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.

Account Type

Max Risk Limit

Enforcement

Most Simulated Funded Accounts

2%

Pip Protector (3 strikes)

50K, 100K, and 150K Instant accounts (created on or after 13 June 2026)

1%

Pip Protector (3 strikes)

Pay with Profits — Challenge

3%

Hard breach

Pay with Profits — Simulated Funded Account

Set by Risk Tier

Hard breach

⚠️ 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.

Practical Example

A trader has a $10,000 Simulated Funded Account with a 2% Max Risk Limit = $200. The percentage depends on your account type (see the table above), but the calculation is identical for every account type — only the limit and what happens when you reach it differ.

Step

What Happens

Max Risk Calculation

1. Open first position

The trader's balance is $10,000 when the first trade opens.

Reference Balance = $10,000. Limit = 2% = $200. Risk Window opens.

2. Trade moves against the trader

The position is $120 down and still open.

Window loss = $120 (unrealised). $80 of the $200 remains.

3. Trade recovers into profit

The position turns around; equity reaches $10,150 and the trader closes.

New high → Reference Balance rises to $10,150. Loss resets to $0 against the new baseline. Profits do not create extra room to lose — the floor moves up with you.

4. Re-enters within the same window

A new position is opened within 60 minutes, so the same Risk Window continues. It is $60 down realised (after a partial close) plus $90 down unrealised.

Window loss = $60 + $90 = $150, measured from $10,150. $50 of the $200 remains.

5. Max Risk Limit reached

The remaining position falls further, taking the combined loss to $200.

Reference Balance $10,150 − current equity $9,950 = $200. The limit is reached and all open positions close automatically.

6. What happens next

The outcome depends on the account type.

A Pip Protector Strike (challenge-promoted and Instant accounts) or an immediate hard breach (Pay with Profits). See What Happens When You Reach the Limit above.

ℹ️ Max Risk counts realised and unrealised losses together and accumulates them across every trade in the same Risk Window. The Window only resets after you have been flat for a continuous 60 minutes (Cooling Down), at which point your next trade starts a fresh Window with a new Reference Balance.

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.

Frequently Asked Questions