A 5% profit cap means that within a payout cycle, only profits up to 5% of the account balance are eligible. Any profits beyond this threshold are adjusted (reduced) back to the capped level.
This rule helps maintain disciplined trading and protects both the trader and the firm from excessive risk-taking.
Example: $100,000 Account
Let’s take a funded account of $100,000:
5% of $100,000 = $5,000
After the 4th successful payout, the 5% profit cap is removed
From that point onward, traders can keep 100% of their profits, with no cap applied
Why This System Exists
This structure is designed to:
Encourage steady, controlled growth
Discourage high-risk, short-term strategies
Reward traders who demonstrate consistency over multiple payout cycles