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Floating Max Risk Rule: How It Works

Dedicated article explaining the two-tier 1% floating loss rule and its consequences.

📉 Overview

Every Funded Retry account includes a 1% floating loss rule. It works in two stages, and getting both stages right matters, since the consequence changes the second time it happens.


⚙️ How It Works

  1. First time floating loss exceeds 1%: your profit split is reduced from 50% to 40%. Your account stays open and active.

  2. Second time floating loss exceeds 1% (after the split has already been reduced): the account is breached.


📍 Where This Applies

This rule applies only to Funded Retry accounts, specifically:

  • Instant Lite / Instant Pro — Funded Retry

  • 1-Step / 1-Step Pro — Funded Retry

  • 2-Step Fast / 2-Step Squad — Funded Retry

It does not apply to Phase 1 Retry or Phase 2 Retry accounts (the evaluation stages). Those stages don't carry a profit split, and this rule doesn't affect them.

Stage

Floating Loss Rule Applies?

Phase 1 Retry

❌ No

Phase 2 Retry

❌ No

Funded Retry (all models)

✅ Yes


🧮 Example

A trader on a Funded Retry account exceeds 1% floating loss for the first time. Their profit split drops from 50% to 40%, but the account remains active and they continue trading. Later, they exceed 1% floating loss again. This second violation breaches the account. Since their account's one Retry credit was already used, they'd need to purchase a new account to continue. See What Happens If You Fail Your Retry Account?


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