Protocol Rules

You set the account size and the drawdown percentage at activation. From that point the protocol enforces the floor against the account’s live equity, and the allowed markets and leverage caps at order entry. An off-chain risk engine does the sampling and the calls, but every floor and every close is the contract’s decision. You cannot soften them afterwards, and neither can the trader.

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What the protocol enforces

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The floor you priced

The floor starts at exactly the account size minus your buffer, so B is sized to cover the whole of the designed fall. It then rises as the trader banks gains: 30 % of every gain above account size locks into it, and it does not come back down until the trader claims a withdrawal, which resets it to account size. A worked example is on Account Parameters and Fees. The floor moves during the session rather than once a day. See Funded Account Rules for how a new peak is accepted.

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Daily drawdown

Daily drawdown is not a parameter you set. An account you sponsor carries a second floor at half the trailing percentage, measured from the day’s opening equity; an account a trader funds themselves has none. Whichever floor is higher is the one that applies, and the two are never added together. The daily floor also protects your buffer. It closes the account once a day’s loss reaches half the trailing percentage, so on an account that opened the day at its size a daily-drawdown close spends about half of B and returns the rest to you. Closed at its floors, an account gives back the whole of B only over several days. A gap or a liquidation the close cannot catch in time can take it in one, and anything beyond B lands on LPs, not on you.

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Markets and leverage

There is no flat leverage cap. Each listed perp carries its own maximum, taken from the live protocol list, and both the market and the leverage are checked when the order is placed. A disallowed order is refused, which means it costs the trader a trade and costs you nothing. Trading outside the list is not a closure reason. If a market is removed from the list while the trader holds a position on it, that position is closed out and the rest of the account carries on trading.

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What closes an account

Two closures forfeit the profit still in the account: a drawdown breach, and the trader asking to close. Four do not: the subscription expiring, the trader cancelling it, an admin closure, and a profit target being reached. Your unused buffer returns in every one of the six. What changes is who receives the profit that was in the account when it closed. The amounts are on Account Parameters and Fees, the trader’s side on Profit and Payouts.

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The rules you keep

The protocol enforces capital rules and nothing else. Everything that makes the product yours stays yours: the evaluation and its price, minimum trading days, consistency rules, a daily limit stricter than the protocol’s, and the decision about who gets an account at all. When a trader breaks one of those, you are the one who acts on it. One of your rules can sit on-chain if you want it there. A profit target set at activation closes the account on the ordinary split as soon as the trader reaches it.

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