# Risk manager

This helps prevent serious losses, preserve your balance, and take a pause before making your next informed decision.

{% hint style="info" %}
Risk Manager is not a substitute for stop-loss orders. Please review the mechanics of how it works to avoid unexpected results.
{% endhint %}

<figure><img src="/files/5ZaoWWpC0XVk1BCNncyZ" alt=""><figcaption></figcaption></figure>

### How does the risk manager work?

{% hint style="info" %}
Currently, the Risk Manager works only for USD(M) Futures Binance.

Coming soon: Bybit.
{% endhint %}

Once activated, the risk manager parameters can only be changed or disabled after the start of the next UTC day.

If the drawdown reaches the set limit, the following actions occur:

* All positions are closed
* All orders are canceled (including Binance Spot)
* Trading via API is blocked
* Creating or editing API keys (Binance) is disabled
* Trading access is automatically restored the next day at 00:00 UTC

> **Position rollover to the next day**
>
> The baseline balance for drawdown tracking is fixed at 00:00 UTC, excluding any unrealized PnL. All open positions are carried over to the next day.\
> \
> \&#xNAN;*Example:*\
> Drawdown: 20 USDT (fixed from the balance at the start of the day)\
> Balance at 00:00 UTC: 100 USDT\
> \&#xNAN;*uPnL (unrealized profit/loss)* on open positions: –10 USDT\
> The drawdown baseline will be calculated as 100 USDT.\
> When the *uPnL* on open positions reaches –20 USDT, the risk manager will trigger.

### Available drawdown types

{% hint style="info" %}
The Risk Manager considers the total PnL across all positions for the current day. The drawdown settings can only be edited once per day.
{% endhint %}

#### Fixed drawdown from the day’s starting balance (UTC)

Allows you to set the maximum acceptable drawdown from the balance recorded at the start of the current UTC day.

* Supports values in **USDT** or **percentages**
* A classic mode where the drawdown is calculated relative to the starting balance at the beginning of the day

{% hint style="warning" %}
Non-trading operations (such as deposits or withdrawals) on the futures account affect the calculation. After such an operation, the “Balance at the start of the day” automatically updates to include the transferred amount.
{% endhint %}

Trigger condition:

{% code overflow="wrap" %}

```
Balance at the triggering < Drawdown baseline balance - Drawdown value
```

{% endcode %}

| **Term**                  | **Description**                                                   |
| ------------------------- | ----------------------------------------------------------------- |
| Drawdown baseline balance | Binance Futures account balance recorded at 00:00 UTC ± transfers |
| Balance at the triggering | Balance at the start of the day + realized PnL + unrealized PnL   |
| Drawdown value            | The set drawdown amount                                           |

> **Example calculation**\
> \
> Balance at the start of the day: 10,000 USDT\
> Drawdown value: 200 USDT\
> Withdrawal: –2,000 USDT\
> Deposit: +6,000 USDT → Drawdown baseline balance: 10,000 – 2,000 + 6,000 = 14,000 USDT\
> Realized PnL: +50 USDT\
> Unrealized PnL: –250 USDT → Balance at the triggering: 14,000 + 50 – 250 = 13,800 USDT\
> \
> When the balance reaches 13,800 USDT, the Risk Manager will activate: all positions will be closed, orders canceled, API trading and key creation will be blocked, and trading will remain suspended for 24 hours.

#### Fixed drawdown from the day’s maximum balance

Allows you to set the drawdown relative to the maximum balance reached during the day.

* Supports values in **USDT** or **percentages**
* Used to protect daily profit — it locks in profits when the balance drops below a defined threshold after reaching a daily high

In this mode, the drawdown is calculated from the day’s maximum balance.

Maximum profit is determined as the highest positive accumulated profit value since the start of the day.

The following operation types are included in the calculation:

* REALIZED\_PNL (realized profit/loss)
* COMMISSION (trading fees)
* FUNDING\_FEE (funding payments)
* INSURANCE\_CLEAR (liquidation fees)

{% hint style="info" %}
**Example of how the maximum profit calculation works**

Drawdown baseline balance (at the start of the UTC day): 1,000 USDT

1. First trade opened:
   * Commission: –1 USDT
   * Base balance: 1,000 USDT
   * Max profit: 0 USDT
   * **Drawdown baseline: 1,000 USDT**
2. Trade closed with profit:
   * Commission: –1 USDT
   * Realized profit (RPnL): +10 USDT
   * Base balance: 1,000 USDT
   * Max profit: +8 USDT (RPnL – commission)
   * **Drawdown baseline: 1,008 USDT**
3. New trade opened:
   * Commission: –2 USDT
   * Base balance: 1,000 USDT
   * Max profit: 8 USDT
   * **Drawdown baseline: 1,008 USDT**
4. Funding received:
   * Funding: +5 USDT
   * Base balance: 1,000 USDT
   * Max profit: +11 USDT
   * **Drawdown baseline: 1,011 USDT**
5. Withdrawal made:
   * Withdrawal: –500 USDT
   * Base balance: 500 USDT (1,000 – withdrawal)
   * Max profit: +11 USDT
   * **Drawdown baseline: 511 USDT**
     {% endhint %}

