> For the complete documentation index, see [llms.txt](https://docs.propfunding.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.propfunding.com/disallowed-strategies/profit-surge-cap.md).

# Profit Surge Cap

To promote consistent and responsible trading during evaluations, a Daily Profit Cap has been implemented:

* Up to 40% of the total profit target for the 2 Step Plan (8% and 4% targets)
* Up to 30% of the total profit target for the 1 Step Plan (10% target)

***

#### 📌 Rule

A trader may not exceed the percentages below of their overall profit target in a single 24 hour period.

**Two Step Plan**

* **Phase 1:** Max daily profit = **3.2%** (40% of 8%)
* **Phase 2:** Max daily profit = **1.6%** (40% of 4%)

**One Step Plan**

* **One Step:** Max daily profit = **3%** (30% of 10%)

This rule helps ensure that traders demonstrate sustainable trading practices instead of relying on one high risk day followed by minimal or no trading activity.

> ❗ If a trader's account balance is below the starting amount, the profit cap rule will only apply once they return to breakeven or above.

***

#### ✅ Examples – $100K Accounts

**Two Step Plan**

**Phase 1**

* Profit Target: **$8,000**
* Max Daily Profit Allowed: **$3,200** (40% of $8,000)

**Phase 2**

* Profit Target: **$4,000**
* Max Daily Profit Allowed: **$1,600** (40% of $4,000)

**One Step Plan**

* Profit Target: **$10,000**
* Max Daily Profit Allowed: **$3,000** (30% of $10,000)<br>

🚦 Enforcement Logic

| Offense | Outcome                                  |
| ------- | ---------------------------------------- |
| 1st     | Account is reset to the starting balance |
| 2nd     | Evaluation is violated and terminated    |

Our risk system monitors this automatically and will take appropriate action without manual review.<br>

**🔍 Why This Rule?**

This rule targets strategies where a trader hits the majority of the profit target early using aggressive tactics, then trades 0.01 lot sizes just to fulfill minimum day requirements.

We want to fund skilled and consistent traders, not gamblers.

#### 🛠️ Applies To

| Phase  | Applies? |
| ------ | -------- |
| One    | ✅ Yes    |
| Two    | ✅ Yes    |
| Funded | ❌ No     |


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