> For the complete documentation index, see [llms.txt](https://size.club/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://size.club/docs/after-you-win/drawdown-and-risk-rules.md). # Drawdown and risk rules Every Life carries two drawdown limits: a daily limit and a total limit. Either one, on its own, ends the Life if breached. Both are checked live against your equity: your balance including open positions, marked to market. The moment equity touches a line, even briefly, the Life breaches. There is no end-of-day grace, which is why the Terminal keeps your lines and headroom on screen. Limits are sized by tier: Alpha runs 5% daily and 10% total; the biggest accounts (Diamond and Ruby) run tighter at 4% and 8%. The full table is in [Product tiers](/docs/how-size-works/product-tiers-keys-and-lives.md). The examples below use the $100 Alpha Life (5% daily, 10% total). ## Daily drawdown A per-day loss limit that re-arms every day. * Today's line sits 5% below yesterday's daily close (your balance at the last 00:00 UTC). * If equity touches that line at any moment today, the Life breaches. * At 00:00 UTC the line is recalculated fresh from today's close. Yesterday's losses do not carry into today's limit. **Example.** Your Life closed yesterday at $105. Today's daily line is $99.75. Finish today at $110 and tomorrow's line becomes $104.50. ## Total drawdown A floor that trails your best daily close. * The floor sits a fixed amount below your high-water mark, your best daily close so far: 10% of the Life's starting size. * The high-water mark only updates at the daily close. A big spike during the day does not move your floor; where you close does. * The floor only moves up, and it tops out at your starting balance. Once you have closed far enough above start, your worst case on this rule is breaking even, not going backwards. * If equity touches the floor at any moment, day or night, the Life breaches. **Example.** A $100 Alpha Life starts with the floor at $90. You close a day at $103: the floor rises to $93. You close at $110 or higher: the floor reaches $100, your starting balance, and stops there. ## Payouts move your lines A Payout changes the math, so know these three rules before you withdraw: 1. **A Payout lowers your high-water mark by the gross amount.** Example: you started at $100 and your high-water mark is $200. You take a $70 Payout. Your new high-water mark is $130, and you climb from there. 2. **Tomorrow's daily line is calculated from the post-Payout close.** The day after a withdrawal, your daily room is measured from what is actually in the account. 3. **Today's daily line does not move when you withdraw.** A Payout drops your equity the moment it leaves, so a big same-day Payout could push you through today's line. Size warns you and caps a same-day Payout at your daily headroom: your equity minus today's daily line. Anything beyond that is available after the 00:00 UTC reset. ## Which line matters today Whichever is closer. Early in a Life's run the daily line usually binds first; once profits have lifted your floor, the total line can take over. The Terminal shows where you stand, and if a Life breaches, the app tells you which rule you hit and what drove it. ## What breach means | Term | Meaning | | ---------- | -------------------------------------------- | | Breach | Your equity touched a drawdown line | | Eliminated | The Life is closed. No further trading on it | | Earnings | Void on a breached Life | Earnings still sitting on a breached Life are void. Payouts are claimable on demand, so the protection is simple: withdraw profits as you make them. You never owe anything on a breach; the funded capital was the house's. ## Practical rules 1. Size so that normal volatility cannot reach a line. A brief wick through it still ends the Life. 2. Both limits watch open positions live. A position can breach you while you are away from the screen. 3. Near the daily line late in the day? Reduce risk and let the 00:00 UTC reset redraw it. You only get the reset if you get there. 4. Take Payouts regularly, inside your daily headroom. Banked profit cannot be voided by a later breach. 5. Every equipped Life runs live, even the ones you are not trading right now. Open positions on another equipped Life can breach it while you are busy elsewhere. Swap through all equipped Lives regularly and check their headroom. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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