Trading & Market Risk Disclosure

1.Purpose & Scope#

This Trading & Market Risk Disclosure (this "Disclosure") explains the real risks of trading and investing in financial markets, and how ShareRocketPro relates to them. It forms part of, and must be read together with, our Risk Disclaimer and Terms of Use.

1. 1.1
   ShareRocketPro is an educational paper-trading simulator. It executes no real trades, holds no client securities, and moves no real money. Every risk described here is a risk of REAL markets, described so you understand what practising here does — and does not — prepare you for.
2. 1.2
   Nothing in this Disclosure is investment, financial, legal or tax advice, and nothing here is a recommendation to buy, sell or hold any security. It is general educational information only.
3. 1.3
   "You" means any person who accesses or uses ShareRocketPro — the website, mobile apps and any related service (together, the "Service").
4. 1.4
   Read this Disclosure before you act on anything you learn here in a real market. If any part is unclear, seek advice from a licensed professional before you trade real money.

2.General Market Risk#

1. 2.1
   Trading and investing in securities carry real risk. In a real market you can lose some, most, or all of the capital you commit — and, with certain strategies, more than you originally put in.
2. 2.2
   The value of a security can fall as well as rise. Past performance is never a reliable guide to future results, and no historical pattern is guaranteed to repeat.
3. 2.3
   There is no such thing as a risk-free return in real markets. Higher potential reward almost always comes with higher potential loss.
4. 2.4
   On ShareRocketPro you risk only virtual balances that have no real-world value. The absence of real loss is exactly what makes it safe to learn — and exactly what makes it an imperfect rehearsal for the real thing.

3.The Simulation-vs-Reality Gap#

A simulator is a model of a market, not the market. The following real-world frictions are absent, simplified or approximated on ShareRocketPro, so simulated results can differ materially from what you would experience trading real money:

1. 3.1
   Frictions a simulation cannot fully reproduce include:

   1. slippage — the gap between the price you expect and the price you actually get;
   2. partial fills and queue position — real orders may fill only in part, or not at all, at your price;
   3. liquidity constraints — a real market may lack buyers or sellers when you need them;
   4. brokerage commissions, exchange and regulatory charges, and settlement costs;
   5. taxes on gains, dividends and transactions;
   6. real emotions — the fear, greed and stress of having actual money at stake.
2. 3.2
   ShareRocketPro's market data displays show real NEPSE data from Share Rocket Pro's data platform, which may be delayed and is not an official exchange feed. Paper trades do not fill at those prices: they fill with virtual practice money at practice-market prices generated by ShareRocketPro, which start from and loosely track real NEPSE prices and continue to move when NEPSE is closed. Practice prices are not official NEPSE prices, and paper trades do not reproduce real order-book dynamics, queue position or slippage.
3. 3.3
   Because of these gaps, a strategy that looks profitable on ShareRocketPro may lose money in a real market. Simulated performance is not, and must never be presented as, a real trading record.

4.Price & Volatility Risk#

1. 4.1
   Real market prices can move sharply and without warning, in either direction, driven by news, sentiment, order flow or events outside any single participant's control.
2. 4.2
   Volatility can widen the gap between your intended and actual execution price, and can trigger rapid losses over short periods.
3. 4.3
   NEPSE applies circuit limits — daily price bands (for example, a cap on how far an individual security's price may move in a single session) and market-wide circuit breakers that can pause trading. These mechanisms can stop you acting when you most want to.
4. 4.4
   ShareRocketPro's practice market keeps practice prices within limits modelled on NEPSE's daily circuit and approximates volatility for educational realism, but the timing, depth and behaviour of real prices, halts and bands will differ from the model.

5.Liquidity Risk#

1. 5.1
   In a real market you may not be able to buy or sell at your chosen price, or at all, if there are too few willing counterparties at that moment.
2. 5.2
   Thinly traded securities can be especially hard to exit; you may have to accept a worse price to complete a trade, or hold a position longer than you intended.
3. 5.3
   Wide bid-ask spreads increase your real cost of trading and can turn an apparent gain into a loss the instant you transact.
4. 5.4
   A simulator generally assumes you can transact at the shown price. That convenience hides genuine liquidity risk you must respect in a real market.

6.Intraday Trading Risk#

1. 6.1
   Intraday (same-day) trading is high-risk, fast-moving and demanding. Prices can swing repeatedly within a single session, and small mistakes compound quickly.
2. 6.2
   It is easy to over-trade — to take too many positions, too large, too often — and real costs, taxes and slippage erode returns far faster than beginners expect. Many real intraday traders lose money.
3. 6.3
   Where intraday trading appears on ShareRocketPro, it is a SIMULATED educational feature only. It exists to teach the mechanics and discipline of short-term trading using virtual money — it is not a real intraday facility and executes no real trades.
4. 6.4
   Practising intraday trading here does not make it suitable for you in a real market. Treat any real-money intraday activity as high-risk and size it accordingly.

