Zerodha, a prominent Indian brokerage platform, has introduced Kite Backup, a WhatsApp-based emergency trading mode designed to provide users with a safety net during technical outages on its primary Kite platform. This initiative aims to enhance system resilience and safeguard clients from potential disruptions in the market.

Why Kite Backup?

Trading platforms rely on complex, interconnected systems, making them vulnerable to technical failures. These systems involve everything from exchange connections through leased lines to cloud servers and physical data centers. Recognizing the potential for disruptions, Zerodha has developed Kite Backup as an independent infrastructure to manage existing orders via WhatsApp.

Zerodha CEO Nithin Kamath highlighted the complexity of trading platforms and the potential for issues arising from various points in the system. Kite Backup is designed to allow users to cancel orders and exit positions even if the main Kite platform (web and mobile) becomes inaccessible during market hours.

How Kite Backup Works

Kite Backup functions as a simplified interface, enabling users to manage their positions during emergencies. In the event of a technical failure, users can access the service by sending a "Hi" message to a designated WhatsApp number. The system will then guide them through a process to close positions and cancel pending orders, all without needing the Kite platform.

Once logged in, users will see options to: * View and square off open positions. * Cancel pending orders. * Check holdings for reference. * View available funds.

How to Set Up Kite Backup:

Setting up Kite Backup is a straightforward process:

1. Save the Number: Add +91 99644 52020 to your contacts.
2. Start a Chat: Open WhatsApp and send a "Hi" to the saved number.
3. Verify Details: Enter your Zerodha User ID and PAN when prompted.
4. Authenticate: Enter the OTP received via SMS to complete the setup.

Important Considerations

• Kite Backup is not a replacement for the main Kite platform and does not offer the full range of features. It is designed specifically for emergency situations to manage existing positions.
• New order placement is not available through Kite Backup.
• The service runs continuously, regardless of Kite's functionality, but it relies on the same backend servers as Kite. If those servers are down, Kite Backup will not function.
• The backup system runs on Microsoft Azure and uses WhatsApp's “Flow” user interface. It connects directly to Zerodha's OMS silos without relying on Kite's software or its primary hosting providers.

While Zerodha has implemented numerous safeguards and redundancies over the years, Kite Backup provides an additional layer of protection for traders. For users without WhatsApp, existing redundancies within Kite remain, along with the option to trade via phone.