> ## Documentation Index
> Fetch the complete documentation index at: https://support.polyfundr.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Funded Account Risk Rules: Drawdowns, Targets, Limits
> The same risk rules from your challenge carry over to your funded account: payout threshold, drawdowns, max risk per trade, and inactivity limits.
The risk rules that applied during your challenge carry over to your funded account. Drawdown, max-risk, and inactivity are enforced the same way. Payout eligibility is tracked separately from those risk rules and is based on realized profit.
## Quick summary
30% realized-profit threshold, 90% split, USDC on Polygon, and progressive
payout caps from \$1,000 to \$5,000 gross per request.
10% daily drawdown, 20% total drawdown, 5% max risk per trade, and 14-day inactivity.
## Rules at a glance
| Rule | Value |
| ------------------ | -------------------------------------------------------------------- |
| Payout threshold | +30% of starting balance in realized profit after prior paid payouts |
| Max daily drawdown | 10% of the day's starting equity |
| Max total drawdown | 20% trailing from peak equity |
| Max risk per trade | 5% of starting balance |
| Max inactivity | 14 days |
## How each rule works
### Payout threshold
Your payout threshold is 30% of your funded account's starting balance. It is based on **realized profit only**. Open positions do not count until they are closed, and prior paid payouts are deducted from the realized-profit calculation.
| Account size | Profit target |
| ------------ | ------------- |
| \$10,000 | \$3,000 |
| \$25,000 | \$7,500 |
| \$50,000 | \$15,000 |
| \$100,000 | \$30,000 |
| \$200,000 | \$60,000 |
**Every** funded payout window also has to pass a consistency rule: no single
trading day's profit can be more than 40% of the eligible profit in that
window. It is a gate, not a breach, and never closes your account. Trading
steadily across a few days clears it. See [Funded payouts](/funded/payouts).
### Per-request payout caps
Each payout is the lowest of three limits:
* The cap ladder: 1st request up to \$1,000, 2nd up to \$2,000, 3rd and later up to \$5,000 gross.
* Half of the eligible profit you have earned since your last payout.
* Your eligible net after prior paid and pending payouts.
A 7-day cooldown applies between payouts. Profit above a cap is not lost: it
stays in the account and remains withdrawable in later windows. Full detail and
worked examples are on [Funded payouts](/funded/payouts).
Larger funded accounts still provide more trading room because drawdown and risk
limits scale with account size. The ladder reflects that more fairly over time
and grows the longer you trade well.
### Max daily drawdown
At the start of each UTC day, your equity is snapshotted. If your equity drops more than 10% below that level at any point during the day, your funded account is breached.
The daily drawdown resets each UTC midnight, not at a fixed clock time local to you. Plan your trading sessions accordingly.
### Max total drawdown
PolyFundr tracks your all-time peak equity. If your equity ever falls more than 20% below that peak, your funded account is breached. The peak only moves upward. Once you reach new highs, the floor rises with you.
Drawdown calculations are adjusted for payouts you have already received. Withdrawing profits does not lower your drawdown floor or move you closer to a breach.
### Max risk per trade
Before every trade, the platform checks the worst-case loss across all your open positions in the same market plus the new trade. If that combined exposure exceeds 5% of your starting balance, the trade is blocked.
This rule is enforced on the starting balance of your funded account, not on your current equity, so the absolute dollar limit stays constant.
| Account size | Max risk per trade |
| ------------ | ------------------ |
| \$10,000 | \$500 |
| \$25,000 | \$1,250 |
| \$50,000 | \$2,500 |
| \$100,000 | \$5,000 |
| \$200,000 | \$10,000 |
### Max inactivity
If more than 14 consecutive days pass without a qualifying trade, your funded account is breached. The inactivity clock starts when your funded account is activated and resets each time you place a qualifying trade.
## What happens if you breach a rule
If a rule violation is detected, your funded account is closed. You would need to purchase and pass a new challenge to receive a new funded account.
Beyond the numeric rules above, all funded trading is also subject to the [Fair Use Policy](/policies/fair-use). Bad-faith trading, masking identity, location, or account control, or exploiting bugs, latency, or pricing errors can void trades and payouts and close the account at any time, including after a payout.
The max risk per trade rule is enforced in real time. Trades that would breach it are blocked before they execute. Daily and total drawdown violations are evaluated continuously and will close the account immediately on breach.