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Excessive Risk

Is excessive or recovery-based risk-taking allowed?

Updated over 4 months ago

No. Traders may not add new positions while their account is in drawdown as a way to recover losses.

This applies within one account and across multiple accounts under the same trader.

Why it is prohibited

  • Artificially inflates risk beyond acceptable limits.

  • Can result in rapid equity depletion.

  • Creates unfair conditions in the evaluation process.

Consequences

Excessive risk-taking may result in account breach, payout rejection, or termination of the funded account.

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