The cap is on potential profit if you are right, not on what you paid or your open gain.
All markets inside one event share a single cap; splitting positions creates no extra room.
Cheap contracts use the cap fastest: the lower the price, the more profit per share.
The cap by account size
The cap is 0.5% of plan size, the account size you bought. It does not move with your balance.
| Account size | Max profit per event |
|---|---|
| $5,000 | $25 |
| $10,000 | $50 |
| $25,000 | $125 |
| $50,000 | $250 |
| $100,000 | $500 |
It applies in the evaluation and on the funded account.
Potential profit, not cost
The cap counts what you could make if the position resolves in your favour. A share bought at a price pays $1.00 if you are right, so the potential profit per share is $1.00 − price. The largest position on one event is therefore: shares = cap ÷ ($1.00 − price).
On a $10,000 account the cap is $50:
- YES at 50¢ makes 50¢ per share, so you can hold up to 100 shares.
- YES at 20¢ makes 80¢ per share, so you can hold up to 62 shares.
- YES at 80¢ makes 20¢ per share, so you can hold up to 250 shares.
The amount you pay and your current open gain do not enter the calculation. A cheap contract uses the cap in very few shares.
One event, one allowance
All markets inside the same event are added together. Take a football match with markets for home win, draw and away win. If you hold YES on the home win and NO on the draw, both positions count against the same cap for that match.
Before you add a position, look at the combined outcome of everything you hold on that event and at how the platform groups it. Do not split a position across related markets to get around the cap; it is checked at event level for exactly that reason. If the grouping or the calculation is unclear, ask support before you place the order.
The consistency rule on top
The event cap does not replace the consistency rule, and the consistency rule does not replace the cap. At payout, no single day may make up more than 35% of your profit. If you request a payout on $800 of profit, your best day in it may be at most $280.
The two rules point the same way. The cap stops one event from carrying the account, and the consistency rule stops one day from doing it.
Working with the cap
- Pick fewer events and trade the ones where your view is strongest; the cap rewards selection more than volume.
- Check the price before the size: a 25¢ contract reaches the cap in a quarter of the shares a 75¢ one needs.
- Keep a running total of potential profit per event in your notes while you build a position.
- Leave a little room under the cap, so a second idea on the same event does not have to wait until you close the first.
The cap is not a target. Most positions should use only part of it; the rest of your risk plan, from the daily loss to the trailing floor, still decides how much you can afford to lose if you are wrong.
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MyFundedCapital School
Prediction Markets checklist
Rules as of 17 Oct 2026. Tick each line before your next session.
| Rule | Prediction Markets |
|---|---|
| Profit target | 10% |
| Daily loss limit | 3% |
| Maximum loss | 6% · trailing |
| Consistency | 35% |
| First payout | after 7 days |
| Then every | 7 days |
| Profit split | 75% → 90% |
1. How do prediction markets work?
- A winning share settles at $1.00, a losing one at $0.00; the price in between is the market’s odds.
- An event can hold several markets, and the risk rules group them by event.
- No shorting and no leverage: to take the other view, you buy the other side.
2. What are the Prediction Markets challenge rules?
- Daily loss: 3% of yesterday’s closed balance, checked on equity, reset at 17:00 New York time.
- The 6% floor follows your equity high and never stops at the starting balance.
- Funded: 75% split, first payout after 7 days, then every 7 days.
3. What is the max profit per event rule?
- The cap is on potential profit if you are right, not on what you paid or your open gain.
- All markets inside one event share a single cap; splitting positions creates no extra room.
- Cheap contracts use the cap fastest: the lower the price, the more profit per share.
4. What do YES and NO prices mean in a prediction market?
- Price in cents = cost per share = the market’s rough odds.
- Shares = amount ÷ price. Profit if right = shares × ($1.00 − price).
- A market price is an estimate, not a guarantee; liquidity and fees shape it too.
myfundedcapital.com/learn/
Questions
Does the cap apply on the funded account too?
Yes. The funded account keeps the max profit per event rule, along with the daily loss, the trailing floor, inactivity and the payout rules.
Is the cap based on my current balance?
No. It is a share of plan size, the account size you bought, so it stays the same as your balance moves up or down.
Related lessons
Tools and rules
Rules shown here come from the help center and the live rulebook; your program terms apply.
