Why Risk Lock-In Exists
Once you reach a Live Funded Account, you are trading REAL firm-backed capital provided by Topstep. Because of that, the Risk Team actively monitors Live accounts and may step in to help protect strong performance, especially on large winning days.
Risk Lock-In is designed to protect profits during exceptional intraday performance while still allowing traders room to continue trading responsibly.
What Is a Risk Lock-In?
A Risk Lock-In occurs when the Risk Team sets a minimum profit level for the trading day after a trader has achieved significant gains. This minimum level helps protect profits and prevent a strong day from turning into a loss due to overtrading.
Risk Lock-In is not meant to stop you from trading or limit your upside. It exists to protect both firm capital and the progress you’ve already made on the day.
How Risk Lock-In Works
When a trader is significantly profitable relative to their starting Daily Loss Limit (DLL) or net equity, the Risk Team may establish a lock-in level.
That lock-in level allows a controlled drawdown from your current profit, typically set as a multiple of your starting Daily Loss Limit for the day (such as 1x, 1.5x, or 2x).
The specific multiplier applied depends on several factors, including:
Net P&L
Starting Daily Loss Limit
Account balance
Recent trading behavior
As profits increase throughout the day, the Risk Team may adjust lock-in levels accordingly.
When a lock-in level is set, you will be notified immediately via email or phone. Traders are expected to remain available for communication while actively trading, as outlined in the Live Funded Account Trading Rules.
If your net P&L falls below the lock-in level, your account will be liquidated and locked for the remainder of the trading day. Trading may resume at 5:00 PM Central Time on the next trading day.
Example Scenarios
Your $50k Live Funded Account has $15,000. Your starting Daily Loss Limit is $2,000. → You are trading well and are up $10,000 on the day. The Risk Team reaches out via email/phone and sets a lock-in level of $7,000. In other words, you now have $3,000 (1.5x your original Daily Loss Limit) in drawdown available. This means you can continue trading until your net P&L reaches $7,000. Below $7,000, your account will be liquidated, locked, and all orders will be canceled. You will be able to resume trading at 5 PM Central Time on the next trading day.
Your $100k Live Funded Account has $75,000. Your starting Daily Loss Limit is $3,000. → You are trading well and are up $20,000 on the day. The Risk Team reaches out via email/phone and sets a lock-in level of $14,000. In other words, you now have $6,000 (2x) your original Daily Loss Limit in drawdown available. This means you can continue trading until your net P&L reaches $7,000. Below $7,000, your account will be liquidated, locked, and all orders will be canceled. You will be able to resume trading at 5 PM Central Time on the next trading day.
Your $150K Live Funded Account has $150,000. Your starting Daily Loss Limit is $4,500. → You are trading well and up $40,000 on the day. The Risk Team reaches out via email/phone and sets a lock-in level of $31,000. In other words, you now have $9,000 (2x your original Daily Loss Limit) in drawdown available. This means you can continue trading until your net P&L reaches $31,000. Below $31,000, your account will be liquidated, locked, and all orders will be canceled. You will be able to resume trading at 5 PM Central Time on the next trading day.
You just received your $150K Live Funded Account with $15,000. Your Daily Loss Limit is $4,500 → You are trading well and up $9,000 on the day. The Risk Team reaches out via email/phone and sets a lock-in level of $4,500. In other words, you now have $4,500 (1x your original Daily Loss Limit) in drawdown available. This means you can continue trading until your net P&L reaches $4,500. Below $4,500, your account will be liquidated, locked, and all orders will be canceled. You will be able to resume trading 5 PM Central Time on the next trading day.
Why Risk Lock-In Exists
When a trader is having an exceptional day and is significantly in profit, the Risk team shifts from "defensive" to "protective," and as you’re able to secure winning days and show net profitability in your account over time, your account will become eligible for Topstep’s Live Account Performance Bonuses and Dynamic Risk Expansions.