Topstep’s Dynamic Risk Expansion system rewards consistent performance in the Live Funded Account by adjusting your Daily Loss Limit and max contract size as your profits grow. This system can give profitable traders more room to trade, manage risk, and stay consistent.
Buying Power | Profit | Daily Loss Limit |
Up to 100 lots | 1M | Up to $100,000 |
Up to 70 lots | 550K | Up to $50,000 |
Up to 50 lots | 200K | Up to $20,000 |
Up to 30 lots | 100K | Up to $10,000 |
— | 50K | Up to $6,000 |
— | 20K | Up to $5,500 |
— | 15K | Up to $5,000 |
Expansion Criteria: 10 active trading days at each tier.
Numbers reflect Daily Loss Limit in a $150K account size. Will vary for smaller account sizes.
How Scaling Works
Every trader starts with a default Daily Loss Limit based on their account size:
50K Account: Starts with a $2,000 Daily Loss Limit
100K Account: Starts with a $3,000 Daily Loss Limit
150K Account: Starts with a $4,500 Daily Loss Limit
As you earn profits in your Live Funded Account, your net profit determines your Tier, and each new Tier increases your Daily Loss Limit. You must spend 10 Active Trading Days* in each Tier before your Daily Loss Limit is increased.
Only profits made in the Live Funded Account count. Your Express Funded Account transfer balance and any payouts do not affect your Tier.
To Increase: Your Daily Loss Limit will increase at the end of the trading day after you’ve spent 10 Active Trading Days in the new Tier.
To Decrease: If your net profit falls below your current Tier at the end of the day, your Daily Loss Limit will scale down that same day.
If you reach a Tier but don’t hold it for 10 Active Trading Days, and your balance drops, the 10-day counter resets the next time you re-enter that Tier.
*Active Trading Days
There is no minimum P/L or trade size required to qualify a day as “active.”
Even placing a single micro contract trade qualifies.
You must move one Tier at a time. Skipping Tiers is not allowed.
Expanded Contract Sizing
Topstep’s standard contract limits are designed to encourage disciplined growth and protect trader capital. As part of the Dynamic Live Risk Expansion, traders who have demonstrated consistent performance and account stability may request expanded contract sizing.
Net Profit | $50K Daily Loss Limit – $2000 | $100K Daily Loss Limit – $3000 | $150K Daily Loss Limit – $4500 |
$15,000.00 | $2,500 | $3,500 | $5,000 |
$20,000.00 | $3,000 | $4,000 | $5,500 |
$50,000.00 | $3,500 | $4,500 | $6,000 |
$100,000.00 | Up to $10K | Up to $10K | Up to $10K |
$200,000.00 | Up to $20K | Up to $20K | Up to $20K |
$550,000.00 | Up to $50K | Up to $50K | Up to $50K |
$1,000,000.00 | Up to $100K | Up to $100K | Up to $100K |
What is Expanded Contract Sizing?
Expanded contract sizing allows traders to request permission to trade more contracts than the standard limits defined by their account size and risk tier.
This is not granted automatically. All expanded sizing requests must be reviewed and approved by Topstep’s Risk Team.
Who is Eligible for Expanded Contract Sizing?
To qualify, a trader must meet both of the following conditions:
Be in Tier 4 or higher within the Dynamic Risk Expansion system
Have a minimum account balance of $100,000 in their Live Funded Account
What is the Path to Reduction?
The Path to Reduction is a tiered system that helps manage risk in a Live Funded Account during a drawdown. When your account experiences significant losses from your starting balance, our Risk Team will monitor your performance and eventually reach out for a Shoulder Tap.
Payouts do not count as drawdown and do not impact your risk tier. Drawdown is based solely on losses from your Live Funded Account starting balance.
Important: Reckless or undisciplined trading in a Live Funded Account may result in the forfeiture of Live capital.
Risk Adjustments Outside the Path to Expansion
In certain situations, the Risk Team may adjust risk parameters in a Live Funded Account based on net equity, even if the account has not yet progressed through the Path to Expansion.
These adjustments are not automatic and are made at Risk’s discretion.
What is a risk adjustment?
The Risk team monitors account performance to determine if an adjustment is needed to a trader’s account. These adjustments can be higher or lower than the defaults for your account size. Your Daily Loss Limit and Max Position Limit may be reduced to protect firm capital, or expanded following a trend of profitability in a Live Funded Account.
Net Equity thresholds
Risk adjustments may be considered once a Live Funded Account reaches the following net equity levels:
$10,000 net equity in a $50,000 Live Funded Account
$15,000 net equity in a $100,000 Live Funded Account
$20,000 net equity in a $150,000 Live Funded Account
When these levels are reached, the Risk Team may review the account and adjust risk parameters to match the appropriate risk for the account balance.
Daily Loss Limit
Live Funded Accounts begin with a Daily Loss Limit based on account size:
$2,000 for $50K accounts
$3,000 for $100K accounts
$4,500 for $150K accounts.
Regardless of account size, if the tradable balance reaches $10,000 or below, the Daily Loss Limit will be set to $2,000.
Example:
If you have a 100k Live Funded Account and your end of day balance goes below $10,000, your Daily Loss Limit will be changed from $3,000 to $2,000 before the start of the next trading session. The DLL will return to $3,000 once your end of day balance rises above $10,000.
This safeguard is designed to limit downside risk during lower-balance periods while allowing traders to continue operating under the same risk framework across all Live account tiers.
What is a Shoulder Tap?
The term comes from the trading pits, where risk managers would literally tap a trader on the shoulder during a drawdown to review what was happening and help them refocus.
At Topstep, a shoulder tap means one of our Risk Managers will reach out when your Live Funded Account experiences a 20% drawdown. They’ll look at your recent trading behavior, talk through what’s happening, and, if needed, adjust your contract size or Daily Loss Limit to help you focus and get back on track. If your account hits a 30% drawdown, you will be moved down to a Shoulder Tap Express Funded Account. Your remaining balance in your Live Funded Account will be transferred to 1 Express Funded Account. The Shoulder Tap Express Funded Account will have no Daily Loss Limit and the Max Loss will be set to the starting value of the account. The goal is to prove your strategy is still valid and you have what it takes to remain consistent through various market regimes. After taking 5 payouts, the Risk team will once again review your trading for the chance to be called up to a Live Account.
0 to -30% Risk Team Review Risk may reach out to discuss your trading activity or reduce your contract size and Daily Loss Limit.
-30% Risk Team Shoulder Tap Risk will reach out to transition you to a Shoulder Tap Express Funded Account with the goal of preserving your hard earned capital. Starting balance will be set at the balance of your Live Funded Account.
-30 to -100% Shoulder Tap Express Funded Account You will remain in the Shoulder Tap Express Funded Account until you reach 5 payouts or the account is drawn down to $0 account balance.