Drawdown Defender - Terms of Service

Last updated: October 12, 2026

These Terms of Service (“Terms”) are an agreement between you and Drawdown Defender LLC, a California limited liability company (“Drawdown Defender”, “we”, “us”). They govern your use of the Drawdown Defender website, web application and related services (the “Service”). By clicking to create an account, or by using the Service, you agree to these Terms and to our Privacy Policy. If you do not agree, do not use the Service.

Please read Section 6 (No guarantee), Section 13 (Limitation of liability) and Section 15 (Disputes and governing law, which includes an arbitration agreement and class action waiver) carefully. Drawdown Defender is a best-effort, automated risk tool. It can fail, and when it fails you can lose money or breach your firm’s rules.

1. Who can use the Service

• You must be at least 18 years old and able to form a binding contract.
• You must use the Service only for trading accounts that you are entitled to operate.
• The Service is offered globally, subject to applicable laws. You may not use it if you live in or are located in a country or region subject to comprehensive United States sanctions, or if you are on a United States government list of restricted or prohibited parties.

2. What the Service does

1. Connects to your trading account. You choose a supported platform (currently TradeLocker, DXtrade and Match-Trader) and provide your third-party platform credentials. We use them to sign in on your behalf, monitor your account data continuously in the background, and read metrics including balance, equity, and open positions. Certain features described in this Section, including automated position closing, may be deployed in phased releases or beta testing. Active functionality available for your account is specified within the Service application dashboard.
2. Watches your drawdown. You select your firm’s drawdown rule (for example static, trailing or daily loss) and configure your preferred drawdown thresholds (“protection line”). The Service periodically polls or receives data from the third-party platform to compare your equity against your protection line.
3. Closes positions at your line (where available). Where automated closing functionality is enabled on your account and made available in production by the Service, when protection is enabled and equity falls to or below the protection line, the Service attempts to close open positions on that account via API/platform protocols and transmit a confirmation notification. If automated closing is not yet enabled, is in testing/beta, or is unavailable for your platform or account, the Service operates in monitoring-and-alerting mode only.
4. Alerts you. We email or send in-app notifications to you about events such as protection actions, and about times when we cannot protect an account (e.g., API disconnection, platform rate limiting, or session invalidation).
5. It never opens a trade. The Service does not open, copy, reverse or modify positions, and does not place any order other than attempting to close open positions when triggered by your settings.

3. Your prop firm’s rules are your responsibility

• Prop firms set their own terms. Some restrict or prohibit third-party tools, automated risk managers, or account access from unauthorized IP addresses or proxy networks.
• Whether your firm permits you to use the Service is your determination, not ours. We do not review, approve or monitor any firm’s terms, and we make no statement that any firm allows the Service.
• You represent and warrant that your use of the Service complies with all terms, rules, and policies imposed by your prop firm, platform provider, or broker. When you add an account we ask you to confirm that you have checked your firm’s terms and that using the Service is permitted. We record that confirmation, and you are responsible for its accuracy. Firms change their rules; it is your responsibility to check them again from time to time and to remove the account if the Service is no longer permitted.
• If a firm restricts, disqualifies, or closes your account, withholds payouts, imposes penalties, or invalidates trading evaluation phases, Drawdown Defender LLC shall bear no liability whatsoever.
• You are responsible for setting a protection line and rule that match your firm’s actual rules. The Service applies the rule and line you choose; it does not verify them against your firm’s current terms.

4. Your credentials and your authorization

• By adding an account you authorize us to sign in to it with the details you provide, to read its data continuously, and (where you switch protection on) to close its open positions as described in Section 2.
• You may withdraw that authorization at any time by removing the account or deleting your Drawdown Defender account. You should also change the trading account’s password with your firm.
• We store your trading-account sign-in details encrypted, and use them only to provide the Service. See the Privacy Policy.
• Network routing. To connect to your trading account, we route our connection through a network address assigned to your Drawdown Defender account by a third-party proxy provider. If that route is unavailable we do not connect by another route; your account is shown as not protected and we alert you.
• Keep your Drawdown Defender password secure. You are responsible for activity under your account. Tell us promptly at support@drawdowndefender.com if you suspect unauthorized access.

