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 used by open positions at any given time.
Excessive margin utilization significantly increases liquidation risk, reduces flexibility during volatile market conditions, and may indicate reckless, overleveraged, or recovery-style trading behaviour.
OneFunded reserves the right to review accounts that demonstrate consistently elevated margin utilization.
What Is Margin Utilization?
Margin utilization represents the percentage of your initial account balance currently being used as margin for open positions.
High margin utilization means:
- Most of your initial balance is tied up in active exposure
- Remaining free margin becomes very limited
- Small market movements can create disproportionately large drawdowns
- The account has reduced flexibility during volatility
Risk Threshold
OneFunded internally monitors elevated margin utilization using a 50% total margin utilization threshold on the account.
This means that traders should not repeatedly use more than 50% of their initial account balance as margin across all open positions.
Repeatedly exceeding this threshold may trigger:
- Manual risk review
- Payout review
- Increased account monitoring
- Trading restrictions
- Mandatory exposure reduction
Examples of Elevated Risk Behavior
Examples of elevated margin risk include:
- Using near-maximum available leverage
- Concentrating large exposure into one market event
- Aggressively averaging into losing positions
- Recovery-style execution with escalating margin usage
- Opening multiple positions that together consume an excessive portion of available margin
Soft and Hard Breach System
To ensure fair compliance with the rule and to avoid misunderstandings, OneFunded applies a Soft and Hard Breach system.
For all accounts, the first violations of the Max Margin Utilization Rule may be treated as warnings before stronger enforcement action is taken.
The breach structure is as follows:
- 1st breach on the account: Soft breach — warning only
- 2nd breach on the account: Soft breach — warning only
- 3rd breach on the account: Final warning
After repeated breaches, the account may be subject to further Risk & Compliance review and stronger enforcement action.
Please note that this structure is intended to give traders a fair opportunity to understand and correct their margin usage. However, serious, excessive, or repeated misuse of margin may result in account termination.
The purpose of this rule is not to restrict normal active trading, but to identify trading behaviour that creates excessive downside concentration inconsistent with professional risk management standards.
OneFunded reserves the right to review the full trading context when assessing any breach, including total margin usage, position sizing, account equity, correlated exposure, and whether the behaviour appears intentional or repeated.
The purpose of this rule is not to restrict normal active trading, but to identify trading behaviour that creates excessive downside concentration inconsistent with professional risk management standards.
OneFunded reserves the right to review the full trading context when assessing any breach, including total margin usage, position sizing, account equity, correlated exposure, and whether the behaviour appears intentional or repeated.
This rule is enforced to promote disciplined risk management and to help ensure traders maintain sustainable account exposure.