Payout Information
What is the Profit Split?
First Payout request (up to 5% PROFIT) = 100% to the Trader
Second Payout request = 80% to the Trader
Traders will receive 100% of their first payout request up to 5% of their profits. After the first payout of funds have been received by the trader, the profit split will become 80/20, with the trader receiving 80% of payouts and T4TCapital retaining 20% of the requested payout.
If you request a payout before your Trailing Maximum Loss Limit (TMLL) reaches your starting balance, your TMLL will automatically be set to the starting balance with a payout.
Once the payout request is processed, the TMLL will be automatically set to the starting account balance. The trader cannot allow the account balance to reach or go below their starting balance after a payout or the account will be closed.
Profit Payouts
When traders withdraw money from their account, the amount withdrawn will be split between T4T and the trader according to the profit share schedule.
It is calculated as follows:
First Payout request (up to 5% PROFIT) = 100% to the Trader
Second Payout request = 80% to the Trader
To be clear, this is per trader. If you make your first payout request and then lose your Live Funded Account, your next Live Funded Account payout will be 80/20 when you start back up again. You do not get the opportunity to make 100% of the first 5% of profits again!
When should I start taking payouts from my funded account?
An extremely important part of trading is rewarding yourself. It not only puts valuable cash in your pocket but the real value I believe is ‘it gives worth’ to your endeavours. It makes you appreciate your efforts and how valuable an income stream trading can become. The rewarding process will also help you realise that every trade is important and that overall will improve both your trade selection and trading process. The trick is knowing when to do it!
All you really need to think about is: how much drawdown do you need to stay in the game? The answer will be unique for each trader depending on their risk appetite and ability to manage a drawdown.
An easy way to work it out I believe is like this: the initial assessment has a 5% drawdown. Did that drawdown limit feel comfortable or uncomfortable? Once you work out the percentage drawdown you need/would like then simply set yourself some targets above that level.
Bear in mind, if you request a payout before your trailing MLL reaches your starting balance, you’re trailing MLL will automatically be set to the starting balance with a payout. That means if you request all your profits paid out then the account will be closed. So, you need to leave some cash in the account to continue trading. To give you a fighting chance to continue making money I believe 5% would the minimum you should leave in the account.
How Do Payouts impact my Account/Maximum Open Risk?
Your maximum position size is taken from your trading account balance. So, if you withdraw cash from your account, you will inadvertently be lowering your maximum open risk available.
More importantly though, if you request a payout before your trailing MLL reaches your starting balance, you’re trailing MLL will automatically be set to the starting balance with a payout. That means if you request all your profits paid out then the account will be closed. So, you need to leave some cash in the account to continue trading.
How Do I Request a Payout from my Funded Account?
The trader can decide when and how much of their profits they’d like withdrawn each month or if they’d like to roll them over to the next month.
You can request a payout at any time using this invoice form. When a payout is requested and approved, we will immediately remove the funds from the trader’s account. We will then prepare to send the funds to the trader via their requested method on the 1st business day of the next month.
We can process payout using the following methods:
- Bank Wire: The standard wire is the quickest and most efficient method available to make payouts. Traders must submit their bank information using the SWIFT format to ensure a successful transfer of funds. The bank account must be in the trader’s name. If you’ve signed up for assessment with a ‘dodgy email/name’ then this could be a problem for you!
- Cryptocurrency: if you paid us in Crypto’s, we’ll pay you back in Cryptos.
We are unable to process payouts via PayPal.
When will the Payouts be made?
The 1st of the month is payday!
Payouts are processed on the 1st business day of each month. So, bearing this in mind it’s wise to make the payout request at least a week before the end of the month to make sure you receive the cash on time otherwise it can take an extra three (3) to five (5) business days to receive the cash. International payments may take a few extra days depending on your bank.
If your account is inactive for longer than 6 months, we will close the account and you will get 80% of the profits made.
Payout Examples
Example 1: First Live Funded Account
A trader with their first $100,000 funded account makes $20,000 profit, taking their account balance to $120,000.
They request a withdrawal of $15,000.
The $15,000 is withdrawn from their trading account and distributed according to the Profit Share.
The trader gets:
100% of the first 5% profits ($5,000) = $5,000
80% of the profits above 5% ($10,000) = $8,000
Total = $13,000
Their trading account is reduced to $105,000 and they can continue trading with their Maximum Loss limit still at $100,000, their starting balance.
Example 2: Second Live Funded Account
A trader with their second $100,000 funded account makes $40,000 profit, taking their account balance to $140,000.
They request a withdrawal of $30,000.
The $30,000 is withdrawn from their trading account and distributed according to the Profit Share.
The trader gets:
80% of the profits ($30,000) = $24,000
Total = $24,000
Their trading account is reduced to $110,000 and they can continue trading with their Maximum Loss limit still at $100,000, their starting balance.
Example 3: The Impact of an Early Payout Request
A trader starts with a $100,000 account and makes $3,000, taking their account balance to $103,000.
They request a $1,000 payout.
The trader gets:
100% of the payout request up to 5% of profits ($1,000) = $1,000
Their trading account is reduced to $102,000 and they can continue trading with their Maximum Loss limit raised to $100,000, their starting balance.
