What is the Max Risk Rule for accounts purchased before 31st August 2026 12:00 PM UK Time?
What is the Max Risk Rule?
If your floating (unrealized) loss reaches 1.5% of your initial account balance at any moment, it will be considered a breach. This rule applies to:
- All Instant accounts (Instant Lite and Instant Pro)
- The funded phase only
Example:
On a $50,000 account, if your floating loss reaches -$750 (1.5% of your initial balance), this triggers a breach.
How the 1.5% is Calculated
The 1.5% threshold can be triggered in two ways:
- A single trade reaching a floating loss of 1.5% on its own, or
- Multiple open trades combined, where their total floating loss adds up to 1.5%.
In both cases, the calculation is based on your initial account balance, not your current equity or balance at the time.
Example:
On a $50,000 account, the 1.5% threshold is $750.
- If one open trade alone is down $750, that is a breach.
- If you have 3 open trades down $300, $250, and $200 respectively (totaling $750), that is also a breach even though no single trade hit the threshold alone.
What Happens When You Breach?
This applies to accounts purchased before 31st August 2026, 12:00 PM UK time. Your account continues to follow these terms for its entire life, regardless of any future rule changes.
- First occurrence → Soft breach. Your profit split is reduced to 40%.
- Second occurrence → Hard breach. Your account is terminated.
What is the Max Risk Rule for accounts purchased on or after 31st August 2026 12:00 PM UK Time?
What is the Max Risk Rule?
If your floating (unrealized) loss reaches 1.5% of your initial account balance at any moment, it will be considered a breach. This rule applies to:
- All Instant accounts (Instant Lite and Instant Pro)
- The funded phase only
Example:
On a $50,000 account, if your floating loss reaches -$750 (1.5% of your initial balance), this triggers a breach.
How the 1.5% is Calculated
The 1.5% threshold can be triggered in two ways:
- A single trade reaching a floating loss of 1.5% on its own, or
- Multiple open trades combined, where their total floating loss adds up to 1.5%.
In both cases, the calculation is based on your initial account balance, not your current equity or balance at the time.
Example:
On a $50,000 account, the 1.5% threshold is $750.
- If one open trade alone is down $750, that is a breach.
- If you have 3 open trades down $300, $250, and $200 respectively (totaling $750), that is also a breach even though no single trade hit the threshold alone.
What Happens When You Breach?
This applies to accounts purchased on or after 31st August 2026, 12:00 PM UK time.
- First occurrence → Immediate hard breach. Your account is terminated. There is no soft breach stage for these accounts.
Key Difference: Accounts purchased before 31st August 2026, 12:00 PM UK time get one soft breach (reduced profit split) before a hard breach terminates the account. Accounts purchased on or after this date go straight to a hard breach on the first occurrence, with no soft breach stage.