Skip to main content

Locked Buffer Drawdown: How It Works

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

Support avatar
Written by Support
Updated yesterday

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.

Did this answer your question?