Trigger condition:

```
Balance at the triggering < Maximum balance for the day - Drawdown value
```

| **Term**                    | **Description**                                                     |
| --------------------------- | ------------------------------------------------------------------- |
| Maximum balance for the day | Balance at the start of the day + positive realized PnL ± transfers |
| Balance at the triggering   | Balance at the start of the day + realized PnL + unrealized PnL     |
| Drawdown value              | The set drawdown amount                                             |

> **Example calculation**\
> \
> Balance at the start of the day: 10,000 USDT\
> Drawdown value: 200 USDT\
> Withdrawal: –2,000 USDT\
> Deposit: +1,000 USDT → Drawdown baseline balance: 10,000 – 2,000 + 1,000 = 9,000 USDT\
> Realized PnL: +500 USDT → Maximum balance for the day: 9,000 + 500 = 9,500 USDT\
> Unrealized PnL: –200 USDT → Balance at the triggering: 9,500 – 200 = 9,300 USDT\
> \
> When the balance reaches 9,300 USDT, the Risk Manager will activate: all positions will be closed, orders canceled, API trading and key creation will be blocked, and trading will remain suspended for 24 hours.

**Optional setting: “Trigger only by realized PnL”**

{% hint style="success" %}
Applicable to all drawdown types.
{% endhint %}

When this option is enabled, the risk manager will only trigger once all positions are closed and the loss is realized. In this mode, **unrealized PnL** is **not included** in the drawdown calculation.

### Trigger threshold

If the risk manager is active, the Orders and Positions section displays the value “Before protection triggers”.

It represents the difference between your current balance and the trigger threshold, helping you understand how much remains before the drawdown limit is reached.

**Calculation formulas depending on drawdown type**

Drawdown from the day’s starting balance:

* In USDT → balance at the start of the day (± transfers) – drawdown
* In % → balance at the start of the day (± transfers) – drawdown in percent

Drawdown from day’s maximum balance

* In USDT → balance at the start of the day (± transfers) + max profit of the day – drawdown in USDT
* In % → balance at the start of the day (± transfers) + max profit of the day – drawdown in percent

If the user has already reached a drawdown, this value may equal 0 or become negative (usually when *Trigger only by realized PnL* mode is active).

### Trading pause

Users who have enabled the risk manager can voluntarily pause trading for a selected period.

{% hint style="info" %}
Available pause durations:

* Until the end of the day
* Hours: 3, 6, 12
* Days: 1, 3, 5
  {% endhint %}

#### How it works

When *Trading pause* is activated:

1. All open orders are automatically canceled
2. All positions are closed
3. New trading operations are blocked
4. During the *Trading pause*, you cannot disable the risk manager or modify the pause duration
5. Trading automatically resumes once the selected period ends — the system tracks the pause expiration and re-enables trading automatically

### Withdrawal blocking when the risk manager triggers

When this feature is enabled, withdrawals are blocked both when a Risk event is triggered and during an active Trading pause.

{% hint style="warning" %}
After activation, the Withdrawal blocking option cannot be disabled or edited.
{% endhint %}

### Risk event analysis

When a risk manager event is triggered, the system automatically sends a command to cancel all open orders and close all active positions using a market order. The closing price depends on current market conditions at the time of execution. During periods of high volatility, slippage may occur — the actual loss can slightly differ from the configured drawdown value.

After the trigger, a notification appears at the top of your Account dashboard. To view more details, go to the [Events section.](https://account.tiger.com/risk-manager)<br>

<figure><img src="/files/ffB6qiOJnAjFJLYLQUng" alt=""><figcaption></figcaption></figure>

Clicking on a specific event opens detailed information, including the Trigger date, Trigger threshold, Balance at the triggering, and Unrealized PnL, along with the drawdown parameters and the trade that caused the trigger.

Example of how a risk event is displayed

<figure><img src="/files/ckGD0hM0T8oz3zDyCKqd" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
If you have questions about a Risk Manager trigger, contact our support team at <broker.support@tiger.com>\
Please include a description of the situation and a screenshot of the event details.
{% endhint %}


---

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