Does FundingPips's Maximum Total Loss include unrealized losses from open positions?

Yes, the maximum total loss includes both realized losses from closed trades and unrealized losses from open positions. Your account equity must never drop more than 10% below the initial balance, regardless of whether positions are open or closed.

What happens if I breach the Maximum Total Loss?

Your FundingPips account will be immediately terminated and you will lose access to the funded capital. This applies to both Challenge and Funded phases, and there is no grace period or opportunity to recover from this breach.

Does the Maximum Total Loss limit reset when I make profits?

No, the 10% maximum total loss is always calculated from your original starting balance, not your current balance. Even if you grow a $25,000 account to $30,000, the breach point remains at $22,500 throughout the entire trading period.

Is Maximum Total Loss calculated from account balance or equity?

The rule is calculated from account equity, which includes unrealized P&L from open positions. The initial reference point is your starting account balance, but the ongoing measurement uses current equity to determine if you've exceeded the 10% loss threshold.

Updated 2026-03-08

FundingPips Maximum Total Loss Rule Explained

FundingPips

Quick Answer

FundingPips's Maximum Total Loss rule limits total drawdown to 10% of initial account balance.

This rule is calculated from your starting account balance and includes both realized and unrealized losses. If your account equity drops 10% below the initial balance at any point, your account will be terminated immediately.

Key Rule Details

Limit

10%

Dollar Value ($100,000)

$10,000

Basis

Initial balance

Resets

Never (static)

Breach

Account terminated

Calculation Example

Account Size: $100,000 — Maximum Total Loss: $10,000

Account Size	$100,000
Maximum Total Loss Limit	$10,000
Scenario: Closed P&L	$-2,800
Scenario: Floating P&L	$-5,200
Total Exposure	$-8,000
Remaining Buffer	$2,000

Limit used:80%

Common Mistakes

Ignoring Unrealized Losses

Traders focus only on closed trades while holding large losing positions. The maximum total loss includes floating P&L, so a $10,000 account terminates if open positions push equity below $9,000 even without closing trades.

Miscalculating Starting Balance

Some traders think the rule resets after profits or applies to current balance instead of initial balance. On a $25,000 account, the breach point stays at $22,500 even if you grow the account to $30,000.

Weekend Gap Risk

Traders hold positions over weekends without considering gap risk. A $50,000 account holding overleveraged EUR/USD can breach the $45,000 limit instantly if markets gap down on Monday open.

Cumulative Small Losses

Traders underestimate how multiple small losing days accumulate toward the limit. Taking consistent $200-300 losses on a $10,000 account can gradually approach the $9,000 breach point without dramatic single-day moves.

Protection Strategies

Set Personal 8% Buffer Limit

Stop trading when you reach 8% drawdown instead of the full 10% limit. This gives you a $200 cushion on a $10,000 account and $500 buffer on a $25,000 account to handle any final position exits.

Use 2% Maximum Position Size

Limit individual trade risk to 2% of account balance to prevent single-trade breaches. On a $50,000 account, maximum risk per trade should be $1,000, keeping you well within the $5,000 total loss limit even with multiple losing trades.

Set Equity-Based Account Alerts

Configure trading platform alerts when account equity drops to 8% drawdown levels. Set alerts at $9,200 for $10,000 accounts and $23,000 for $25,000 accounts to monitor proximity to the breach point.

Avoid High-Impact News Trading

Skip trading during major economic releases like NFP, FOMC, or central bank announcements. These events can cause 100+ pip moves that could push overleveraged positions beyond the 10% maximum loss limit instantly.

Related Rules

Maximum Daily Loss

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Profit Target (Phase 1)

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Profit Target (Phase 2)

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Frequently Asked Questions

Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on FundingPips's official website before purchasing a challenge. Updated 2026-03-08.