A strategy’s Tolerance Factor refers to the limit placed on the max amount of investment. This feature protects both investors and strategy providers, operating as a safety mechanism.

**Calculating the Tolerance Factor****Using the Tolerance Factor to calculate the maximum amount of investment**

The formula used to calculate this looks like this:

Max amount for an investment*= Strategy equity * Tolerance Factor

*Total equity cannot exceed USD 200 000.

**Calculating the Tolerance Factor:**

The Tolerance Factor is a dynamic limit, weighted by the following:

**Strategy’s age**: For every 30 days from the day the first order is opened on the strategy account, the strategy gains a weight of 1.- In case strategy age is calculated before the end of a calendar month (30 days), the age is represented as a fraction of 30. For example, if calculating on the 15th day, the strategy age weight will be 15/30 = 0.5 = 0 (rounded down).
- In case of a stop-out, the age will be reset to 0.
**Strategy provider’s verification status**: 2 statuses exist- Fully verified - 2
- Not fully verified - 0.5

Example:Let us calculate the Tolerance Factor of a strategy where the first order was opened 90 days ago, and the strategy provider is fully verified.

Strategy age = 90/30 = 3

KYC status weight = 2

=> Tolerance Factor = 3 + 2 = 5

If this strategy faces a stop out after 90 days, on the day of stop out the strategy age is set 0 and the strategy is hidden.

=> Tolerance Factor = 0 + 2 = 2

Once a strategy is hidden due to stop out, it can still be invested in by direct links that maybe shared by strategy providers.

If a new order is opened on the strategy later, the age counter is reset. On the 10th day after the order is opened, strategy age = 10/30 = 0.33 = 0 (rounded down)

=> Tolerance Factor = 0 + 2 = 2

Using the Tolerance Factor to calculate the maximum amount of investment

Using the Tolerance Factor to calculate the maximum amount of investment

Let us calculate the maximum investment amount for a strategy with an equity of USD 10 000 and a Tolerance Factor of 5.

Maximum amount that can be invested = USD 10 000 * 5 = USD 50 000

### Points to note

- The maximum tolerance factor is set at 14.
- A strategy’s total investment limit is set at USD 200 000.