In what instances would I breach the stop-loss obligation rule?

Stop-Loss Obligation – Rule Violations

You will breach the Stop-Loss Obligation rule in the following situations:

Failure to Set a Stop-Loss

• A stop-loss must be placed for every position in full.
• Opening a trade without setting a stop-loss is a direct violation of the rule.

Stop-Loss Not Set Within 5 Minutes

• You have 5 minutes from entering a trade to set a valid stop-loss.
• If it is not set within this timeframe, the rule is breached.

Exceeding the 3% Maximum Risk

• The maximum risk per position is limited to 3% of the initial account balance.
• • On Cleo, a position represents the combined exposure of all open trades under the same altcoin.
  • On Bybit, exposure may be created through one or multiple open orders under the same asset.
• If your stop-loss would result in a potential loss exceeding 3% of your account balance, this is considered a violation.
• Once a stop-loss is set, the 3% risk is immediately calculated and monitored.

Canceling the Stop-Loss Without Adjusting the Position

• Canceling a stop-loss without modifying the position (e.g., reducing size or adding to the trade) does not reset the 5-minute allowance.
• To remain compliant, always edit the existing stop-loss instead of removing it.