When Fund Managers create a new fund, they must complete the "Set Up Account" step, which requires configuring two essential risk parameters: Maximum Drawdown and Stop-Loss Level. Understanding these parameters is crucial for both Fund Managers and potential investors.
What Are These Parameters?
Both Maximum Drawdown and Stop-Loss Level are mandatory fields during fund creation:
Maximum value: Both parameters can be set up to 100%
Purpose: These parameters serve as risk disclosure indicators to help investors assess whether a fund aligns with their risk tolerance
Important note: These parameters are informational only and do not trigger any automated risk control actions (such as automatic stop-loss or position closure) during fund operation
How Investors View Risk Information
When a potential investor opens a current Funds Management Invitation Link and the fund page loads, it may show five risk-related indicators according to the current fund record and available fields:
Return Rate: The fund's performance returns
Expected Maximum Drawdown: The Maximum Drawdown value set by the Fund Manager during fund creation
Actual Maximum Drawdown: The fund's real maximum drawdown since inception
Expected Stop-Loss: The Stop-Loss Level value set by the Fund Manager during fund creation
Risk Level: A 1-10 scale (1 = lowest risk, 10 = highest risk)
These disclosures support comparison before a subscription, but they do not guarantee understanding, suitability, future accuracy, or an investment outcome. An investor should review each value’s definition, period, risks, fees, and current record.
Critical: Parameters Cannot Be Modified After Creation
Think carefully before finalizing your fund setup. The following parameters are permanently locked once the fund is created:
Currency
Performance Fee
Management Fee (if applicable)
Leverage
MT4 or MT5 platform server
Maximum Drawdown
Stop-Loss Level
Fund name
What If You Need to Change Parameters?
If you realize you've entered incorrect parameters after fund creation, or if you need to adjust fees during fund operation:
Solution: Create a new fund with the correct parameters
You cannot modify existing fund parameters
If the fund already has investors, do not transfer or re-subscribe them automatically. Disclose the relevant differences and let each investor review the new fund’s information, risks, fees, and terms and make an independent decision through the current supported flow. Do not promise migration, redemption, or timing.
Keeping these creation-time fields fixed preserves a stable record for comparison. It does not ensure complete transparency or prevent changes in market values, product status, law, or displayed calculations. The current Client Portal record and applicable terms control, and expected and actual values must be read separately.