Does City Traders Imperium's Maximum Total Loss include unrealized losses from open positions?

Yes, the maximum total loss includes both realized losses from closed trades and unrealized losses from open positions. The rule is based on your current account equity, not just your realized P&L, so floating losses count toward the 5% limit.

What happens if I breach the Maximum Total Loss?

You immediately fail the challenge or lose your funded account with no opportunity to recover. City Traders Imperium will terminate your account access and you'll need to purchase a new challenge to continue trading with the firm.

Does the Maximum Total Loss reset when I advance from Phase 1 to Phase 2?

No, the maximum total loss continues from your Phase 1 performance and doesn't reset when advancing to Phase 2. The 5% limit remains calculated from your original starting balance throughout both challenge phases and into the funded account.

Is the Maximum Total Loss calculated from account balance or account equity?

The maximum total loss is monitored against your current account equity, not your closed balance. This means open positions with unrealized losses will reduce your equity and count toward the 5% maximum loss limit from your initial account balance.

Does City Traders Imperium's Maximum Total Loss include unrealized losses from open positions?

Yes, the maximum total loss includes both realized losses from closed trades and unrealized losses from open positions. The rule is based on your current account equity, not just your realized P&L, so floating losses count toward the 5% limit.

What happens if I breach the Maximum Total Loss?

You immediately fail the challenge or lose your funded account with no opportunity to recover. City Traders Imperium will terminate your account access and you'll need to purchase a new challenge to continue trading with the firm.

Does the Maximum Total Loss reset when I advance from Phase 1 to Phase 2?

No, the maximum total loss continues from your Phase 1 performance and doesn't reset when advancing to Phase 2. The 5% limit remains calculated from your original starting balance throughout both challenge phases and into the funded account.

Is the Maximum Total Loss calculated from account balance or account equity?

The maximum total loss is monitored against your current account equity, not your closed balance. This means open positions with unrealized losses will reduce your equity and count toward the 5% maximum loss limit from your initial account balance.

Updated 2026-03-08

City Traders Imperium Maximum Total Loss Rule Explained

City Traders Imperium

Quick Answer

City Traders Imperium's Maximum Total Loss is 5% from the initial account balance across all phases.

The rule is calculated from your starting account balance and includes both realized and unrealized losses. If your account equity drops 5% below the initial balance at any point, you immediately fail the challenge or lose your funded account.

Key Rule Details

Limit

Dollar Value ($100,000)

$5,000

Basis

initial account balance

Resets

Never (static)

Breach

Account terminated

Calculation Example

Account Size: $100,000 — Maximum Total Loss: $5,000

Account Size	$100,000
Maximum Total Loss Limit	$5,000
Scenario: Closed P&L	$-1,400
Scenario: Floating P&L	$-2,600
Total Exposure	$-4,000
Remaining Buffer	$1,000

Limit used:80%

Common Mistakes

Ignoring Open Position Risk

Traders focus only on closed trades while holding positions with large floating losses. On a $10,000 account, if you're down $300 in realized losses and hold positions showing -$250 unrealized, you're at $9,450 equity - dangerously close to the $9,500 breach level.

Calculating from Current Balance

Many traders mistakenly calculate the 5% from their current account balance instead of the original starting balance. On a $25,000 account that's grown to $26,500, the maximum loss is still $1,250 from the original $25,000, not from the new $26,500 balance.

Weekend Gap Exposure

Traders leave positions open over weekends without considering gap risk against the maximum loss. A $50,000 account at $47,800 equity on Friday is only $300 away from the $47,500 breach level - a small gap down on Monday could trigger an immediate failure.

Revenge Trading After Losses

After taking significant losses, traders increase position sizes trying to recover quickly. This amplifies risk when already close to the maximum loss threshold, turning a manageable $400 loss on a $10,000 account into a rule-breaking $600+ loss with one bad revenge trade.

Protection Strategies

Set Personal 3% Loss Limit

Create your own maximum loss threshold at 3% instead of the firm's 5% limit. This gives you a $500 buffer on a $25,000 account, providing room for unexpected market moves or slippage while keeping you safely away from the actual $1,250 breach level.

Use 1% Risk Per Trade

Limit each trade to risk no more than 1% of your initial balance. On a $10,000 account, this means $100 maximum risk per trade, allowing for 3-5 losing trades before reaching your personal safety threshold and 5 consecutive losses before rule breach.

Set Daily Equity Alerts

Configure your trading platform to alert you when account equity drops to 3% loss from initial balance. For a $50,000 account, set the alert at $48,500 equity, giving you $1,000 cushion before the actual $47,500 breach level while positions are still manageable.

Close Positions Before High Impact News

Exit all trades 30 minutes before major economic releases when your account is within 2% of the maximum loss threshold. This prevents gap moves or volatility spikes from pushing you over the limit when you're already at risk levels.

Related Rules

Profit Target (Phase 1)

Payout Split & Schedule

City Traders Imperium Comparisons

/Compare/Fundednext vs City Traders Imperium /Compare/Ftmo vs City Traders Imperium /Compare/Fundingpips vs City Traders Imperium /Compare/The Funded Trader vs City Traders Imperium

Frequently Asked Questions

Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on City Traders Imperium's official website before purchasing a challenge. Updated 2026-03-08.