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Rules in the Funded Phase

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Written by Upcomers
Updated this week

Once traders reach the funded phase, certain rules are in place to encourage disciplined and sustainable trading. Below is a list of key rules all traders must follow to maintain their funded account and continue receiving payouts.


Best Day Rule

To be eligible for a payout, no single trading day can represent more than 40% of your total profits.

This rule does not breach your account if exceeded, but it will delay your payout until your profit distribution becomes more balanced.


3% Rule

To manage risk effectively in the funded phase, traders must not lose more than 3% of their account balance in a single trade.

  • Single Trade Limit: 3% of your initial funded account balance

  • Splitting trades into multiple positions does not bypass this rule — they are counted as one trade.

  • Violating this rule is a hard breach and will lead to account termination.

Example:

On a $100,000 account, the maximum loss allowed on any single trade is $3,000.


1% Risk Limit Rule (High-Risk Traders Only)

This rule is applied selectively to traders whose trading activity shows signs of over-risking, overexposure, or impulsive behavior.

Once activated, the trader must:

  • Risk no more than 1% of their balance across all open trades

  • Set a stop-loss (SL) immediately on every position

  • Follow responsible and sustainable trading practices

In some cases, leverage may also be reduced on the affected account to help limit overexposure and reinforce proper risk management.

This rule is not automatic. If triggered, you’ll be notified via email and it will only apply to the specific account mentioned.

Failing to comply may result in:

  • Termination of your account

  • Profits from violating trades being removed

This rule is designed to help traders transition toward a more professional trading approach.


Drawdown Rules

Drawdown limits are enforced in the funded phase, just as they were during the challenge.

You must respect both daily and maximum drawdown rules at all times.

Breaching these limits results in an immediate loss of the funded account.

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