# Compliance ## Compliance and Regulatory Position This document describes what OpenAlgo is, how it operates, and where it stands in relation to the Securities and Exchange Board of India (SEBI) regulatory framework for algorithmic trading. It is intended as a plain-language reference for users, broker compliance teams, and anyone evaluating OpenAlgo in a regulated context. It is not legal advice. ### What OpenAlgo Is OpenAlgo is open-source software published under its stated license on GitHub and PyPI. It is a broker-agnostic order execution library that helps traders connect their own code to their own broker accounts. OpenAlgo is not a service, a subscription platform, a hosted execution engine, an algo marketplace, a broker, or an advisory. ### How OpenAlgo Operates 1. **The trader downloads the source code** from GitHub or installs the Python package from PyPI. 2. **The trader deploys OpenAlgo on their own infrastructure**, such as a home PC, a VPS, a Mac Mini, or a Docker container they control. 3. **The trader configures their own broker API credentials** in a local environment file on that infrastructure. 4. **OpenAlgo makes API calls directly from the trader's machine to the trader's broker.** There is no intermediate server, proxy, relay, or observation point operated by creator/maintainer or any affiliated entity. Order flow, credentials, positions, and trade data never leave the trader's infrastructure. OpenAlgo or the creator/maintainer has no technical visibility into any of these. ### The Four Regulatory Facts Under the SEBI framework for algorithmic trading (circular SEBI/HO/MIRSD/MIRSD-PoD/P/2025/0000013 dated February 4, 2025, effective April 1, 2026), four facts define OpenAlgo's position: **1. OpenAlgo is open-source software distributed on GitHub and PyPI.** It is published source code, not a service offering. The equivalent category is AmiBroker, MetaTrader, or any Python library on PyPI. **2. OpenAlgo does not host, route, proxy, or observe any order flow.** Traders run OpenAlgo on their own infrastructure. The public IP that reaches the broker API gateway is the trader's own. The static IP registered with the broker under the SEBI framework is the trader's own. **3. OpenAlgo does not distribute trading strategies.** OpenAlgo ships execution plumbing only. Traders write their own strategy logic or bring it from elsewhere. No strategies with performance claims are published or distributed through OpenAlgo. The SEBI Research Analyst licensing requirement for black-box strategy distribution does not apply because no such distribution takes place. **4. OpenAlgo has no commercial association with any broker, research analyst, investment adviser, or financial services entity.** There are no referral arrangements, no brokerage revenue shares, no co-marketing deals, no bundled advisory partnerships, and no "sign up with broker X to get OpenAlgo" promotions. Broker integrations in the source code exist solely because traders use those brokers, not because of any relationship between creator/maintainer and the broker. ### Trader Responsibilities Because the trader is the operator of their own OpenAlgo instance, the trader is the party responsible for all regulatory obligations that attach to the use of broker APIs. This includes: * Procuring and registering a static IP with their broker, as required by the SEBI framework effective April 1, 2026 * Keeping order flow within the 10 orders-per-second threshold, or registering their strategy with their broker and the exchange if they exceed it * Ensuring their use of the broker API complies with the broker's own API terms of service * Obtaining any required licenses if they distribute strategies or provide investment advice to others OpenAlgo does not mediate, monitor, or manage any of these responsibilities on the trader's behalf. ### Note to Broker Compliance Teams If you are a broker compliance or risk team evaluating OpenAlgo in connection with a client running it against your API, the relevant technical facts are: * OpenAlgo runs on the client's own infrastructure * Your API credentials remain on the client's machine * API calls originate from the client's own IP address * There is no OpenAlgo server, gateway, or relay in the path between the client and your API The source code is publicly available on GitHub for architectural verification. For any specific compliance questions, contact creator of openalgo through the channels listed in the repository. ### Summary OpenAlgo is software. Traders run it on their own infrastructure using their own broker credentials and their own strategies. creator/maintainer has no visibility into any trader's activity and no commercial relationship with any broker or advisory entity. Responsibility for SEBI, exchange, and broker API compliance rests with the individual trader operating the software. *** *This document describes the operational and regulatory position of OpenAlgo as of its publication date. It is provided for informational purposes and does not constitute legal advice. Traders should consult their own compliance advisors for questions specific to their situation.* --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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