Daily Loss & Maximum Account Loss

This document outlines the general risk control rules for all BitFrog Prop products. The risk calculation methods for 1-Step, 2-Step, and Instant are identical, with only the parameters differing. Product-specific parameters are shown in the table below.

BitFrog Prop accounts are subject to the following risk limits:

• Maximum Daily Loss: Limits the maximum loss allowed within a trading day (not applicable to Instant).
• Maximum Account Loss: Limits the maximum loss allowed throughout the account lifecycle.

Each rule is calculated separately. Once a trigger condition is reached, the account will be handled according to the applicable rule.

---

I. Product Parameter Comparison

Product	Maximum Daily Loss	Maximum Account Loss
1-Step	3%	6%
2-Step	5%	10%
Instant	None	10% (After reaching the 5% profit milestone, switches to a fixed loss limit. See Maximum Account Loss & 5% Profit Rule)

All examples below are calculated based on an initial account balance of 10,000 USDT, with 3% Maximum Daily Loss and 6% Maximum Account Loss (1-Step parameters). For other products/plans, apply their respective parameters.

---

II. Maximum Daily Loss

Instant does not have a Maximum Daily Loss limit. This section only applies to 1-Step and 2-Step.

1. Daily Loss Limit

The Daily Loss Limit is calculated based on the initial account balance:

Daily Loss Limit = Initial Account Balance × Maximum Daily Loss Percentage

Example: 10,000 USDT × 3% = 300 USDT

The Daily Loss Limit is fixed and will not be recalculated based on daily profits, losses, or changes in current account equity.

2. Daily Loss Calculation

The system calculates in real time:

Calculation Result = Today’s Realized Net P&L + Current Floating P&L of All Open Positions − Profit Buffer Removed by Today’s Payout

• When the calculation result is positive or 0: Used Daily Loss = 0
• When the calculation result is negative: Used Daily Loss = Absolute value of the result

Example with a 300 USDT Daily Loss Limit:

• Calculation Result = −200 USDT: Used Daily Loss = 200 USDT, limit not reached
• Calculation Result = −300 USDT: Maximum Daily Loss is triggered

The limit is triggered once the threshold is reached; exceeding the limit is not required. The system uses full internal precision for calculations. Displayed amounts may be rounded, so they should not be interpreted as providing additional risk buffer.

3. What P&L Is Included in Maximum Daily Loss Calculation

Today’s Realized Net P&L includes:

• Realized trading P&L from closing or reducing positions;
• Actual trading fees generated from opening, adding, reducing, or closing positions;
• Settled funding fees;
• Other account adjustments included according to the rules.

Floating profit and loss from all open positions are also included in the Daily Loss calculation in real time. An open position does not mean its floating P&L is excluded from Daily Loss. Unfilled orders and margin usage themselves are not treated as trading losses.

4. Daily Loss Buffer After Holding Positions Overnight

After 00:00 (UTC+8) each day, floating P&L from overnight positions remains and continues to count toward the new day’s Daily Loss calculation.

Immediately after 00:00, when there is no new realized P&L for the day and no Payout impact:

Available Loss Buffer = Base Daily Loss Limit + Current Overnight Floating P&L

Overnight Floating P&L at 00:00	Available Loss Buffer (Limit: 300)
+300	600
+100	400
0	300
−200	100
−300	0, Maximum Daily Loss triggered

• Overnight Profit: Floating profit carried into the new day acts as a profit buffer. For example, +100 floating profit increases the available loss buffer to 300 + 100 = 400. If the profit is fully given back, the original 300 Daily Loss buffer remains.
• Overnight Loss: Floating loss carried into the new day reduces the available loss buffer. For example, −200 floating loss leaves only 100 available. A carried-over floating loss of −300 triggers the Maximum Daily Loss limit.

