Drawdown de-risk threshold

The drawdown de-risk threshold is the automatic brake: the most your account is allowed to fall from its highest point, set in basis points (hundredths of a percent — 500 basis points = 5%) on Risk & Caps. When your account’s drawdown crosses it, SleeveFolio stops putting new money at risk instead of riding the slide.

What trips it

Drawdown is measured from the highest value your account has reached (its high-water mark). Cross the threshold and new buys stop — existing positions are not sold automatically; the brake de-risks by not adding, never by forced liquidation. (If you want out entirely, that’s what the kill switch is for.)

Recovery

The brake releases when drawdown recovers back inside the threshold. You can also raise the threshold (it goes through the same review-then-apply step as any other caps change) if you decide the limit was too tight — that’s a deliberate, logged decision rather than a silent override.