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> For a complete documentation index, see https://partner.ninjatrader.com/eval/overview/prop-firm-management/risk-management-setup/llms.txt.
> For AI client integration (Claude Code, Cursor, etc.), connect to the MCP server at https://partner.ninjatrader.com/_mcp/server.

# Risk Management Setup

## Overview

You can adjust and manage risk settings for your organization through several methods, with flexibility for both you and your traders.

---

## Partner Level Risk Management

The primary way to manage risk is through [Template Accounts](/overview/prop-firm-management/create-and-manage-users-and-accounts#template-account-id). Template accounts are set up to your specifications by an Evaluation Support representative.

When creating an account, you can use the `templateAccountId` field to specify from which template the created account will inherit its risk settings. The new account will inherit both its Risk Category and its AutoLiq Profile from the chosen template.

### Risk Categories

Risk Categories are templates that define *pre-trade risk*. These are settings such as the following:

* Which products can or cannot be traded by the account
* Max lot size for a given product or category of products
* Variable sizes between minis and micros
* Exchange level restrictions (such as EUREX or ICE)

Read the [Pre-Trade Risk](/overview/prop-firm-management/risk-management/pre-trade-risk) section for more details.

### AutoLiq Profiles

AutoLiq profiles are also inherited from the template account. An AutoLiq Profile controls calculations related to margin. You can use this entity to define a closing time for your traders. In combination with a `RiskTimePeriod` entity, the AutoLiq Profile can automatically liquidate all users at the time defined in the `RiskTimePeriod`. An Evaluation Support representative will create and set up your initial `RiskTimePeriod`, but you can edit the time for special events (such as [holiday trading hours](/overview/prop-firm-management/halt-trading/scheduled-trading-halts)).

### Custom User-Account-Level Risk Settings

When you create an account for a user, there is another configuration option that you can use to directly influence risk settings for an account. On the `createEvaluationAccounts` endpoint's individual account definitions, you can add the `preTradeRisk` field to define custom `UserAccountPositionLimit`s and `UserAccountRiskParameter`s. See the [Pre-Trade Risk](/overview/prop-firm-management/risk-management/pre-trade-risk) section and [CreateEvaluationAccounts](/api/rest-api-endpoints/users/create-evaluation-accounts) endpoint for more details.

### Post-Trade Risk

Where *pre-trade risk* settings are checked *before* a user opens a trade, *post-trade risk* settings are evaluated *after* an account has entered into a position. You can read more about these features in the [Post-Trade Risk](/overview/prop-firm-management/risk-management/post-trade-risk) section. There are two ways to set up post-trade risk, as well as a scenario for traders to set their own custom risk.

#### 1. Assign Post Trade Risk at Account Creation

The easiest way to set up post-trade risk is to assign it at the time of account creation ([CreateEvaluationAccounts](/api/rest-api-endpoints/users/create-evaluation-accounts)). Use the `postTradeRisk` field on an account entity to configure these settings. See the [Post-Trade Risk](/overview/prop-firm-management/risk-management/post-trade-risk) section for more details.

#### 2. `userAccountAutoLiq/update` Method

These same settings can be adjusted after account creation using the [`userAccountAutoLiq/update` endpoint](/api/rest-api-endpoints/risks/user-account-auto-liq-update). It accepts all the values described above, except it can be called after an account's creation to customize the settings.

#### 3. User Assigns Custom Post-Trade Risk

A user can be allowed to set their own custom post-trade risk settings, as long as those settings are *more restrictive* than the Partner-level settings. They have access to the same settings listed above, except that they must be defined to be more restrictive than those set by the Partner account-owner.

## Manual Lockouts

Traders in your organization can voluntarily lock themselves out of trading on a specific account for a set period. This helps traders protect their progress, whether that means locking in a winning day or stepping away before losses deepen.

* **Traders can't cancel their own lockouts.** Once activated, the lockout stays in effect until it expires or an organization administrator manually unlocks it.
* **Account-level lockout.** Only the specified account is locked. Other accounts belonging to the same user are not affected.
* **Closes positions and blocks orders.** When a trader activates a lockout, open positions on the account are liquidated and new orders are rejected until the lockout expires.

See [`createAccountLockout`](/api/rest-api-endpoints/users/create-account-lockout) for the full endpoint reference.

### Unlocking Accounts

Organization administrators can unlock accounts before the lockout expires:

* To unlock a single account, call [`expireAccountLockout`](/api/rest-api-endpoints/users/expire-account-lockout).
* To unlock all locked accounts for a user at once, call [`expireAllAccountLockouts`](/api/rest-api-endpoints/users/expire-all-account-lockouts).

To check whether accounts are currently locked, call [`accountLockoutStatus`](/api/rest-api-endpoints/users/account-lockout-status).

> **Note**
>
> An older user-level lockout ([`expireUserLockout`](/api/rest-api-endpoints/users/expire-user-lockout)) is still available for users on legacy mobile app versions. For new integrations, use the account-level endpoints listed above.