7.Short-Selling Risk#

1. 7.1
   When you short-sell in a real market, your loss is theoretically unlimited: a security you sold short can keep rising without a fixed ceiling, so the amount you can lose has no natural cap, while your maximum gain is limited to the price falling to zero.
2. 7.2
   Real short-selling also carries borrowing cost and recall risk — the lender of the security can demand it back at an inconvenient time — and margin-call risk, forcing you to close a position at a loss or add capital on short notice.
3. 7.3
   ShareRocketPro does NOT facilitate real short-selling. Where short-selling appears here, it exists only as a SIMULATED educational feature that teaches the concept using virtual money; no securities are borrowed, sold or delivered.
4. 7.4
   Understanding short-selling in the simulator is not the same as being ready, funded or authorised to short-sell in a real market. Real short-selling may require a margin account, eligibility and facilities ShareRocketPro neither provides nor arranges.

8.Leverage & Margin Risk#

1. 8.1
   Leverage and margin let a trader control a larger position than their own capital. In a real market this amplifies gains AND losses — a small adverse move can wipe out your margin and leave you owing more than you deposited.
2. 8.2
   A margin call can force you to add funds or liquidate positions at the worst possible moment. Leverage turns ordinary volatility into a solvency risk.
3. 8.3
   ShareRocketPro does not facilitate real margin or leverage. Where these concepts appear, they are SIMULATED for education only, using virtual balances — no credit is extended and no real position is financed.
4. 8.4
   Never assume that comfort with leverage in a simulation translates into safe use of leverage with real money. It is one of the fastest ways real traders lose their capital.

9.Systemic & Event Risk#

1. 9.1
   Markets are exposed to rare, high-impact "black-swan" events — crashes, crises and shocks that are hard to predict and can move prices far and fast.
2. 9.2
   Trading can be halted or suspended at the level of a single security or the whole market, leaving you unable to enter or exit a position when you want to.
3. 9.3
   Policy, regulatory, macroeconomic, political and natural-disaster events can change market conditions abruptly and reprice entire sectors overnight.
4. 9.4
   A simulation cannot faithfully reproduce the speed, gaps and disorder of a real systemic event, nor the real-world consequences of being caught in one.

10.Behavioural & Psychological Risk#

1. 10.1
   The largest difference between practising and real trading is you. When real money is at stake, fear, greed, hope, regret and overconfidence drive decisions that a calm plan never would.
2. 10.2
   Common, costly patterns include chasing losses, cutting winners too early, holding losers too long, over-trading after a win, and abandoning a strategy the moment it is tested.
3. 10.3
   Because ShareRocketPro risks only virtual money, it cannot fully replicate the emotional pressure of real trading. You may behave far more calmly here than you would with your savings on the line.
4. 10.4
   Building good habits in the simulator helps, but assume your real-world discipline will be tested harder. Manage that risk deliberately — with rules, limits and, where appropriate, professional guidance.

11.Currency, Company-Specific & Concentration Risk#

1. 11.1
   Currency risk: where value is exposed to more than one currency, exchange-rate movements can add gains or losses independent of the underlying security.
2. 11.2
   Company-specific risk: an individual company can be hit by earnings misses, management changes, fraud, litigation, regulatory action or loss of business — events that can sharply reduce or destroy the value of its shares regardless of the wider market.
3. 11.3
   Concentration risk: putting too much of your capital into a single security, sector or theme magnifies the damage if that one bet goes wrong. Diversification reduces, but never eliminates, risk.
4. 11.4
   The simulator lets you concentrate freely without real consequence. In a real market, position sizing and diversification are among the most important risk controls you have.

12.No Guaranteed Returns#

1. 12.1
   No one can guarantee a profit from trading or investing. Real returns are uncertain, and any strategy can lose money.
2. 12.2
   Anyone who promises guaranteed profits, "risk-free" returns, assured tips or a system that cannot lose is a red flag — treat such claims as a warning sign of fraud, not an opportunity.
3. 12.3
   ShareRocketPro makes no promise about the returns you would achieve in a real market, and success in the simulator guarantees nothing about real-world outcomes. See our Risk Disclaimer.

13.Suitability#

1. 13.1
   Trading is not suitable for everyone. Whether it is right for you depends on your financial situation, goals, experience and tolerance for loss.
2. 13.2
   In a real market, trade only with money you can genuinely afford to lose — never funds you need for living costs, debts, emergencies or dependants.
3. 13.3
   Before committing real money, consult a licensed financial adviser and, where relevant, a tax professional. ShareRocketPro is not a licensed adviser and provides no personalised advice. See our Regulatory & Compliance notice.
4. 13.4
   ShareRocketPro is not registered with, licensed by, or endorsed by SEBON or NEPSE. "NEPSE" and stock symbols are used nominatively for education only, and imply no affiliation, sponsorship or approval.

14.Acknowledgement#

1. 14.1
   By using ShareRocketPro, you acknowledge that the risks described here are real risks in real markets, that the Service only simulates them with virtual money, and that simulated results do not reflect the costs, frictions or emotions of real trading.
2. 14.2
   You accept that you are solely responsible for any decision you make with real money, and that ShareRocketPro and Lacspace are not liable for losses you incur in real markets. This Disclosure is read together with our Risk Disclaimer and Regulatory & Compliance notice.

15.Contact#

1. 15.1
   Questions about this Disclosure: legal@sharerockets.com. For general help with the Service: support@sharerockets.com.