Maximum Loss & EOD Floor

Maximum Loss protects the account from crossing its account-level loss boundary. Under the current standard Rapid, Classic, and Discipline configurations, the Maximum Loss floor begins below starting capital, can move upward through the FairTicks EOD progression model, never moves downward, and is capped at starting capital. Instinct uses Intraday Trailing Drawdown instead.

The rule in one sentence

Key terms

Starting capital

Starting capital is the simulated account capital recorded when the account is created, such as $25,000, $50,000, or $100,000.

Maximum Loss limit

The Maximum Loss limit is the configured account-level loss distance. Its exact amount depends on the account family, size, and Account Snapshot.

Maximum Loss floor

The Maximum Loss floor is the active equity boundary that the account must remain above.

Reaching or crossing that floor with live equity can trigger a Maximum Loss breach.

Live equity

Live equity reflects the account's current balance together with unrealized PnL from open positions.

Because Maximum Loss breach detection uses live equity, an open losing position can cause the account to breach before the position is manually closed.

EOD floor progression

EOD floor progression is the mechanism that can raise the Maximum Loss floor after the account records a higher realized closed balance at the FairTicks daily reset.

Floating intraday profit does not by itself raise this floor.

Which current account families use Maximum Loss?

Current standard Maximum Loss distances

Under the current standard paid templates, the configured Maximum Loss distances are:

Initial Maximum Loss floor

When Maximum Loss is enabled, the initial floor is based on:

Example 1 — initial floor

If live equity reaches $47,500 or lower, the Maximum Loss breach condition is met.

How the Maximum Loss floor moves upward

At the FairTicks daily reset, the system evaluates the account's realized closed balance together with its previous EOD history.

A higher eligible closed balance can produce a higher Maximum Loss floor.

This means:

• A higher realized daily close can raise the floor.
• A lower later close cannot lower the floor.
• The floor cannot rise above starting capital.

Closed balance vs live equity

Two different account values are used for two different purposes.

The Maximum Loss floor never decreases

Once the Maximum Loss floor has increased, a later losing day does not move it back down.

Capital lock

The Maximum Loss floor is capped at the account's starting capital.

Once the calculated floor reaches that level, it cannot continue rising above starting capital.

Worked example — Classic 50K from start to capital lock

Open PnL can breach Maximum Loss

The account does not need to realize the loss first.

Maximum Loss breach detection uses live equity, so unrealized losses matter immediately.

Floating profit does not raise the floor

The open profit increases the distance between live equity and the current floor, but does not move the EOD floor upward by itself.

Realized profit can raise the floor at EOD

Instinct uses a different account-level loss rule

Current standard Instinct does not use the EOD Maximum Loss rule described on this page.

Instinct uses its Intraday Trailing Drawdown framework instead.

Review Intraday Trailing Drawdown for the Instinct-specific rule.

What happens after a payout?

On a Qualified Account, payout changes the account balance. It does not remove the account's risk framework.

FairTicks payout eligibility includes reserve and payout-capacity controls specifically so the account retains sufficient post-payout room under its applicable rules.

Daily Loss vs Maximum Loss

Daily Loss and Maximum Loss are separate rules. An account can have comfortable room under one while being much closer to the other.

Maximum Loss vs Intraday Trailing Drawdown

Both rules protect the account from excessive loss, but they use different mechanisms.

Near-breach warnings and Protection Pause

FairTicks can classify how much of the available risk buffer has been consumed.

At the Critical threshold, FairTicks can activate the 10-minute Protection Pause under the applicable protection logic.

During that protection state, new exposure can be restricted while risk-reducing actions remain available according to the platform rules.

What happens on a Maximum Loss breach?

If live equity reaches or falls below the active Maximum Loss floor, FairTicks can process the corresponding hard-risk breach.

1. The Maximum Loss breach is recorded.
2. Remaining open positions can be closed through the official breach process.
3. The account moves to BREACHED.
4. Normal trading is disabled.
5. The breach remains part of the account history.
6. A Training reset can be available only where the account and reset policy permit it.

How to read Maximum Loss in the dashboard

Common mistakes to avoid

Common questions

Does Maximum Loss use balance or equity?

Both values matter for different parts of the rule. The EOD progression uses realized closed-balance information, while hard-breach detection uses live equity.

Can an open position breach Maximum Loss?

Yes. An unrealized loss can push live equity to or below the active Maximum Loss floor.

Does floating profit move my Maximum Loss floor upward?

No. Floating profit can increase live equity and current buffer, but the Maximum Loss floor does not move upward from open profit alone.

When can the Maximum Loss floor move upward?

It can move upward through the EOD progression process when the account records an eligible higher realized closed balance.

Can the Maximum Loss floor move back down?

No. Once the active Maximum Loss floor rises, it does not decrease.

What does capital lock mean?

It means the Maximum Loss floor has reached the account's starting capital, which is the current cap for the EOD floor.

Can the Maximum Loss floor rise above starting capital?

No. Under the current standard EOD progression logic, it is capped at starting capital.

Does Rapid use Maximum Loss?

Yes. Rapid uses Maximum Loss even though Daily Loss is disabled under the current standard Rapid configuration.

Does Instinct use Maximum Loss?

No. Current standard Instinct uses Intraday Trailing Drawdown instead.

Is Maximum Loss the same as Daily Loss?

No. Daily Loss protects the current trading day. Maximum Loss protects the broader account lifecycle.

What is Classic's current Daily Profit Room?

10% under the current standard Classic configuration.

What is Discipline's current Daily Profit Room?

25% under the current standard Discipline configuration.

Is Maximum Loss the same as Intraday Trailing Drawdown?

No. Maximum Loss uses EOD progression on Rapid, Classic, and Discipline. Instinct uses a real-time Intraday Trailing Drawdown model.

What happens if the market recovers after a breach?

The breach is not reversed. FairTicks uses the official account state when the hard-risk condition was triggered.

Why did my Maximum Loss floor rise?

Your account recorded an eligible higher realized closed balance during the EOD progression process, creating a higher protected floor.

Why did the floor not rise while I had a large open profit?

Open profit is unrealized. It increases live equity, but does not raise the EOD Maximum Loss floor by itself.

Can payout reduce my room above Maximum Loss?

Yes. Payout can reduce account balance, so post-payout risk room should always be reviewed before new trading. FairTicks also applies payout reserve controls when determining eligible payout capacity.

Summary

Maximum Loss is the account-level loss boundary used by current standard Rapid, Classic, and Discipline accounts.

The floor:

• begins at starting capital − Maximum Loss limit;
• can rise through EOD progression after eligible higher realized closed balances;
• never moves downward;
• is capped at starting capital;
• is breached when live equity reaches or falls below it.

Instinct does not use this EOD Maximum Loss model. It uses Intraday Trailing Drawdown instead.