Are there any other rules for a funded account?
Funded accounts do not have a profit distribution rule. However, the following exposure limits apply to ensure responsible risk management.
Maximum Exposure
A trader may allocate up to 25% of the initial account balance as total margin across open positions.
Example:
For a $10,000 account, the maximum margin exposure is $2,500.
Exceeding this limit may result in penalties or account termination.
Cumulative Open Position Value
The total notional value of all open positions must not exceed 2× the initial account balance.
Example:
For a $10,000 account, total open positions cannot exceed $20,000.
Breaching this limit may result in penalties or account termination.
Why Are These Rules Important?
These rules are designed to:
- Prevent excessive risk-taking and gambling behavior
- Promote responsible trading and disciplined leverage management
- Protect account capital while maintaining trading flexibility
When Do These Rules Apply?
These rules apply only after completing the Challenge and Verification phases, once you are actively trading a funded account.
What Happens If the Rules Are Violated?
Violations may result in penalties or termination of the funded account.
Ongoing Rule Applicability
The following rules from the Challenge phase continue to apply during the funded (live) phase:
- Daily Drawdown
- Maximum Loss
- Maximum Risk per Trade
- Stop-Loss Obligation
Compliance with these rules is required at all times.
Important
The Maximum Exposure rule and Cumulative Open Position Value limits apply only to funded accounts and do not apply during the evaluation phase.
