Definition of relevant concepts and calculations

Maximum Daily Loss

This rule can also be referred to as the "Trader’s Daily Stop Loss." According to our rules, at any point during the day (UTC+8), the sum of all closed position P&L and the floating P&L of open positions must not reach the maximum daily loss limit set by the challenge rules. The calculation formula is:

Current Daily Loss = Daily Closed P&L + Daily Floating P&L of Open Positions

For example, a PropW challenge account has a quota of 200,000 USDT, and the daily maximum loss limit is 10,000 USDT as per the challenge requirements. If the user incurs a loss of 8,000 USDT from closed trades on that day, the account’s floating loss must be controlled within 2,000 USDT.

This means the daily loss of the challenge account also includes the P&L of open positions. If the account makes a profit of 5,000 USDT from closed trades on that day, the maximum floating loss the account can withstand that day is 15,000 USDT, but it must not exceed this amount.

Note: The daily maximum loss resets at 00:00 (UTC+8)!

For instance, suppose a user has a profit of 4,000 USDT on a given day. On the same day, the user has an open position with a current floating loss of 13,000 USDT. On that day, the user does not violate the maximum daily loss requirement because the daily loss is 9,000 USDT (closed profit of 4,000 USDT + open loss of -13,000 USDT). However, if the user continues to hold this position after 00:00 UTC+8 with an open loss of 13,000 USDT and no new floating profit or closed profit is generated, it will violate the maximum daily floating loss limit. This is because the previous day’s profit of 4,000 USDT does not carry over to the new day, and the open loss of 13,000 USDT exceeds the daily maximum floating loss limit of 10,000 USDT.

In summary, the establishment of the maximum daily floating loss data provides traders with sufficient trading space while ensuring daily risk limits. Given the extreme volatility of the cryptocurrency market, both the platform and traders benefit from this rule.

Maximum Account Loss

This rule can also be referred to as the "Account Stop Loss." During the account’s existence, the net value of the trading account must not fall below the initial account balance multiplied by the maximum account loss requirement ratio. For a PropW challenge with a balance of 100,000 USDT (maximum account loss requirement of 8%), this means the minimum net account value is 92,000 USDT. Similarly, this is the sum of closed P&L and open position P&L (account net value). The calculation logic is the same as the daily maximum loss; the only difference is that it is not limited to a single day but applies to the entire challenge period. This limit includes fees and funding costs.

The maximum account loss requirement provides traders with enough room to prove their account’s suitability for investment. It acts as a buffer, allowing traders to continue trading even if they incur some initial losses. Investors can rest assured that the trader’s account loss will never exceed the requirement under any circumstances.

Profit Target

The profit target refers to the profit a user achieves through trading while meeting other trading restrictions. Note that this profit must be realized (closed); any floating profit will not be counted.

For example: A user participates in the regular mode of the first stage of the PropW challenge with an account quota of 200,000 USDT and a profit target of 20,000 USDT. This means that after completing all closing operations, the user’s PropW account balance must be no less than 220,000 USDT.

Impact of Profit Withdrawal on the Challenge

When a user applies to withdraw account profits in the third stage (i.e., withdrawal of closed profits), this amount will no longer be counted as closed profit. This affects the calculation of the maximum daily loss and maximum account loss requirements. The specific rules are as follows:

• If daily closed profit ≥ withdrawal amount, the daily closed profit will be deducted by the withdrawal amount.

• If daily closed profit < withdrawal amount, the daily closed profit will be considered as 0.

Example: A user’s challenge account has 10,000 USDT, and the daily maximum loss requirement is 500 USDT.

• If the daily closed profit is 2,000 USDT and the user withdraws 1,500 USDT on the same day, the maximum daily loss must not exceed 1,000 USDT ((2,000 - 1,500) + 500).

• If the daily closed profit is 0 USDT and the user withdraws 1,000 USDT from the previous day’s closed profit, the maximum daily loss must not exceed 500 USDT (daily maximum loss requirement of 500 USDT).