Maximum Daily Loss & Maximum Account Loss

2-Step applies both a Maximum Daily Loss and a Maximum Account Loss. The specific limits are based on the purchased plan.

Maximum Daily Loss

At 00:00 (UTC+8) each day, the system records the account equity as the starting equity for the day.

• Maximum Daily Loss = Account Size × Maximum Daily Loss Rate
• Daily Loss Limit = Starting Equity for the Day − Maximum Daily Loss

Current equity includes the account balance, unrealized P&L, trading fees, and funding fees. If current equity falls to or below the daily loss limit, the account will be terminated.

Example 1: Direct Loss on the Day

For a 10,000 USDT account with a 5% Maximum Daily Loss:

• Maximum Daily Loss: 10,000 × 5% = 500 USDT
• Starting Equity at 00:00 (UTC+8): 10,000 USDT
• Daily Loss Limit: 10,000 − 500 = 9,500 USDT

When the account equity falls to 9,500 USDT, the Maximum Daily Loss is triggered.

Example 2: Drawdown After a Profitable Day

Suppose the account equity is 10,300 USDT at 00:00 (UTC+8) the next day:

• Daily Loss Limit: 10,300 − 500 = 9,800 USDT

Even if the account equity remains above the initial account size, the Maximum Daily Loss is triggered if equity falls to 9,800 USDT.

Example 3: Giving Back Unrealized Profits on an Overnight Position

Suppose an overnight position brings the account equity to 10,400 USDT at 00:00 (UTC+8):

• Daily Loss Limit: 10,400 − 500 = 9,900 USDT

If unrealized profits are later given back and account equity falls to 9,900 USDT, the Maximum Daily Loss will also be triggered.

Maximum Account Loss

The Maximum Account Loss is based on the initial account size and does not increase when the account generates profits.

• Maximum Account Loss = Account Size × Maximum Account Loss Rate
• Maximum Account Loss Limit = Account Size − Maximum Account Loss

For a 10,000 USDT account with a 10% Maximum Account Loss:

• Maximum Account Loss: 1,000 USDT
• Maximum Account Loss Limit: 9,000 USDT

When account equity falls to or below 9,000 USDT, the account will be terminated.

Both Loss Limits Apply Simultaneously

The Daily Loss Limit and Maximum Account Loss Limit apply simultaneously. The higher of the two serves as the effective limit at any given time.

For example, if account equity is 9,300 USDT at 00:00 (UTC+8):

• Daily Loss Limit: 9,300 − 500 = 8,800 USDT
• Maximum Account Loss Limit: 9,000 USDT

Since the Maximum Account Loss Limit is higher, the account will be terminated when equity falls to 9,000 USDT.