

28. ARTIFICIAL INTELLIGENCE (AI) RISK

The Research Analyst may use:

  • Artificial Intelligence;
  • Machine Learning;
  • Automated analytical systems;
  • Research automation tools;
  • Large Language Models (LLMs).

AI systems may:

  • Generate inaccurate outputs;
  • Produce incomplete information;
  • Misinterpret inputs;
  • Produce inconsistent responses;
  • Generate misleading conclusions.

Clients should exercise independent judgment and should not rely solely on AI-generated content.

29. NO ASSURANCE OF RETURNS

The Client acknowledges that:

  • Recommendations do not assure returns;
  • Research reports do not guarantee profits;
  • Model portfolios do not guarantee performance;
  • The Research Analyst does not guarantee capital protection.

There is no assurance that any recommendation will achieve its intended outcome.

30. NO RECOURSE FOR INVESTMENT LOSSES

The Client understands and acknowledges that:

  1. Any investment made based on recommendations contained in research reports, market alerts, model portfolios, or other research communications is subject to market risk.
  2. Research recommendations do not assure returns, profits, capital appreciation, or achievement of investment objectives.
  3. Investment decisions are taken solely by the Client and remain the Client’s responsibility.
  4. Subject to applicable law, there shall be no recourse against the Research Analyst solely on account of investment losses arising from investment decisions taken based on research recommendations.

31. PAST PERFORMANCE DISCLAIMER

Past performance is not indicative of future performance.

Historical returns, simulated returns, back-tested results, hypothetical performance, and model portfolio performance may differ significantly from future actual performance.

32. CLIENT ACKNOWLEDGEMENT

I/We hereby acknowledge and confirm that:

  1. I/We have carefully read and understood this Risk Disclosure Document.
  2. I/We understand the risks associated with investing in securities markets.
  3. I/We understand that investments are subject to market risks.
  4. I/We understand that recommendations do not assure returns.
  5. I/We understand that losses may occur, including loss of the entire invested amount.
  6. I/We shall exercise independent judgment while making investment decisions.
  7. I/We understand that the Research Analyst does not guarantee profits, returns, or capital protection.
  8. I/We understand that Research Services may not be suitable for all investors.
  9. I/We understand that the Research Analyst does not provide Portfolio Management Services, custody services, discretionary investment management services, or execution services under this engagement.
  10. I/We voluntarily choose to avail Research Services after understanding the risks described herein.
  11. I/We understand that past performance, historical returns, simulated performance, hypothetical performance, back-tested results, and model portfolio performance are not indicative of future results and may differ materially from future actual performance.

Note: This page is published for transparency and investor reference. Clients subscribe to CandleSignals research services only after completing the electronic onboarding process on the CandleSignals eKYC platform, where acceptance of this Agreement and other applicable regulatory documents is obtained electronically.