Drawdown Policy

All accounts are subject to a maximum drawdown limit, denominated in dollars. This limit is often called your loss limit — the equity value at which your evaluation will fail, or your funded account will be breached.

The maximum drawdown is 3% of your account size. The loss limit starts 3% below your starting balance and rises as your account's equity reaches new peaks. For example, on a $1,000 account, the loss limit starts at $970. It never decreases — once it rises, it stays at that level or higher. The loss limit also applies once you are funded, but your equity and drawdown reset to their initial values after passing the evaluation.

The methodology used to update the loss limit — either intraday trailing or end-of-day (EOD) trailing — depends on the account type you purchased. It cannot be changed after purchase.

Both methodologies determine when your loss limit rises. Neither changes when it can be breached: on every account type, your equity is monitored continuously, and touching the loss limit at any moment closes the account.

Peaks are recorded from your live equity, not from the chart on your dashboard. For performance reasons that chart does not plot every point, so a short spike can raise your peak equity — and your loss limit — without being visible on it. See How to Interpret the Dashboards.

Under intraday trailing, your loss limit updates in real time. Any time your account's equity reaches a new peak, your loss limit increases by that same amount.

Example: You start with $1,000 (loss limit: $970). Your equity rises to $1,050 — your loss limit immediately increases to $1,020. If you then lose $80, your equity falls to $970, which touches your loss limit and fails the evaluation — even though you were up for the day overall.

Under EOD trailing, your loss limit is reassessed once per day at 5:00 AM ET (adjusted for daylight saving time). At that time, your current equity is compared to your peak equity from any previous day. If your account has reached a new high relative to previous days, your peak — and your loss limit — increase to match. If it hasn't, the loss limit is unchanged. Because this comparison happens once a day, the loss limit can rise at most once per day. Intraday equity swings between these checks do not raise your loss limit, but the limit itself is live at all times, and you can fail at any point by breaching it.

Example: You start with $1,000 (loss limit: $970). During the day, your equity rises to $1,050 and then falls to $1,000, all before the next 5 AM ET reset. Your loss limit stays at $970 for that entire day, so you do not fail — because your equity never touched $970 at any point. Had it fallen to $970 mid-day, the account would have closed immediately, regardless of where it stood at the next daily check. Your loss limit would only rise if your equity at 5 AM ET exceeds your previous peak.

Reaching your loss limit does not restrict your buying power — you can trade with your full account balance at any time. You only fail the evaluation, or breach a funded account, if your account equity — the value of your current positions plus your remaining buying power — drops to or below your loss limit.

This includes unrealized losses. If the value of your open positions pushes your equity below the loss limit at any point, you will fail even if those positions later recover or resolve in your favor. The breach is triggered by the equity level being reached, not by realizing the loss.

This is the opposite of how the profit goal is measured. Passing is assessed on realized profit and loss, while the loss limit is assessed on equity including unrealized profit and loss. See Profit Goals.

Positions in low-liquidity markets carry particular risk here, since prices can move sharply as a market nears resolution.

Faulty pricing is not held against you. Omen sources both pricing and resolution from Polymarket, which can report inaccurate position values after a market closes but before it officially resolves. Safeguards are in place so that bad data in this window cannot breach your loss limit, even though you may see inaccurate position values on the dashboard. If you think your account was affected, check the official market on Polymarket, then ask for a human review in a support chat. See Why My Positions, Odds, or Balances Look Wrong.

Breaching the drawdown limit at any point results in immediate account closure, with no refund issued. Open positions are closed automatically. This does not affect other evaluations or funded accounts within your Omen account, or your ability to start new evaluations.

The same drawdown rules that apply during your evaluation — including intraday or EOD trailing, based on your account type — continue to apply once you're funded.

If you pass your evaluation, your funded account starts at the original value of your evaluation account (for example, a $1,000 evaluation results in a $1,000 funded account). Profits earned during the evaluation do not carry over to the funded stage.