Regulations

General Risk Management Rules

1. Rules for Determining Drawdown Levels

Drawdown is the maximum permitted amount of loss, expressed either as a percentage of the balance or as an amount in RUB.

The available drawdown for a particular trading venue on a given day is calculated in RUB using the following formula:

Drawdown = MAX (30% of funds already earned by the Trader, 5% of the balance)

To improve the Trader experience, ADF Capital updates the permitted drawdown amount every day immediately after the end of the exchange clearing period.

At the beginning of each business day, at 06:00 Moscow time, Traders can view their permitted drawdown levels in their Personal Account or request this information from Customer Support.

A Trader may be granted individual drawdown terms. To request such terms, the Trader must contact Customer Support and provide all necessary documents and supporting materials demonstrating the need for individual conditions.

The available drawdown is automatically distributed among the trading accounts in the same proportion as the balance allocated from the Capital Account. The maximum permitted drawdown over the entire trading period may not exceed 15% of the balance.

If the maximum permitted drawdown is exceeded, the account will be blocked pending further review.

Traders are responsible for monitoring their current drawdown limits in their Personal Account. If there is a risk that a trading account may be liquidated, the Trader must contact Customer Support.

2. Example of Drawdown Calculation

A Trader trades on the Futures venue and has a balance of RUB 100,000, of which RUB 70,000 represents the Trader's accumulated earnings. The Trader can view the applicable drawdown limits in their Personal Account.

Available drawdown calculation: Drawdown = MAX(30% × 70,000, 5% × 100,000) = MAX(21,000, 5,000) = RUB 21,000.

The Trader's available drawdown is RUB 21,000.

3. Example of Drawdown Calculation with a Leg

The Trader has two open positions within the same trading venue:
● first position: +RUB 10,000;
● second position: −RUB 14,000₽;
● total financial result: −RUB 4,000;

● total financial result: −RUB 4,000₽.

As long as both positions remain open, the total financial result of −RUB 4,000 remains within the permitted drawdown limit.

If the Trader closes the profitable position (the "leg"), its result will no longer be included in the overall drawdown calculation. The loss on the remaining position will then amount to −RUB 14,000, exceeding the maximum permitted drawdown of −RUB 6,000 and resulting in the immediate closure of the open positions.

4. ADF Capital Risk Management System

ADF Capital's Risk Robot monitors open positions in real time and ensures compliance with the established drawdown limits.

When the critical drawdown level is reached, the Risk Robot may automatically close open positions.

How to reduce the risk of forced position closure:

  • ● independently monitor your current financial result;
  • ● monitor your current drawdown limit in your Personal Account;
  • ● use stop-loss (SL) orders;
  • ● set limits on potential losses for each position in advance.

For any questions regarding the operation of the Risk Robot, Traders may contact Customer Support.