Maximum exposure must not exceed 3% at any time - this is calculated from either the initial balance if your balance is above the starting balance OR the current balance if your balance is below the starting balance.
Examples:
Scenario 1 - on your $100,000 account, if your balance is Above the $100,000 starting balance then maximum exposure of 3% is calculated using the starting balance
Scenario 2 - on your $100,000 account, if your balance is Below $100,000 starting balance then maximum exposure is calculated using your current balance e.g. Current balance is $99,000 then this is what the 3% maximum exposure will be based on.
- An "all or nothing" approach is strictly prohibited.
- Violations will result in a hard breach.