- Applies to First Three Payouts Only: The safety net requirement must be observed for the first three approved payouts. As of the fourth payout, the safety net requirement is no longer applicable.
- Safety Net Definition: The safety net is defined as the amount equivalent to the drawdown based on the account size plus an additional $100.
- Applies to All Accounts: This rule applies to both new and existing accounts, ensuring consistency for traders as they progress.
- Minimum Payout: If you have reached the safety net threshold, you can request a payout of at least $500, even if it exceeds the safety net amount.
- Payouts Above Minimum:
- To request a payout over $500, the balance must exceed the safety net threshold by an amount equal to the additional amount requested.
Example:
For a $50,000 account, the drawdown is $2,500, so the safety net is calculated as $2,500 + $100 = $2,600.
A trader with this account reaches a balance of $52,600. The trader can request the minimum payout of $500, leaving the balance at $52,100. This is acceptable, even though it encroaches on the safety net by the $500 allowed.
To request a higher amount, for example, $1,200, the balance must exceed the safety net by the additional amount requested above the minimum of $500. In this case, the additional amount is $700, meaning the account balance must be at least $53,300. Requesting the $1,200 would leave the account balance at $52,100, which is still acceptable since it encroaches on the safety net by no more than the $500 allowed.