Vest Capital Rules Explained: Drawdown, Daily Loss & Account Choices
Updated · 6 min read
Vest Capital uses a fixed (static) maximum-drawdown floor on every account: 6% on evaluation accounts and 2–4% on Instant Accounts. Evaluation accounts may also have a 3% or 4% daily-loss limit that resets at 20:00 ET; Instant Accounts never have a daily-loss limit. Falling *below* either applicable equity floor closes the account immediately and permanently.
- The maximum-drawdown floor is static: profits never make it rise, and it is checked against live equity including unrealized PnL.
- Evaluation accounts have a fixed 6% max drawdown; their floor is $4,700 on $5K, $9,400 on $10K, and $23,500 on $25K.
- At 20:00 ET, a daily-loss account captures reset balance plus reserved collateral, excluding unrealized PnL, then sets a new 3% or 4% daily floor.
- Instant is live on purchase, has no profit target or daily-loss rule, and its maximum drawdown exactly equals its one-time payment.
- No daily-loss option does not remove max drawdown. It removes only the moving daily floor.
The rule that matters most: equity must stay above the floor
Vest checks Account Value / equity, not just closed-trade balance. Open PnL therefore counts. A price wick can breach a floor even when the position later recovers. A breach occurs when equity falls below the relevant floor; touching it exactly is not described as a breach. Vest says there is no warning, grace period or account recovery: the account closes permanently and a replacement account must be purchased.
Do not treat the floor as a stop-loss target
Leave room for spread, funding, fees and fast price movement. The order ticket's estimated Fail Price is useful, but it is only an estimate; reduce size before the calculated fail price becomes relevant.
Static maximum drawdown: fixed from day one
A static drawdown is a permanent dollar floor calculated from starting capital. Unlike a trailing drawdown, it does not ratchet upward after profitable trades. Vest's evaluation maximum drawdown is always 6%, regardless of the profit target, daily-loss option or profit split selected at checkout.
| Evaluation tier | Starting capital | Maximum drawdown | Permanent equity floor |
|---|---|---|---|
| Silver | $5,000 | $300 (6%) | $4,700 |
| Gold | $10,000 | $600 (6%) | $9,400 |
| Platinum | $25,000 | $1,500 (6%) | $23,500 |
Why static is friendlier after a win: $10,000 evaluation
- Start: the max-drawdown floor is $9,400.
- You make $1,000: equity reaches $11,000, but the floor stays $9,400.
- You later give back $900: equity is $10,100 and the account is still above its $9,400 permanent floor.
- A trailing 6% rule would commonly have moved its floor higher as the account made new highs; Vest's evaluation max drawdown does not.
The 20:00 ET daily-loss reset, step by step
The daily-loss limit (DLL) is optional only on the evaluation path: choose 3%, 4%, or no DLL at purchase. If selected, it carries from the Evaluation Phase into the Live Funded Account. Vest resets it at 20:00 ET (America/New_York). The reset balance includes realized account balance and reserved collateral, but excludes unrealized PnL. Vest then checks current equity, including unrealized PnL, against the daily floor for the rest of that trading day.
Daily floor = reset balance × (1 − DLL rate) + net non-trading transfers since reset
A withdrawal lowers the floor dollar-for-dollar; a non-trading credit raises it dollar-for-dollar. Trading PnL between resets does not change the daily floor.
$25,000 evaluation with the 4% daily-loss option
- At 20:00 ET, reset balance (including collateral, excluding open PnL) is $25,000.
- Daily floor = $25,000 × 96% = $24,000. The separate max-drawdown floor remains $23,500.
- An open trade later shows +$2,000 unrealized PnL. Equity is $27,000, but the daily floor remains $24,000.
- A $500 withdrawal after reset lowers the DLL floor to $23,500. A $500 non-trading credit would raise it to $24,500 instead.
- If equity falls below the higher active floor at any point, the account closes permanently.
The reset uses Eastern Time
20:00 ET follows America/New_York, so its UTC equivalent changes with US daylight saving time. Avoid managing the rule from a fixed UTC alarm without checking the current offset.
Evaluation vs Instant: rules and trade-offs
| With Evaluation | Instant Account | |
|---|---|---|
| Path to Live | Pass the evaluation first | Live when payment clears |
| Profit target | 1-Step: 10% or 20%; 2-Step: 10%, then 5% | None |
| Maximum drawdown | 6% static | 2% on $500; 4% on $5K/$10K/$25K; static |
| Daily-loss limit | 3%, 4%, or none, selected at purchase | Never |
| Profit split | 80% or 90%, selected at purchase | 95% flat |
| Account sizes | $5K, $10K or $25K | $500, $5K, $10K or $25K |
| Configuration | 1-Step configurable; 2-Step fixed | No configuration |
The immediate trade-off is not simply 'evaluation is safer.' Evaluation gives a much larger 6% max-loss allowance but asks you to reach a target. Instant skips the target and daily rule, but its loss allowance is only the purchase payment. On an Instant $5,000 account, for example, only $200 separates the starting balance from permanent closure.
