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What Is the Maximum Total Loss?

Written by Hex Funded

The Maximum Total Loss is the absolute floor your account equity must never breach. Unlike the Max Daily Loss, which resets every day, the Maximum Total Loss applies at all times and never resets.

What It Covers

The Maximum Total Loss measures the lowest point your equity is permitted to reach, including both closed and open trades. If your equity hits or drops below this level at any point, the account is immediately considered breached and will be closed.

Two Types of Drawdown

Hex Funded uses different drawdown structures depending on the model you select. It is essential that you understand which type applies to your account before you begin trading.

Static Drawdown

The loss limit is fixed from the moment your account is created and does not move under any circumstances. It remains the same regardless of how much profit you make.

Trailing Drawdown

The loss limit moves upward as your equity reaches new highs. As your equity increases, the floor rises with it - locking in a higher minimum as your account grows. The limit never moves downward.

Two Types of Drawdown

Hex Funded uses different drawdown structures depending on the model you select. It is essential that you understand which type applies to your account before you begin trading.

Static Drawdown

The loss limit is fixed from the moment your account is created and does not move under any circumstances. It remains the same regardless of how much profit you make.

Trailing Drawdown

The loss limit moves upward as your equity reaches new highs. As your equity increases, the floor rises with it - locking in a higher minimum as your account grows. The limit never moves downward.

Your Responsibility

It is entirely your responsibility to understand the drawdown structure of the model you have chosen. Specifically, you must know:

  • Whether your account uses trailing or static drawdown

  • How the loss limit moves or stays fixed over time

  • How this affects the risk you can take at any given point

This is not optional knowledge. Misunderstanding your drawdown structure is one of the most common causes of avoidable breaches. Read the model article for your specific account in the Models section of this Help Centre before you place your first trade.

In Summary

  • Maximum Total Loss is the lowest point your equity is ever allowed to reach

  • It applies at all times, not just within a single day

  • A breach occurs the moment your equity touches or crosses the limit

  • The drawdown type depends on the model you have chosen

  • How this affects risk during trading

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