Every Tradeify Perps account has a 5% static maximum loss. If you chose the 3% daily loss limit, your account also has a daily cap based on your start-of-day balance. Both limits are checked against your equity, including open positions, in real time. If you reach either one, all your open positions are closed automatically and the account breaches. This page explains how each limit works, when the trading day starts and ends, and gives worked examples.
The 5% maximum loss
Your maximum loss is 5% of your account size. It's static: the floor is your initial account balance minus 5% of your account size, and it never trails. It doesn't move up with profits or down with payouts. There's no payout lock.
If your equity reaches or falls below the floor at any time, the account breaches.
The 3% daily loss limit
This applies only if you chose the 3% daily loss limit option. Your daily loss is capped at 3% of your start-of-day balance. The daily loss floor is your start-of-day balance minus 3% of it. It's recalculated at the start of each trading day and applies for the whole day.
If your equity reaches or falls below the daily loss floor during the trading day, the account breaches and is closed.
The 5% maximum loss still applies alongside the daily loss limit. Whichever floor your equity reaches first causes the breach.
With no daily loss limit, there's no daily cap. Only the 5% maximum loss applies.
The trading day
The trading day ends at 16:45 US Eastern time, and the next one starts straight away. Your start-of-day balance is set at 16:45 US Eastern time each day.
How limits are measured
Equity, in real time. Both limits are checked continuously against your equity: your balance plus or minus the profit or loss on open positions. An open losing position can cause a breach before you close it.
Start-of-day balance. This is your closed balance at 16:45 US Eastern time. It doesn't include open positions.
Breach on touch. A breach happens the moment your equity reaches a floor. It can't be undone by later profits, a recovery or a payout.
The platform's record. The platform calculates your balance, equity, start-of-day balance and floors, and its calculation is the binding record. Small differences from latency, rounding or reporting delays don't cancel a breach. You can still raise a dispute about a clear error.
Liquidation at a limit
When your equity reaches the maximum loss floor or the daily loss floor, the platform automatically liquidates all your open positions immediately, at the prices available at that moment. There's no other liquidation mechanism. During a news window or over the weekend, the leverage limits can also reduce or close positions; see "News and weekend leverage limits".
A breached account is no longer eligible for payouts, and any unpaid profit on it is forfeited. Payouts you've already received aren't affected. A loss-limit breach is a normal breach, so your Live Fund is kept.
Worked examples
Maximum loss floor. You have a $25K account. Your floor is $25,000 − $1,250 = $23,750. You make $2,000, so your balance is $27,000. The floor stays at $23,750. You then take a payout with a gross amount of $2,000. Your balance drops to $25,000, and the floor is still $23,750.
An open loss causes a breach. You have a $10K account with the 3% daily loss limit. Your start-of-day balance is $10,000, so your daily loss floor is $10,000 − $300 = $9,700. You hold a position with an open loss of $300. Your equity is now $9,700, so the account breaches even though you haven't closed the position. All open positions are liquidated.
Open positions don't count towards the start-of-day balance. At 16:45 US Eastern time, your closed balance is $10,400 and you hold a position with $200 of open profit. Your start-of-day balance is $10,400. Your daily loss floor for the new day is $10,400 − $312 = $10,088.
The maximum loss floor comes first. You have a $10K account with the 3% daily loss limit, so your maximum loss floor is $9,500. Your start-of-day balance is $9,700, so your daily loss floor is $9,700 − $291 = $9,409. Your equity reaches the maximum loss floor of $9,500 before it gets to the daily floor, so that's the breach.
Around the end of the day. A loss you take at 16:40 US Eastern time counts towards the trading day ending at 16:45. A loss at 16:50 counts towards the new trading day, measured from the start-of-day balance set at 16:45.