Loss limits & trading rules

Balance and equity#

Balance is realized simulated cash: initial capital plus realized trading results, less fees, plus funding and separately recorded cash adjustments. Open-position profit or loss changes equity, not realized cash.

Equity normally combines balance and open P&L marked using Hyperliquid mark prices. Cross and isolated compartments have explicit simulated-deficit handling; an unsettled negative compartment is not allowed to take another compartment’s collateral. Those adjustments are disclosed in analytics. See the margin model.

The daily loss limit#

At 00:00 UTC the system establishes the day’s opening cash balance after the midnight funding settlement. Your daily trading-loss allowance is 3% of that raw opening balance. Open P&L, fees and funding count toward the limit.

Daily equity floor = 0.97 × UTC opening balance
                   + signed payout cash flows today

A payout reserve lowers cash and this daily floor by the same amount. A refund raises both by the same amount. These movements do not spend or replenish the day’s trading-loss allowance.

The reset uses UTC, not your device’s local time. If the midnight baseline is awaiting reconciliation, the interface shows it as pending instead of presenting yesterday’s floor as today’s.

The total loss limit#

Total equity floor = 0.94 × initial account size

This floor is fixed relative to initial capital. It does not trail a profit peak and is not lowered by payouts. For a $25,000 account it remains $23,500.

What happens at a loss floor?#

Equity at or below either floor permanently suspends the account. The server records the breach, cancels remaining entry orders and closes exposure against available depth. A recovery in price or a later payout refund does not reactivate a suspended account.

Risk checks continue while you are offline, but they are sampled. Source outages, worker timing and execution depth can delay detection or closing. A displayed limit is not a guarantee that the final balance stops exactly at that amount.

Permitted use#

There is no challenge, required consistency score, mandatory stop loss, minimum holding period or time limit. News, overnight and weekend trading are permitted when the market has valid data.

Copy trading, account sharing, cross-account hedging and exploiting delayed prices are not allowed. The server rejects opposing resulting positions in the same market across one owner’s accounts. It does not claim comprehensive automated detection of external-account hedging, unrelated-user copying, collusion or identity sharing.