1. Minimum Payout Threshold
You must generate at least 3% profit on your initial account size before you can request a payout.
Example: For a $100,000 account, the minimum profit required is $3,000.
2. Trailing Overall Drawdown Mechanism
When you reach the 3% profit threshold, the overall trailing drawdown is locked at the initial account size (the “base”).
Before 3% Profit: The trailing drawdown follows your highest recorded balance.
After 3% Profit: The trailing drawdown no longer increases and is fixed at your starting balance. This means your maximum loss allowed is now calculated from the initial balance, not your highest balance.
3. Payout and Buffer Requirements
50% Buffer Rule: You are required to keep at least 50% of your profits in the account as a risk buffer.
Payout Split: You can withdraw the remaining 50% of your profits at a 100% payout rate (i.e., you keep 100% of what you withdraw).
Practical Examples
Example 1: First Payout
Account Size: $100,000
Profit Generated: $4,000 (4% of account size)
Trailing Drawdown Lock: Upon hitting 3% profit, the trailing drawdown is locked at $100,000.
Total Profits Available: $4,000
Buffer Requirement (50%): $2,000 must remain in the account.
Maximum Withdrawable Amount (other 50%): $2,000 (Withdrawn)
Post-Withdrawal Balance: $102,000
Drawdown Limit: $100,000
Drawdown Room: $2,000
Example 2: Second Payout After More Profits
Let’s say you earn additional profits after your first withdrawal.
Account Size: $100,000
Previous Balance (after 1st withdrawal): $102,000
New Profit Generated: $3,000
Current Balance: $102,000 + $3,000 = $105,000
Total Profits Since Available: $5,000
Buffer Requirement (50%): $2,500
Maximum Withdrawable Amount (other 50%): $2,500 (Withdrawn)
Post-Withdrawal Balance: $102,500
Drawdown Limit: $100,000
Drawdown Room: $2,500