This rule applies only to floating losses from active positions.
If your floating loss reaches 1.5% of your initial account balance at any point in time, it will be considered a violation.
Breach Handling
First occurrence:
This is treated as a soft breach, and your profit split will be reduced to 40%.
Second occurrence:
This is treated as a hard breach, and your account will be terminated.
Scope of Application
This rule applies only to funded-phase accounts.
It applies to:
A single trade reaching a floating loss of 1.5%, or
Multiple trades combined reaching a total floating loss of 1.5%.
Example
Account initial balance: $50,000
Maximum allowed floating loss (1.5%): $750
If one trade reaches a floating loss of –$750, or if multiple open trades together reach a combined floating loss of –$750, the Max Risk Rule is breached, even if the trades later recover.
First time: profit split reduced to 40%
Second time: account terminated