5. Availability and when protection is not in force

• We design the Service for continuous operation, including redundant servers and automatic failover, but it can be unavailable or degraded.
• Protection is not in force whenever we cannot connect to your account or our systems cannot evaluate it, including: platform, broker or firm outages; your firm changing or rejecting your credentials; network or proxy failure; our database or servers being unavailable; scheduled maintenance; and the period between your adding an account and its first successful connection.
• When we detect that an account is not protected we show that state in the app and will try to email you. We cannot promise to detect every such period or that an email will arrive in time.
• If your firm or platform reports an account as closed, we stop monitoring it and switch its protection off. You can then remove it.
• We may perform scheduled maintenance, including automatic server restarts.

6. No guarantee

The Service does not guarantee that your account will not breach, lose money, or fail your firm’s rules. Among other things:

• Slippage, Latency, and Execution: prices can gap through your protection line during periods of high volatility, market opens, news events, or illiquidity, so a close can occur at a significantly worse price than your line or your firm’s floor;
• Platform & API Limits: closing orders are subject to slippage, partial fills, rejections, and the platform’s or broker’s behaviour;
• Data Delays: the platform, broker or firm may be slow, unavailable, or report outdated or inaccurate account balance or equity data;
• Rule Discrepancies: a firm may calculate its drawdown differently (e.g., high-water mark vs. closed equity) from the rule you selected;
• System Disruption: our systems, cloud infrastructure, network connectivity, or proxy routes can fail.

The Service is a risk monitoring software tool. It is not financial, investment, trading or legal advice, and it does not manage your account for you. Drawdown Defender LLC does not hold customer funds, act as a broker-dealer, or execute trades other than sending automated execution triggers configured by you (where automated closing functionality is active). You remain solely responsible for your trading decisions and your account. Drawdown Defender LLC is a technology provider, not a Commodity Trading Advisor (CTA), Introducing Broker, or financial adviser. The Service operates solely as an automated software execution tool that processes subscriber-defined parameters. Drawdown Defender does not exercise trading discretion, issue trading signals, recommend investment strategies, or hold customer funds.

7. Subscriptions, billing and taxes

• Plans. The Service is priced per protected trading account (“seat”), per month or year, as shown on our Pricing page.
• Annual billing. You may pay annually instead of monthly; an annual plan costs 10× the monthly price (two months free).
• Automatic Renewal Authorization. BY SUBSCRIBING TO THE SERVICE, YOU ACKNOWLEDGE AND AGREE THAT YOUR SUBSCRIPTION WILL AUTOMATICALLY RENEW ON A RECURRING BASIS (MONTHLY OR ANNUALLY, AS SELECTED) AT THE THEN-CURRENT SUBSCRIPTION RATE UNTIL CANCELLED BY YOU. YOU AUTHORIZE DRAWDOWN DEFENDER LLC (VIA STRIPE) TO CHARGE YOUR DESIGNATED PAYMENT METHOD AUTOMATICALLY AT THE BEGINNING OF EACH BILLING PERIOD.
• Cancellation Mechanism. You can cancel your subscription at any time online by navigating to your Account Profile settings and selecting “Cancel Subscription.” You can also cancel by emailing support@drawdowndefender.com. Cancellation stops future recurring charges. After you subscribe we email you a confirmation of these renewal terms, the cancellation policy and a link to cancel. We email you a reminder between 15 and 45 days before each annual renewal, with the renewal price, the charge date and how to cancel. If the price of your plan changes, we will notify you at least 30 days before the change takes effect, with the new price and how to cancel.
• Payments. Payments are processed by Stripe.
• Merchant of record. Where Stripe or its affiliate acts as the merchant of record for your purchase, your payment is also subject to Stripe’s terms for buyers, and Stripe collects and remits the applicable sales tax.
• Taxes. Prices exclude applicable taxes unless shown otherwise. Where tax applies it is calculated at checkout and shown before you pay.
• Switching to annual. If you switch a monthly plan to annual, we show you the amount charged today, including tax and any credit for unused monthly time, before you confirm. Your billing date stays the same.
• Changing seats. Adding seats takes effect immediately and is charged pro rata for the rest of the current period. Reducing seats creates a credit against future invoices.
• Credits are not refundable and cannot be exchanged for cash.
• Failed payments. If a payment fails we may retry it and may suspend protection after 7 days. We will tell you before protection stops. While protection is suspended we continue to show your account figures, but we do not close positions or send drawdown alerts.

