Payouts and TLV (Total Liquidation Value)

Halcyon Trader Funding Payout & Risk Policy

What happens when you take a payout Sim Funded Accounts?

At Halcyon Trader Funding, your Total Liquidation Value (TLV) is critical in managing risk and determining the right time to take a payout.

Once a payout is processed, your TLV requirement will automatically reset to your starting account balance.
(Example: A $50,000 account, after taking a payout, now cannot go below $50,000.00 or the account will be considered liquidated.)
This means you may not allow your account’s liquidation value to fall to or below your account's original balance after taking a payout.

To maximize your earning potential and maintain your payout-eligible account long-term, we recommend that traders maintain a sufficient buffer in the account to continue trading their edge or system effectively.

What is Total Liquidation Value (TLV)?

Total Liquidation Value (TLV) is the original starting balance of your payout account and represents the minimum equity level required to avoid account closure.

During the early phase of your account, a trailing or end-of-day drawdown is applied to manage risk. However, once you take your first payout on that account, the trailing or end-of-day drawdown is removed. From that point forward, you are trading on a full capital basis, and the TLV becomes a hard floor.

If your account balance falls below the TLV (your original starting balance) at any time after a payout, your account will be liquidated and forfeited. There is no longer a buffer or trailing stop—your account equity becomes your only line of defense.

How do payouts affect TLV?

• Upon your first payout, your TLV will automatically be set to $0.

• If your TLV has already reached $0, any subsequent payouts will not affect it.

• At $0 TLV, your account operates at full capital risk—you can only lose the capital in your account. There’s no trailing buffer.

• Taking a payout before your TLV hits $0 will lock your TLV at $0 early, removing the protective trailing drawdown regardless of how much buffer remains.

Summary: Best Practices for Long-Term Success

✅ Grow your account until you have sufficient capital to trade your system or edge
✅ Then begin taking regular payouts
❌ Avoid taking payouts before TLV = $0 if you want to maintain a risk cushion