> For the complete documentation index, see [llms.txt](https://hashhedge.gitbook.io/hashhedge-user-guide/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hashhedge.gitbook.io/hashhedge-user-guide/rules/daily-loss-calculation.md).

# How the daily loss limit is calculated

Your **daily loss limit** is the most you can lose in a single trading day.

Breach it and the Challenge ends. Here's exactly how it's measured, with worked examples.

{% hint style="info" %}
**Daily Loss Protection** and a **Daily Loss Reset** change this: they refresh the daily limit once instead of failing the Challenge. See [Rules, stages and loss limits](/hashhedge-user-guide/rules/challenge-rules.md).
{% endhint %}

<figure><img src="/files/U0E7FFwceyLDh1Q4bzxr" alt=""><figcaption><p>How the daily loss limit works</p></figcaption></figure>

\*\*\*

## The formula

**Daily loss = current Equity − Balance at the start of the day**

Balance at the start of the day is your balance including all closed positions as of the start of the day.

**Equity = Balance + floating (unrealized) P\&L**

* **Balance**: your account value from **closed** positions only. It changes only when you close a position, when a trading fee is charged, or when a funding fee is applied. Open positions are **not** included in Balance.
* **Equity**: your **live** account value, including open positions. It updates in real time.

The daily loss limit updates every day at **00:00–00:10 UTC+4** on a Crypto + TradFi account, and at **08:00–08:10 UTC+4** on a US Stocks account. At that moment your start-of-day Balance is locked in for the day. See [Trading US Stocks](/hashhedge-user-guide/trading-terminal/stocks-terminal.md).

{% hint style="info" %}
Your dashboard always shows the exact equity level at which the Challenge would fail, so you can see how much room you have left at a glance. Please note: the statistics are not updated in real time, but refresh periodically. The time of the latest refresh is shown in the "Last Update" field in the dashboard panel.
{% endhint %}

## Your daily loss limit by Challenge

The limit is a **fixed 5% of your Challenge's starting balance**. It never changes, not even if your current balance is higher or lower than where you started.

| Challenge | Starting balance | Daily loss limit |
| --------- | ---------------- | ---------------- |
| Starter   | $5,000           | $250             |
| Boost     | $10,000          | $500             |
| Pro       | $25,000          | $1,250           |
| Elite     | $50,000          | $2,500           |
| Legend    | $100,000         | $5,000           |
| Titan     | $150,000         | $7,500           |
| APEX      | $200,000         | $10,000          |

APEX is offered occasionally, during promotions.

{% hint style="info" %}
**Common misconception:** the limit is **not** 5% of your *current* balance. On a Boost account it's always **$500**, even if your balance has grown to $10,700.
{% endhint %}

## Good to know

* **Fees count toward your daily loss** (they aren't shown in a position's P\&L). **Funding** is charged at a set time and moves your Balance suddenly, which immediately affects your daily loss.
* **Closing a losing position doesn't change your Equity**: the loss was already there as unrealized P\&L. Only the closing fee moves Equity.
* **Open positions carry into the next day.** At the daily update their floating P\&L is already part of your Equity, so a new day can start with part of the limit already used.
* **Tip:** closing a position before the daily update banks its result into your Balance for the new day; carrying it open keeps its P\&L in Equity instead.
* Breach the limit and the **Challenge fails automatically**.

## Examples

All examples use **Boost** ($10,000 starting balance, $500 limit). The logic is identical for every Challenge: only the starting balance and limit change (see the table above). Your **equity floor** = start-of-day balance − limit.

<details>

<summary>1. A normal day</summary>

Start-of-day balance $10,000, so the equity floor is $9,500.

| Event                    | Balance | Unrealized P\&L | Equity  | Daily loss         |
| ------------------------ | ------- | --------------- | ------- | ------------------ |
| Day start                | $10,000 | $0              | $10,000 | $0                 |
| Open a position (fee $5) | $9,995  | $0              | $9,995  | −$5                |
| Position falls to −$400  | $9,995  | −$400           | $9,595  | −$405              |
| Funding −$50             | $9,945  | −$400           | $9,545  | −$455              |
| Position falls −$45 more | $9,945  | −$445           | $9,500  | **−$500 → failed** |

</details>

<details>

<summary>2. Balance above the starting balance</summary>

Start-of-day balance $10,700, but the limit is still **$500** (not $535). Equity floor $10,200.

| Event                    | Balance | Unrealized P\&L | Equity  | Daily loss         |
| ------------------------ | ------- | --------------- | ------- | ------------------ |
| Day start                | $10,700 | $0              | $10,700 | $0                 |
| Open a position (fee $5) | $10,695 | $0              | $10,695 | −$5                |
| Position falls to −$400  | $10,695 | −$400           | $10,295 | −$405              |
| Funding −$50             | $10,645 | −$400           | $10,245 | −$455              |
| Position falls −$45 more | $10,645 | −$445           | $10,200 | **−$500 → failed** |

</details>

<details>

<summary>3. Two positions at once</summary>

The limit applies to your **whole account's Equity**, not to each position: open positions are netted. Start-of-day balance $10,000.

| Event                   | Balance | Unrealized P\&L | Equity  | Daily loss |
| ----------------------- | ------- | --------------- | ------- | ---------- |
| Day start               | $10,000 | $0              | $10,000 | $0         |
| Open A and B (fees −$8) | $9,992  | $0              | $9,992  | −$8        |
| A at −$400, B at +$200  | $9,992  | −$200           | $9,792  | −$208      |

One position is −$400 and another is +$200, so the **net** is −$200 and your daily loss is −$208 (with fees), well within the $500 limit.

</details>

<details>

<summary>4. A losing position carried into the next day</summary>

Yesterday a position is open at −$300 at the daily update. The new day's Balance is still $10,000 (open positions aren't in Balance), but Equity is $9,700, so the day **starts at −$300**, leaving only $200 of room.

| Event                        | Balance | Unrealized P\&L | Equity | Daily loss               |
| ---------------------------- | ------- | --------------- | ------ | ------------------------ |
| New day                      | $10,000 | −$300           | $9,700 | **−$300 (already used)** |
| Funding −$50                 | $9,950  | −$300           | $9,650 | −$350                    |
| Open a 2nd position (fee $3) | $9,947  | −$300           | $9,647 | −$353                    |
| 2nd position −$147           | $9,947  | −$447           | $9,500 | **−$500 → failed**       |

</details>

<details>

<summary>5. A winning position carried into the next day</summary>

A position carried at +$300 means the new day starts at Equity $10,300, a daily loss of **+$300** (you're in profit), so you begin with full room. The floor is still $9,500, though, so a hard reversal can still fail the account.

| Event                     | Balance | Unrealized P\&L | Equity  | Daily loss         |
| ------------------------- | ------- | --------------- | ------- | ------------------ |
| New day                   | $10,000 | +$300           | $10,300 | +$300              |
| Position falls back to $0 | $10,000 | $0              | $10,000 | $0                 |
| Position falls to −$300   | $10,000 | −$300           | $9,700  | −$300              |
| Funding −$50              | $9,950  | −$300           | $9,650  | −$350              |
| Position falls −$150 more | $9,950  | −$450           | $9,500  | **−$500 → failed** |

</details>

***

The same logic applies to every Challenge type and any balance, above or below where you started. To track it live, watch **Equity**, **Balance** and your daily loss on the dashboard.


---

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