Skip to main content

Lock Upon Payout - Instant Prime Funding

More information on how payouts impact your max drawdown on your Instant Prime Funding Account.

Written by Daniel

In Instant Prime Funded Accounts, when you request a payout, your maximum trailing drawdown locks in at the starting balance. From the moment you make a payout, the drawdown no longer trails with your account growth, regardless of how much you continue to grow your account.

Lock Upon Payout: after your first payout, the maximum drawdown is fixed at your initial account balance. Only the profit left in the account is your remaining drawdown room.

How the Lock Upon Payout Works

When you grow your account and request a payout, the maximum drawdown locks in at your initial account balance. Here are two examples to illustrate this:

Item

Example 1

Example 2

Initial Balance

$10,000

$10,000

Balance After Gains

$10,800

$10,800

Payout / Withdrawal Request

$400

$750

Locked Drawdown

$10,000

$10,000

Drawdown Room Left

$400

$50

In Example 1, after your $400 payout, your maximum drawdown locks at $10,000, leaving you with $400 of drawdown room before reaching your limit. In Example 2, with the larger withdrawal, your drawdown remains locked at $10,000, leaving you with only $50 of drawdown room before breaching your account.

Important Considerations

We understand that you may be eager to withdraw your gains, but we want to make sure you do not put your account at risk. If your drawdown reaches your starting balance, it could potentially lead to a breach on your next trade(s). To avoid this, we recommend the following:

  • Leave some gains as a buffer: instead of withdrawing all your profits, consider leaving a portion in your account. This gives you more room to trade safely and reduces the risk of breaching your drawdown limit.

  • Grow your account further: another option is to grow your account by an additional 5-10% before taking your payout. This provides a larger cushion and increases your ability to compound your gains over time.

Of course, the decision is entirely yours. We will always process your payout requests, but our goal is to see you achieve long-term, consistent success with many payouts in the future.

Related articles

Did this answer your question?