Capital Lock is Hex Funded's proprietary risk management system, built to protect funded traders from excessive floating drawdowns.
Based on our data, the majority of funded account breaches occur because traders exceed the Maximum Daily Drawdown while in open positions. Capital Lock exists as an additional layer of protection that steps in before that point is reached, reinforcing disciplined trading and supporting long-term account sustainability.
How It Works
When your combined floating loss across all open positions reaches 2% of your account balance, Capital Lock will trigger and automatically close all open positions across all instruments.
This is classified as a soft breach, meaning:
Your account is not terminated
You may resume trading immediately after positions are closed
No rules are permanently violated
Capital Lock is not a punishment. It is a safety mechanism designed to stop a bad session from becoming an account-ending one.
Consequences of Repeated Triggers
A single trigger is a warning. Repeated triggers indicate a pattern of poor risk management that cannot be sustained on a funded account.
Consequences escalate as follows:
First Trigger Your profit split on the funded account is reduced to 50%
Second Trigger Your funded account is permanently terminated
Capital Lock is designed to give traders the opportunity to correct their approach. It is not designed to be repeatedly absorbed as part of a strategy.
Can You Continue Trading After a Trigger?
Yes. Capital Lock only closes your active positions. It does not suspend, freeze, or restrict your account in any other way. Once your positions are closed, you may continue trading immediately, provided you continue to follow all other rules.
Where Capital Lock Applies
Funded Accounts: Active
Instant Funding Models: Not applicable
Evaluation Phases: Not active