Maximum Daily Loss vs. Maximum Account Loss
A 2-Step account has two key risk limits:
Maximum Daily Loss: Limits how much you can lose in a single day. Maximum Account Loss: Limits how much you can lose over the entire account cycle.
The two rules are calculated separately. If either limit reaches its trigger condition, the account will be closed according to the applicable rule.
Understand It in One Sentence
Suppose you have a 10,000 USDT account:
- Maximum Daily Loss: 5% → The daily base loss allowance is 500 USDT
- Maximum Account Loss: 10% → The minimum account equity threshold is 9,000 USDT
However, keep in mind:
Maximum Daily Loss is not simply based on how much the account has dropped today.
The system calculates it in real time based on:
Today’s realized P&L + current unrealized P&L − the profit buffer removed by today’s Payout
So, profits made during the day can provide a buffer against the daily loss limit, while unrealized profits and losses from open positions also affect the daily loss in real time.
Ⅰ. Maximum Daily Loss
The Maximum Daily Loss limits the amount of loss an account can sustain within a single UTC+8 trading day.
The trading day runs from:
00:00 to 00:00 the following day (UTC+8)
How Much Can You Lose in a Day?
The daily loss limit is determined by the initial account balance and the percentage specified in the plan:
Daily Loss Limit = Initial Account Balance × Maximum Daily Loss Percentage
For example:
Initial Account Balance:
10,000 USDT
Maximum Daily Loss Percentage:
5%
Therefore:
10,000 × 5% = 500 USDT
So the account’s base daily loss limit is:
500 USDT
The 5% used here is for illustration only. The actual percentage depends on the rules of the applicable plan.
Once the daily loss limit is determined, it does not change based on how much you earn or lose during the day, or changes in your current account equity.
Ⅱ. How Is Daily Loss Calculated?
The system calculates the following in real time:
Combined Result = Today’s Realized Net P&L + Current Unrealized P&L − Profit Buffer Removed by Today’s Payout
If the result is positive:
Daily Loss Used = 0
If the result is negative:
The absolute value of the negative result is the current Daily Loss Used.
For example, if the Daily Loss Limit is 500 USDT:
- Combined Result: −300 → Daily Loss Used: 300
- Combined Result: −499 → Not triggered
- Combined Result: −500 → Maximum Daily Loss triggered
The limit is triggered as soon as it is reached — it does not need to be exceeded.
Ⅲ. Which P&L Is Included?
1. P&L from Closed Trades
Profits and losses from trades that are closed or partially closed during the day are included in the calculation.
For example:
Today, you close a trade with:
+300 USDT
Then later close another trade with:
−200 USDT
Your realized trading P&L is:
+100 USDT
2. Trading Fees
Actual trading fees incurred from opening, adding to, reducing, or closing positions are also included in the daily loss calculation.
For example:
Trading loss:
−400 USDT
Trading fees:
−20 USDT
The actual Daily Loss Used is:
420 USDT
rather than just the 400 USDT trading loss.
3. Settled Funding Fees
Funding fee received:
Increases the day’s net P&L.
Funding fee paid:
Decreases the day’s net P&L.
4. Unrealized P&L from Open Positions
This is one of the easiest things to overlook.
Just because a position hasn’t been closed doesn’t mean its unrealized loss is excluded from the calculation.
For example:
Realized loss from closed trades:
−200 USDT
Current unrealized loss from an open position:
−250 USDT
Therefore:
−200 − 250 = −450 USDT
Daily Loss Used:
450 USDT
With a 500 USDT Daily Loss Limit, only:
50 USDT
of room remains.
Ⅳ. Profits Can Increase Your Daily Loss Buffer
This is the key point to understanding how the Maximum Daily Loss works.
Suppose:
Base Daily Loss Limit:
500 USDT
Realized profit today:
+300 USDT
No other P&L at the moment.
The actual remaining room before triggering the daily loss limit is:
500 + 300 = 800 USDT
In other words, you would first need to give back the 300 USDT in profit, and then lose another 500 USDT before the Maximum Daily Loss is triggered.
So:
Profits earned during the day can create a profit buffer for that day.
However, the base Daily Loss Limit remains:
500 USDT
It does not mean the plan’s Daily Loss Limit has increased to 800 USDT.
Ⅴ. A Complete Example
Suppose:
- Initial Account Balance: 10,000 USDT
- Maximum Daily Loss Percentage: 5%
- Daily Loss Limit: 500 USDT
Account activity for the day:
| Item | Amount |
|---|---|
| Realized Trading P&L | −160 USDT |
| Trading Fees | −15 USDT |
| Settled Funding Fees | −5 USDT |
| Current Unrealized P&L | −240 USDT |
| Profit Buffer Removed by Today’s Payout | 0 |
First, calculate today’s realized net P&L:
−160 − 15 − 5 = −180 USDT
Then add the current unrealized P&L:
−180 − 240 = −420 USDT
Therefore:
- Daily Loss Used: 420 USDT
- Daily Loss Limit: 500 USDT
- Remaining Daily Loss Buffer: 80 USDT
- Maximum Daily Loss: Not triggered yet
If the account loses another 80 USDT:
−420 − 80 = −500 USDT
The Maximum Daily Loss will be triggered.
Ⅵ. What Happens at 00:00 Every Day?
