Help CenterThe Max Margin Utilization Rule is designed to prevent excessive concentration of account exposure through unsustainable leverage usage.
This rule monitors how much of the account’s available margin is being utilized at any given time.
Excessive margin utilization significantly increases liquidation risk, reduces flexibility during volatility, and may indicate reckless or recovery-style trading behavior.
OneFunded reserves the right to review accounts demonstrating consistently elevated margin utilization even if no technical drawdown breach has occurred.
What Is Margin Utilization?
Margin utilization represents the percentage of account equity currently being used as margin for open positions.
High margin utilization means:
- Most available equity is tied to active exposure
- Remaining free margin becomes very limited
- Small market movements can create disproportionately large drawdowns
Risk Thresholds
OneFunded internally monitors elevated margin utilization levels, including:
- 20% margin utilization threshold per trade idea
- 50% margin utilization threshold total usage on account
Repeatedly exceeding these thresholds may trigger:
- Manual risk review
- Payout review
- Increased account monitoring
- Trading restrictions
- Mandatory exposure reduction
Examples of Elevated Risk Behavior
Examples include:
- Using near-maximum available leverage
- Maintaining minimal free margin during volatility
- Concentrating large exposure into one market event
- Aggressively averaging into losing positions
- Recovery-style execution with escalating margin usage
Important Clarification
Margin utilization is evaluated together with:
- Floating drawdown
- Correlated exposure
- Stop loss usage
- Recovery trading behavior
- Overall account sustainability
The purpose of this rule is not to restrict normal active trading, but to identify trading behavior that creates excessive downside concentration inconsistent with professional risk management standards.