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Locked Buffer Drawdown for SIM Instant Funded account: How It Works

After your first reward, your account transitions from a static drawdown model to the Locked Buffer Drawdown.

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Written by Support
Updated over a week ago

At PIP Traders Funding LLC, once you’ve proven profitability and earned your first reward, your account transitions from a static drawdown model to the Locked Buffer Drawdown.

This second stage is designed to protect your progress while continuing to encourage smart risk management.


✅ What is the Locked Buffer Drawdown?

The Locked Buffer is a portion of your profits that is secured as a fixed safety margin after your first reward is approved.

  • You must generate at least 5% of your initial balance to request your first reward

  • You will be paid up to 3% of the initial balance as a reward

  • The remaining profit (above 3%) becomes your Locked Buffer

Once the buffer is locked in, your drawdown threshold shifts:
➡️ You must not allow your account to drop back to your original starting balance.


📊 Example

Let’s say your starting balance is $100,000.
You generate a 6% profit, reaching $106,000.

  • You request your first reward (eligible because you made more than 5%)

  • You are paid $3,000 (3% of initial balance)

  • The remaining $3,000 is locked as your buffer

From that point forward, your account must not fall below $100,000.
If it does, the account is breached and will be terminated.


🧠 Why do we use the Locked Buffer model?

Because it encourages:

  • Profit protection — you’ve earned it, now safeguard it

  • Responsible trading after payout

  • A transition from growth-focused trading to risk-focused trading

It simulates the type of capital management expected from traders who have received capital allocations in professional environments.


📌 When does the Locked Buffer start?

  • Immediately after your first reward is approved

  • The buffer is automatically calculated and locked by the system

  • It remains active throughout the life of the account (unless another model applies in future)


❗What happens if you break the Locked Buffer?

If your account drops back to the original starting balance after the buffer has been locked:

  • The account is considered to have reached its maximum drawdown

  • It will be terminated

  • You will no longer qualify for additional rewards

There are no resets or re-entries under this model.


🔍 How to manage your buffer

  • After your first reward, shift focus to capital preservation

  • Use reduced risk per trade and avoid unnecessary exposure

  • Don’t view the buffer as extra room to risk — it’s a limit, not a cushion

  • Monitor your live equity, not just your closed balance


📍 Bottom Line

The Locked Buffer Drawdown is a powerful tool to help traders transition from reward-earning to account-protecting. By locking in part of your success, we create structure that mirrors professional capital protection — and reward the traders who treat it seriously.

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