8. Cancellation, refunds and account deletion

• Cancel anytime from your Profile. Cancellation takes effect at the end of your current paid period; protection continues until then.
• No refunds for partial periods, unused seats, or unused time, except where the law requires otherwise.
• Deleting your account ends the Service immediately. Any unused prepaid time and any credits are forfeited and not refunded. Before you confirm, we show you the dollar amount that will be forfeited. If you would rather keep protection until the end of your paid period, cancel your subscription instead and delete your account after it ends.
• After deletion we delete or anonymize your data as described in the Privacy Policy.
• For consumers located in the European Union or United Kingdom: By consenting to immediate performance at checkout, you expressly agree that performance begins immediately upon subscription and acknowledge that you waive your 14-day statutory right of withdrawal.

9. Acceptable use

You will not: use the Service for accounts you are not entitled to operate; share your Drawdown Defender account; attempt to access other customers’ data; probe, scan or test the Service’s security without our written permission; interfere with or overload the Service; reverse engineer it except where the law allows; or use it in breach of any law or of any agreement you have with a firm, platform or broker.

10. Third-party services

The Service depends on services we do not control, including trading platforms, prop firms and brokers, Stripe (payments), Google (sign-in, if you choose it), and hosting, email and network providers. Your use of those services is governed by their terms. We are not responsible for their acts, omissions or availability.

Trademark notice and non-affiliation. TradeLocker, DXtrade, Match-Trader and all related logos, marks and names are trademarks or registered trademarks of their respective owners. Reference to or display of third-party trademarks, software platforms or prop firms within the Service or website does not imply endorsement, sponsorship, affiliation or association between Drawdown Defender LLC and those third parties. Drawdown Defender is an independent software tool.

11. Changes to the Service and these Terms

We may change the Service, including supported platforms and features. We may change these Terms; if a change is material we will tell you by email or in the app at least 30 days before it takes effect. Continuing to use the Service after that means you accept the change.

12. Suspension and termination

We may suspend or terminate your access if you breach these Terms, if required by law, if your use creates risk for the Service or other customers, or if a firm or platform requires it. Where reasonable we will tell you first.

If we terminate your subscription for a reason other than your breach of these Terms, or we discontinue the Service or stop supporting a platform your accounts use, we will refund the unused part of any prepaid period for the affected seats. If we terminate for your breach, no refund is due. You may stop using the Service at any time as described in Section 8.

13. Disclaimers and limitation of liability

• THE SERVICE IS PROVIDED “AS IS” AND “AS AVAILABLE”, WITHOUT WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT, TO THE EXTENT THE LAW ALLOWS.
• TO THE EXTENT THE LAW ALLOWS, DRAWDOWN DEFENDER IS NOT LIABLE FOR ANY TRADING LOSSES, LOSS OF A FUNDED OR EVALUATION ACCOUNT, LOST PAYOUTS OR PROFITS, EVALUATION OR RESET FEES, OR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, EVEN IF ADVISED OF THEIR POSSIBILITY.
• OUR TOTAL LIABILITY FOR ANY CLAIM ARISING FROM THE SERVICE IS LIMITED TO THE FEES YOU PAID US IN THE 12 MONTHS BEFORE THE EVENT GIVING RISE TO THE CLAIM, OR US$100, WHICHEVER IS GREATER.
• Nothing in these Terms limits or excludes liability that cannot be limited or excluded under applicable law, including liability for fraud, willful misconduct or gross negligence.
• These limits reflect the allocation of risk between you and us, and our prices are set on that basis.

