The maximum daily loss is the daily loss limit for your Crypto Edge Evaluation account. If your account equity drops below this limit at any time within a 24-hour period, your account will be breached (all positions closed, trading disabled, and you must purchase a new evaluation).
Key Points to Understand:
Reset Time & Calculation:
The maximum daily loss is recalculated every day at 00:00 UTC.
At that time, we record your demo account equity and balance, whichever is higher becomes your baseline for the next 24 hours.
Demo Account Balance vs. Demo Account Equity:
Demo Account Balance → The amount in your account excluding open trades.
Demo Account Equity → The amount in your account including open trades.
Risk rules are anchored to the higher of your equity or balance, but breaches are measured based on equity.
Formula for Maximum Daily Loss:
1-Step Account: Higher of Account Balance or Equity at 00:00 UTC x 0.96
2-Step Account: Higher of Account Balance or Equity at 00:00 UTC x 0.95
This means if your equity drops below the calculated limit within the next 24 hours, your account is in breach.
This rule applies to both the 1-Step and 2-Step Evaluations, and it resets between evaluation stages, when you receive a funded Crypto Edge Performance Account and between payout requests.
EXAMPLES
Example 1 – Standard Scenario
You have a $100,000 demo account.
At 00:00 UTC, your recorded balance/equity is $105,000.
Your maximum daily loss is 4% ($4,200).
If, at any time within the next 24 hours, your equity falls below $100,800, your account is in breach.
Example 2 – Losing Start to the Day
You have a $100,000 demo account.
At 00:00 UTC, your recorded balance/equity is $98,000.
Your maximum daily loss is 4% ($3,920).
If your equity falls below $94,080 at any time in the next 24 hours, your account is in breach.
Example 3 – Profitable Day but Holding a Losing Position
You have a $100,000 demo account.
At 00:00 UTC, your recorded balance is $100,000.
Later that day, you make a 5% profit and your balance is now $105,000.
You open a trade that has an unrealized loss of $4,200 (which is 4% of $105,000).
Since this loss is greater than your maximum daily loss, your account breaches the risk rules at 00:00 UTC.
Final Notes:
Both Maximum Daily Loss and Maximum Drawdown are enforced simultaneously.
Slippage, commissions, swaps, and any other fees apply when calculating risk limits.
If your equity breaches the daily loss limit at any time within the 24-hour window, your account will be closed.
You must understand these risk rules before attempting an evaluation to avoid unnecessary breaches.