After 00:00 (UTC+8) each day:
- P&L realized during the previous trading day is no longer included in the current day’s Daily Loss calculation.
- The profit buffer removed by Payouts during the previous trading day is reset.
- Unrealized P&L from any positions that remain open continues to carry over.
Please note:
00:00 only resets the Daily Loss calculation records. It does not reset the account balance or clear unrealized P&L from open positions.
Ⅶ. What Should You Pay Attention to When Holding Positions Overnight?
Case 1: Carrying an Unrealized Loss Overnight
Suppose the Daily Loss Limit is:
500 USDT
Before 00:00:
Realized profit:
+400 USDT
Current unrealized loss:
−850 USDT
At this point:
+400 − 850 = −450 USDT
The limit has not been triggered yet.
After 00:00:
The +400 USDT realized profit from the previous trading day is no longer included in the current day’s Daily Loss calculation.
However:
The −850 USDT unrealized loss remains.
Therefore:
Combined Result = −850 USDT
This exceeds the 500 USDT Daily Loss Limit, so the Maximum Daily Loss is triggered.
Case 2: Carrying Unrealized Profit Overnight
Suppose the Daily Loss Limit is:
500 USDT
After 00:00, the current open position still has an unrealized profit of:
+450 USDT
Then:
- Daily Loss Used: 0
- Base Daily Loss Limit: 500 USDT
- Unrealized Profit Buffer: 450 USDT
- Current Remaining Daily Loss Buffer: 950 USDT
In other words, if the entire 450 USDT unrealized profit is given back, the account would simply return to 0 profit.
The base:
500 USDT Daily Loss Limit
would still remain.
So unrealized profit itself can provide a risk buffer.
Ⅷ. Does Payout Affect the Maximum
A Payout itself is not directly treated as a trading loss.
However, if the Payout includes profits generated earlier that same day, the portion being paid out can no longer be used as a daily loss buffer.
For example:
Daily Loss Limit:
500 USDT
Realized profit today:
+2,000 USDT
Payout requested:
1,500 USDT
After the Payout, the remaining:
500 USDT profit buffer
can still be used for the day.
Therefore, the current remaining Daily Loss buffer is:
500 base Daily Loss Limit + 500 profit buffer = 1,000 USDT
If the Payout comes from profits accumulated on previous days, and there is no profit generated that day:
The historical profit Payout does not directly reduce the base Daily Loss Limit for that day.
For detailed rules, please refer to the 2-Step Payout Rules.
Ⅸ. Maximum Account Loss
The Maximum Daily Loss controls:
How much the account can lose in a single day.
The Maximum Account Loss controls:
How much the account can lose over the entire account cycle.
Calculation:
Maximum Account Loss Amount = Initial Account Balance × Maximum Account Loss Percentage
Maximum Account Loss Threshold = Initial Account Balance − Maximum Account Loss Amount
For example:
Initial Account Balance:
10,000 USDT
Maximum Account Loss Percentage:
10%
Therefore:
Maximum Account Loss Amount:
10,000 × 10% = 1,000 USDT
Maximum Account Loss Threshold:
10,000 − 1,000 = 9,000 USDT
As long as the account’s real-time equity reaches or falls below:
9,000 USDT
the Maximum Account Loss will be triggered.
Ⅹ. Does the Maximum Account Loss Threshold Increase After You Make a Profit?
No.
For example:
Initial Account Balance:
10,000 USDT
Maximum Account Loss Threshold:
9,000 USDT
Later, the account grows to:
15,000 USDT
or even:
20,000 USDT
The Maximum Account Loss Threshold remains:
9,000 USDT
It does not automatically move up when the account becomes profitable.
XI. What’s the Difference Between Maximum Daily Loss and Maximum Account Loss?
| Comparison | Maximum Daily Loss | Maximum Account Loss |
|---|---|---|
| What it controls | Daily loss risk | Overall risk throughout the account cycle |
| Base calculation | Initial Account Balance × Maximum Daily Loss Percentage | Initial Account Balance × Maximum Account Loss Percentage |
| Can profits create a buffer? | Profits earned during the day can create a daily buffer | Does not change the fixed Maximum Account Loss Threshold |
| Does 00:00 reset it? | Daily Loss records are reset | Not reset |
| Unrealized P&L | Included in real-time calculations | Continuously affects account equity |
| Trigger | Combined result reaches the Daily Loss Limit | Real-time account equity reaches the Maximum Account Loss Threshold |
XII. Both Rules Must Be Followed
Maximum Daily Loss and Maximum Account Loss are two independent risk limits.
For example:
If the account loses only 200 USDT today, the Maximum Daily Loss is not triggered.
However, if the account has already accumulated significant losses and its current equity falls to the Maximum Account Loss Threshold:
The Maximum Account Loss will still be triggered.
The same applies in reverse:
Even if the account’s total equity is still far above the Maximum Account Loss Threshold, if the day’s Combined Result reaches the Daily Loss Limit:
The Maximum Daily Loss will still be triggered.
So you cannot focus on just one of the two rules.
The Simplest Way to Understand It
You can remember these two points:
Maximum Daily Loss: Measures how much of the available daily risk buffer has been used today.
Maximum Account Loss: Checks whether the account’s real-time equity has fallen to the final risk threshold.
Trading can continue normally only if neither limit has been triggered.