Zerodha founder and CEO Nithin Kamath on Friday detailed a crucial backup plan for the brokerage's clients. This move comes in response to potential disruptions caused by outages at global internet infrastructure giant Cloudflare. Kamath explained how traders can continue to manage their positions even if such a widespread service failure occurs.
Why Cloudflare's Stability Matters to Traders
Kamath highlighted that Cloudflare handles an enormous portion of global internet traffic. Its vast footprint means any disruption can create a ripple effect, impacting millions of websites and apps simultaneously. A brief global slowdown on Friday affected several brokers and fintech platforms, including Zerodha's flagship Kite trading platform.
The issue stems from Kite's architecture. Both its web and mobile platforms depend on Cloudflare for critical services like security screening and protection against distributed denial-of-service (DDoS) attacks. Every user order travels through the internet and is routed via Cloudflare before reaching Zerodha's core systems hosted on Amazon Web Services (AWS).
Once processed, these orders are sent to Zerodha's order management system, which resides in physical data centres with direct links to stock exchanges. Consequently, a Cloudflare disruption can temporarily block access to the Kite platform, even though Zerodha's internal systems and exchange connectivity remain fully functional.
Zerodha's Emergency WhatsApp Backup System
To ensure traders are not left helpless during such external outages, Zerodha has developed a unique backup system. This system operates independently of the company's main technology infrastructure and uses a familiar tool: WhatsApp.
This backup mode is designed exclusively for emergency situations. It becomes relevant when both the Kite web platform and the mobile application become inaccessible during market hours due to an external issue like a Cloudflare outage. The primary function is to allow traders to exit their existing positions.
Kamath stressed that the WhatsApp workflow is intentionally kept separate from Zerodha's primary tech stack. This isolation is key, as it ensures the backup channel remains reachable even if services like Cloudflare, which protect the main platforms, are down.
How to Use the WhatsApp Backup During an Outage
Zerodha has outlined clear steps for clients to follow if they need to use this emergency system:
- Save the official backup number in your contacts: +91 99644 52020.
- During an outage, send a simple message saying "hi" to this number on WhatsApp to initiate the exit workflow.
- The system may take several seconds to respond, as it processes each request independently outside the main infrastructure.
Kamath encouraged all Zerodha users to store this backup number in advance in their phone's contact list. This proactive step allows for swift action if a critical situation arises during trading hours.
A Safety Net for Critical Infrastructure Failures
Zerodha positions this backup as a vital safety net for rare but high-impact disaster scenarios. The modern internet's heavy reliance on centralized infrastructure providers like Cloudflare means a sudden disruption can affect a multitude of services at once.
By offering an alternative communication channel through WhatsApp, which uses a different network pathway, Zerodha aims to provide traders with a crucial tool for risk management. It gives them a way to react and protect their capital even when the primary trading interface is temporarily unreachable due to factors beyond the brokerage's direct control.
This initiative underscores the growing need for financial technology platforms to build resilient systems. It acknowledges the interconnected nature of the internet and provides a practical solution to maintain client trust and operational continuity during unforeseen global technical glitches.