5. Daily 00:00 Reset

The business day is calculated based on UTC+8 (00:00 to 00:00 next day). After 00:00 each day:

• The realized net P&L from the previous period no longer counts toward the current day’s Daily Loss calculation;
• The profit buffer removed by previous Payouts is cleared;
• Floating P&L from open positions remains and continues to count toward the current day’s Daily Loss calculation.

The 00:00 reset only updates Daily Loss tracking records. It does not reset account balance or automatically close positions.

6. Daily Profit Can Increase Available Loss Buffer

With a base Daily Loss Limit of 300 USDT, if the account has +200 USDT realized profit on the same day and no other impact:

Available Loss Buffer = 300 + 200 = 500 USDT

The additional 200 USDT comes from the current profit buffer. The base Daily Loss Limit remains unchanged.

7. Payout Impact on Maximum Daily Loss

Payout itself is not treated as a trading loss in the Daily Loss calculation. However, the realized profit included in a Payout request will no longer count as the daily profit buffer after being removed.

The impact is calculated when the Payout request is successfully created and the amount is locked. It does not wait for review completion or payment arrival.

Calculation:

• Available Daily Profit = Today’s Realized Net P&L − Accumulated Removed Daily Profit Buffer (minimum value: 0)
• Profit Buffer Removed This Time = The smaller value between the full Payout request amount and the Available Daily Profit (calculated based on the full requested amount, not the final profit share received)

Example with a 300 USDT Daily Loss Limit and no open positions or active orders before requesting Payout:

Scenario	Today’s Realized Net P&L	Full Payout Request Amount	Removed Profit Buffer	Calculation Result After Payout	Remaining Daily Loss Buffer
Withdraw Today’s Profit	+1,200	900	900	+300	600
Withdraw Historical Profit	0	1,000	0	0	300
Mix of Today’s & Historical Profit	+300	600	300	0	300

Payout Reversal: A full reversal on the same day restores the removed profit buffer from that Payout. A partial reversal on the same day restores the actual returned amount (up to the original removed amount). A reversal across different days does not recreate the previous business day’s records and only restores account balance and equity. While the amount remains locked, the removed profit buffer continues to apply. After 00:00 (UTC+8), the removed profit buffer record for that day is cleared with the new calculation cycle.

---

III. Maximum Account Loss

Maximum Account Loss limits the total cumulative loss allowed over the entire account lifecycle.

Maximum Account Loss Amount = Initial Account Balance × Maximum Account Loss Percentage

Maximum Account Loss Line = Initial Account Balance − Maximum Account Loss Amount

Example: 10,000 × 6% = 600 USDT, so the loss limit line is 10,000 − 600 = 9,400 USDT. The rule is triggered when account equity reaches or falls below 9,400 USDT.

• Does not reset at 00:00 each day;
• Does not move upward when the account becomes profitable;
• Overnight floating losses continue to affect account equity in real time and may trigger Maximum Account Loss.

---

IV. Differences and Simultaneous Application of Both Rules

Comparison	Maximum Daily Loss	Maximum Account Loss
Scope	One business day	Entire account lifecycle
Base Limit	Initial Account Balance × Product Percentage	Initial Account Balance × Product Percentage
Current Profit	Can create a Daily Loss buffer	Does not change the fixed loss limit line
Overnight Profit	Continues to increase available loss buffer	Continues to affect account equity in real time
Overnight Loss	Continues to reduce available loss buffer	Continues to affect account equity in real time
Daily 00:00	Daily Loss calculation resets	None
Trigger Condition	Calculation result reaches the Maximum Daily Loss limit	Account equity reaches the Maximum Account Loss line

The two rules are calculated independently and apply simultaneously. Even if the account is far from the Maximum Account Loss line, reaching the Daily Loss limit will trigger a violation. Likewise, even if the Daily Loss limit has not been reached, touching the Maximum Account Loss line will also trigger a violation.

After a trigger occurs, the platform may terminate the account or suspend related permissions. For details, please refer to the Account Termination Rules for each product.