🛡️Risk manager
Risk manager (RM) is a tool for automatic protection and control of your funds. It monitors your drawdown level in real time and, once the set limit is reached, it temporarily halts trading.
This helps prevent serious losses, preserve your balance, and take a pause before making your next informed decision.
How does the risk manager work?
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. Example: Drawdown: 20 USDT (fixed from the balance at the start of the day) Balance at 00:00 UTC: 100 USDT 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
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
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.
Trigger condition:
Balance at the triggering < Drawdown baseline balance - Drawdown valueTerm
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)
Trigger condition:
Balance at the triggering < Maximum balance for the day - Drawdown valueTerm
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”
Applicable to all drawdown types.
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.
How it works
When Trading pause is activated:
All open orders are automatically canceled
All positions are closed
New trading operations are blocked
During the Trading pause, you cannot disable the risk manager or modify the pause duration
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.
After activation, the Withdrawal blocking option cannot be disabled or edited.
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.
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
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