Max Risk
How Max Risk measures your combined realised and unrealised loss at any given time within a Risk Window.
Max Risk measures the total amount your account has lost — realised and unrealised — at any given time within a Risk Window. It operates in real time from your Dashboard.
The Max Risk Limit is expressed as a percentage of your account's starting balance. The percentage and the consequences of reaching the limit vary depending on your account type:
Challenge-promoted and Instant Simulated Funded Accounts: Reaching the limit triggers the Pip Protector strike system.
Pay with Profits: During the Challenge, the Max Risk mechanic is used to calculate your Risk Tier, which determines your PWP Fee and Profit Share. There is also a hard limit of 3% — reaching it breaches the Challenge immediately. On the Simulated Funded Account, the Max Risk Limit is set by your Risk Tier and is a hard breach with no strikes.
⚠️ The Max Risk percentage and enforcement rules differ between account types. Always check the rules for the specific account you are trading.
How It Works
Max Risk is built around three core concepts:
Max Risk Reference Balance
When you open your first position, the Dashboard records your account balance at that moment. This becomes your Max Risk Reference Balance — the baseline against which losses are measured throughout the Risk Window.
The Reference Balance acts as a high watermark. If a profitable trade takes your balance to a new high within the same Risk Window, the Reference Balance rises to match it — so profits do not create additional room to lose.
Risk Window
A Risk Window begins the moment you open your first position. It does not end when you close positions — the Window only resets after you have been flat for a continuous 60 minutes. This flat period is known as Cooling Down. Once the cooldown completes, a new Risk Window opens with your next trade.
Max Risk Limit
The Max Risk Limit is the maximum realised and unrealised loss you can carry within a single Risk Window. It is expressed as a percentage of your account's starting balance.
⚠️ Pay with Profits accounts: Max Risk on PWP accounts works the same way (Reference Balance, Risk Window, Cooling Down) but reaching the limit is an immediate hard breach with no strikes or warnings. See the Pay with Profits — Overview for details.
What Happens When You Reach the Limit
When your combined realised and unrealised loss within a Risk Window reaches the Max Risk Limit, all open positions are closed automatically.
What happens next depends on your account type:
Challenge-promoted and Instant Simulated Funded Accounts: A Pip Protector Strike is recorded. Your Max Risk Limit is halved, and the consequences escalate with each subsequent Strike. See the Pip Protector article for the full strike system.
Pay with Profits accounts: The account is terminated immediately. There are no strikes or escalation.
Dashboard Indicators
Default (Ready)
No positions are open. Your full risk allowance is available, and the Risk Window has not started.
Open Risk (Active)
Positions are open. The Dashboard shows your current risk utilisation against your Max Risk Limit in real time.
Flat (Cooling Down)
All positions are voluntarily closed. The cooldown countdown shows how long until your Risk Window resets.