How to choose an evaluation configuration
A 1-Step evaluation has four independently selected choices: tier, 10% or 20% profit target, 3%, 4% or no daily-loss limit, and an 80% or 90% profit split. The highest-flexibility setup costs more; a 20% target and a lower split reduce the one-time purchase price. A 2-Step account is a separate fixed configuration: two profit stages (10%, then 5%), 3% daily loss, 80% split, and 6% static max drawdown.
| If your priority is… | Configuration to consider | Important trade-off |
|---|---|---|
| Lowest upfront evaluation cost | 2-Step or 1-Step with a 20% target | More profit is required before going Live |
| Fewer intraday risk constraints | 1-Step with no daily-loss limit | You still have the static 6% max drawdown; this option costs more |
| More daily breathing room | 1-Step with 4% rather than 3% DLL | Costs more than the tighter 3% option |
| Higher share of eventual claims | 90/10 split | Higher purchase price than 80/20 |
| No evaluation target | Instant | Very tight 2–4% max-drawdown buffer |
Match the rule to your actual holding style
A trader who holds positions across 20:00 ET should understand the daily reset precisely. A trader who regularly experiences large intraday swings may value the static 6% evaluation floor more than avoiding a target. Neither choice makes oversized leverage safe.
Three breach examples
1. Evaluation max drawdown breach
- A $5,000 Silver evaluation has a static floor of $4,700.
- An open position moves against you and Account Value prints $4,699.
- That is below the $4,700 maximum-drawdown floor: permanent closure, even if price immediately rebounds.
2. Daily-loss breach before max drawdown
- A $10,000 evaluation resets at $10,000 with a 3% DLL, creating a $9,700 daily floor.
- Its static max-drawdown floor is $9,400.
- Intraday equity reaches $9,650. It is still above max drawdown, but below that day's $9,700 daily floor.
- The DLL breach closes the account. The lower permanent max-drawdown floor does not save it.
3. Instant-account breach
- An Instant $500 account has a $10 payment and a $490 static floor.
- There is no daily-loss limit and no profit target.
- A $10+ equity loss that takes Account Value below $490 permanently closes the account. The small entry price is also the entire drawdown buffer.
Other rules worth knowing before checkout
- Vest states there are no time limits for completing the evaluation or trading a Live Funded Account, provided the risk rules are followed.
- A maximum of 10 Live Funded Accounts and 100 Evaluation Phase accounts is allowed per user across both paths.
- XRP and HYPE are unavailable on Funded Accounts; API trading is not available on Funded Accounts.
- Profit claims are available from Live Funded Accounts as often as desired; the stated processing time is 24 hours. A claim is distinct from withdrawing USDC from the Primary Account.
- Vest's terms describe program balances and results as notional/simulated, while parts of its docs use 'real capital' language. Treat the legal terms as the controlling description and read them before purchase.
Frequently asked questions
Does Vest Capital have a trailing drawdown?
No. Vest describes maximum drawdown as a fixed floor set from starting capital that never moves. On evaluation accounts it is 6%; on Instant Accounts it is 2% for $500 and 4% for the larger sizes.
When does Vest Capital's daily loss limit reset?
It resets at 20:00 ET (America/New_York). The reset balance includes reserved collateral but excludes unrealized PnL, and Vest checks live equity including unrealized PnL against the resulting floor.
Do Instant Accounts have a daily loss limit?
No. Instant Accounts have only their fixed maximum-drawdown floor. Evaluation accounts can be purchased with a 3% DLL, 4% DLL, or no DLL.
What happens if I hit the Vest Capital drawdown limit?
If account equity falls below the applicable maximum-drawdown or daily-loss floor, Vest says the account closes immediately and permanently, with no warning or grace period.
Does selecting no daily loss limit remove all Vest Capital loss limits?
No. It removes the daily-loss limit only. Evaluation accounts still have the permanent 6% static maximum-drawdown floor.
Sources
- Vest Capital docs — Loss Limits
- Vest Capital docs — Overview
- Vest Capital docs — Account Tiers
- Vest Capital docs — Claiming Profit
- Vest Capital terms
Educational content, not financial advice. Perps and prop evaluations are high-risk; firm rules change, so check each firm's current terms.
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