## Product Fungibility

### Overview

Product fungibility allows you to set unified risk limits across related products by using conversion ratios. Instead of managing separate limits, you can set one limit that applies to all related products, making risk management simpler and more flexible.

For example:

* 1 E-mini S\&P 500 Index (ES) = 10 Micro E-mini S\&P 500 Index (MES)
* 1 E-mini Nasdaq-100 Index (NQ) = 10 Micro E-mini Nasdaq-100 Index (MNQ)
* 1 Gold (GC) = 10 Micro Gold (MGC) = 100 1-Ounce Gold (1OZ)

With fungibility, you can trade different contract sizes within the same product family and they'll all count toward a single, unified risk limit.

#### Example of Fungibility in Futures Trading

With an exposed limit set to 3, product fungibility would allow any of the following:

* 3 GC contracts
* 30 MGC contracts
* 300 1OZ contracts
* Any combination that equals 3 GC

This gives traders flexibility to use different contract sizes while maintaining consistent risk exposure.

### Requesting Fungibility Configurations

To enable product fungibility, you must contact the API support team to configure the necessary settings on your behalf. A complete fungibility setup requires settings for both a **Position Limit** and a corresponding **Risk Parameter**. Please include all the required information in a single request.

#### How to Submit a Request

When contacting support, please specify the following:

1. The **Account** or **Risk Category** you wish to modify.
2. Whether you are requesting a **new** position limit or **editing an existing one**.
3. The parameters for both the Position Limit and the Risk Parameter as detailed below.

#### Part 1: Position Limit Settings

Provide the following details to define the main position limit.

* **Total By**: Specify how the position limit aggregates positions for risk checks.
  * `FungibleProduct`: Applies the `Fungible Exposed Limit` to *each* fungible product family individually.
  * `Overall`: Applies the `Fungible Exposed Limit` as a total *across all* specified fungible product families.
  * **Example**: With a `Fungible Exposed Limit` of 5, a user under the `FungibleProduct` setting can hold 5 ES-equivalent contracts *and* 5 NQ-equivalent contracts. Under the `Overall` setting, their combined total across both families could not exceed 5.
* **Fungible Exposed Limit**: Enter the total exposed limit for the position.
  * > **Note**
    >
    > This limit applies to the base fungible product (e.g., ES, GC, or NQ). A limit of 5 equals 5 ES, 50 MES, or any combination that adds up to no more than 5 ES.
* **Fungible Product**: Specify the base product for the position limit. Leave this blank to apply the limit to all product families.

  * **Example**: To apply the position limit only to the Gold product family (GC, MGC, 1OZ), you would provide `GC`.

#### Part 2: Risk Parameter Settings

For the position limit to take effect, you must also request a corresponding risk parameter with the following details.

* **Fungible Max Opening Order Qty**: The maximum order quantity (taking fungibility into account) when opening a position.
  * **Example**: If this is set to `5` and the net position is 0, a user cannot buy or sell more than 5 ES contracts or 50 MES contracts in one order.

* **Fungible Max Closing Order Qty**: The maximum order quantity (taking fungibility into account) when closing a position.

  * **Example**: If this is set to `5` and the net position is 10 (long), a user cannot sell more than 5 ES contracts or 50 MES contracts in one order.

* **Fungible Product**: Specify the base product for the risk parameter. To apply to all products, leave this blank.

  * **Example**: To apply the risk parameter only to the Gold product family, you would provide `GC`.

> **Warning**
>
> **Important**: For any product fungibility settings to take effect, the **Hard Limit** option must be enabled. Evaluation Support will ensure this is selected when configuring your request.

### Configuration Request Examples

Use the following examples as templates for your support requests.

##### Example 1: Limit each product family to 5

To set an exposed limit of 5 on each individual fungible product family:

* **Total By**: `FungibleProduct`
* **Fungible Exposed Limit**: `5`
* **Fungible Product (Position Limit)**: (leave blank)
* *(Include Risk Parameter settings as needed)*

##### Example 2: Limit only the Gold family to 5

To set an exposed limit of 5 on the Gold product family without limiting other fungible product families:

* **Total By**: `Overall`
* **Fungible Exposed Limit**: `5`
* **Fungible Product (Position Limit)**: `GC`
* *(Include Risk Parameter settings as needed)*

##### Example 3: Limit the total of all families to 15

To set an exposed limit of 15 across all fungible product families combined:

* **Total By**: `Overall`
* **Fungible Exposed Limit**: `15`
* **Fungible Product (Position Limit)**: (leave blank)
* *(Include Risk Parameter settings as needed)*

##### Example 4: Set separate limits for Gold and S\&P 500

To set an exposed limit of 5 on the Gold family and 5 on the S\&P 500 family, you must request two separate position limits.

**Request for Position Limit 1:**

* **Total By**: `Overall`
* **Fungible Exposed Limit**: `5`
* **Fungible Product**: `GC`
* *(Include corresponding Risk Parameter settings)*

**Request for Position Limit 2:**

* **Total By**: `Overall`
* **Fungible Exposed Limit**: `5`
* **Fungible Product**: `ES`
* *(Include corresponding Risk Parameter settings)*