What is a payout buffer? How much profit you can withdraw, and the balance floor

What is a payout buffer at a prop firm?

A futures prop firm's funded account (called Funded, Performance Account, and other names depending on the firm) has a loss floor. If the balance touches this line, the account ends. A payout lowers your balance, so depending on how you withdraw, the balance could drop to just above the floor, and the next small loss would cost you the account.

So many firms ask you to build your balance above a certain level before you request a payout. The firms' official help pages describe this level, or the gap between it and the floor, as a Buffer, Safety Net, required balance, and so on. This guide calls them all a buffer.

2 things the buffer decides

• How much profit you can withdraw: at many firms, you can withdraw only the amount above the buffer. Lucid Trading's LucidPro writes that "you cannot withdraw from the buffer."
• Your balance floor after a payout: because the balance stays at least at the buffer, a set gap remains above the drawdown line after you withdraw.

A buffer is not a fee. It is not money you pay the firm, but a level of profit you leave in the account. Whether you can receive the buffer profit when the account ends, however, depends on the firm and account, and in some cases you cannot.

Where does the drawdown stop after a payout?

To understand the buffer, it helps to first know where a trailing drawdown stops. With a trailing drawdown, the floor rises along with the balance high. At many firms, though, the line does not keep rising; it stops at some point.

Here is how each firm's official explanation describes the lock point. At every firm, the locked line sits at about the starting balance.

• Apex Trader Funding new PA: the threshold locks once it reaches the starting balance plus $100 (on 50K, a $52,100 peak balance gives a $50,100 threshold).
• Lucid Trading LucidPro: once the balance passes the Initial Trail Balance ($52,100 on 50K), the line locks at the initial balance plus $100 ($50,100).
• My Funded Futures Sim Funded: the maximum drawdown locks at plus $100 once it reaches "drawdown amount + $100."
• Take Profit Trader PRO: the drawdown stops when it reaches the initial balance.
• Topstep XFA: the starting balance is $0, and the line stops at $0 once the balance reaches the drawdown amount. After the first payout, it is fixed at $0.
• Tradeify Sim Funded: locks at the starting balance plus $100 when the EOD balance passes the drawdown amount plus $100 or when you request a payout, whichever comes first.

Put the lock point next to the level required as a buffer, and on many accounts the buffer sits near "locked line + drawdown amount." In other words, if you leave your balance at the buffer, you keep about the same gap after the payout as when you started.

Lock conditions differ by firm. Some, like Tradeify, say the line locks when you request a payout; others lock only when the balance reaches a set level. Before a payout, check on the firm's official help pages whether your account's line has already locked.

Payout buffer example: with and without a buffer (sample numbers)

To see how it works, here are sample numbers: an account with a $50,000 starting balance, a $2,000 drawdown, and a line that locks at $50,100. This is an illustration, not any specific firm's terms.

In the first row, a $2,000 gap to the floor remains after the payout, the same width as when the account started. In the second row, the payout is larger, but only $400 of gap remains, so a small loss on the next trade could end the account. The buffer exists to keep you out of the second row's situation after a payout.

Topstep explains that the XFA line is fixed at $0 after the first payout, and recommends building your balance until the line reaches $0 before you request. Firms without an explicit buffer amount follow the same idea.

What are the 3 types of payout buffer?

Lining up the firms' official explanations, buffers are shown in 3 main ways. Even within one firm, the type can differ by account.

1. A stated buffer amount or balance

The buffer is stated as an amount (or a balance to reach), and you can withdraw what is above it. Lucid Trading's LucidPro ($52,100 on 50K), My Funded Futures' Builder ($2,100 on 50K, with a $0 starting balance), Tradeify's Select Daily ($2,100 on 50K), and Take Profit Trader's PRO ($52,000 on 50K) are this type.

2. A minimum balance to request a payout

Rather than the word buffer, this type states the balance you need to request a payout. Apex Trader Funding's new PA separates the Safety Net ($52,100 on 50K) from the minimum balance to request ($52,600 on 50K). Tradeify's Growth Funded also uses a required balance ($53,000 on 50K).

3. Accounts with no buffer

Instead of a buffer, some accounts cap each payout as a share of balance or profit. Topstep's XFA caps each payout at 50% of the balance and a size-based amount. Tradeify's Select Flex has no minimum balance requirement and caps payouts at 50% of profit. Lucid Trading also describes its LucidFlex Funded as having no buffer.

With different types, "how much you can withdraw the first time" changes even for the same profit. Do not compare by the numbers in the table alone; check caps, minimum payouts, and the number of payouts in each firm's payout article.

What are the payout rules at each futures prop firm? (50K accounts)

This small table shows the payout type and how the buffer is stated for a typical 50K account at each of the 6 firms. Each firm has several account types with different conditions; only one account is listed here to show the type.

Apex Trader Funding's official articles describe the qualifying days for payouts differently. The payout rules article says 5 days, while the payout method article says "at least 8 trading days, 5 of them at $50 or more," and which applies is under review. Apex also says a request is automatically rejected if the balance falls below the minimum after you request.

See Apex Trader Funding payout methods and rules

See Lucid Trading payout rules

See My Funded Futures payout rules

See Take Profit Trader payout conditions

See Topstep payout rules

See Tradeify payout rules

What should you check before requesting a payout?

The buffer number is only one part of the payout conditions. Before you request, check these points on the firm's official help pages to reduce the chance your request is denied.

1. Your account type and purchase date: even at one firm, the buffer and caps can differ by account type and purchase date (before or after a rule change).
2. Whether the drawdown line has already locked: on some accounts, withdrawing before the lock leaves a smaller gap than you expect.
3. Buffer amount or required balance: the same $2,100 can be stated as "profit from the starting balance" at one firm and as "a balance to reach" at another.
4. Balance after the request: at firms that let you keep trading after a request, a loss that takes the balance below the minimum can get the request rejected.
5. Consistency and days: even with the buffer met, you cannot request without meeting the minimum trading days and consistency rule.
6. The buffer when the account ends: Take Profit Trader says you can withdraw 50% of the buffer after a PRO account closes. For other firms, check each firm's article.

Exact numbers for each firm change with account type and purchase date. Open each firm's payout article from the links below and check the row for your account.

See Apex Trader Funding payout rules

See Topstep payout rules

FAQ