14. Indemnity

You will indemnify Drawdown Defender and its owners, employees and contractors against third-party claims (including by a prop firm, platform or broker) to the extent they arise from your breach of these Terms, your confirmation in Section 3 being inaccurate, or your misuse of the Service.

15. Disputes and governing law

These Terms are governed by the laws of the State of California, without regard to conflict-of-law rules.

Consumers outside the United States. If you are a consumer in the European Economic Area, the United Kingdom or another country whose law gives you protections that cannot be waived by contract, you keep those protections regardless of the governing law above. The arbitration agreement and class action waiver below apply to you only where the law of your country of residence allows them; otherwise you may bring claims in the courts of your country of residence, and we may bring claims against you only there.

Informal resolution first. If you have a dispute with us, email support@drawdowndefender.com with your name, your account email and a description of the problem, and we will try to resolve it with you informally. If we have not resolved it within 60 days of your notice, either of us may start arbitration or a small claims case as described below. We will follow the same steps before starting a claim against you.

Arbitration agreement. Any dispute between you and Drawdown Defender arising from or relating to these Terms or the Service that is not resolved informally will be resolved by binding individual arbitration administered by the American Arbitration Association (“AAA”) under its Consumer Arbitration Rules, rather than in court. The Federal Arbitration Act governs this agreement to arbitrate. The arbitrator decides all issues, including whether a dispute must be arbitrated, except that a court decides whether the “No class actions” paragraph is enforceable. The arbitrator may award you individually the same relief a court could. Any hearing will take place in the county where you live or by video, at your choice. If the AAA rules require you to pay a filing fee higher than the fee to file a claim in a California superior court, we will pay the difference.

Batching Provision for Coordinated Filings. If 25 or more similar arbitration demands are submitted against Drawdown Defender asserting similar claims by represented counsel or coordinated entities, the parties agree to administer the arbitrations in batches of 25. The AAA shall administer each batch as a single consolidated proceeding with one arbitrator and one set of administrative fees per batch. If any batching procedure under this section is held invalid or unenforceable, the remaining arbitration provisions shall remain in full force.

Small claims. Either of us may instead bring an individual claim in small claims court if it qualifies.

No class actions. You and we agree to bring claims only in an individual capacity, and not as a plaintiff or class member in any class, consolidated or representative proceeding. The arbitrator may not consolidate the claims of more than one person, except as the batching provision above provides. If this paragraph is found unenforceable for a particular claim, that claim will be heard in court under the next paragraph rather than in arbitration. Nothing in this Section waives your right to seek public injunctive relief in court where the law does not permit that right to be waived.

Opting out. You may opt out of this arbitration agreement by emailing support@drawdowndefender.com within 30 days after you first accept these Terms, stating your name, your account email and that you opt out of arbitration. If you opt out, or where this Section does not apply, disputes will be heard exclusively in the state or federal courts located in Santa Clara County, California, and you and we consent to their jurisdiction.

16. General

These Terms and the Privacy Policy are the entire agreement between you and us about the Service. If a provision is unenforceable the rest remains in effect. Our failure to enforce a provision is not a waiver. You may not assign these Terms; we may assign them in connection with a merger or sale of the business. Sections 3, 6, 13, 14 and 15 survive the end of your use of the Service.

Our rights. The Service, its software and its content belong to us or our licensors. We grant you a limited, non-exclusive, non-transferable right to use the Service in accordance with these Terms. We may use any feedback you give us without obligation to you.

Electronic communications. We communicate with you by email to the address on your account and by notices in the app. You agree that these electronic communications satisfy any requirement that a notice or confirmation be in writing, and you are responsible for keeping your email address current. Notices to us go to support@drawdowndefender.com or to the mailing address in Section 17.

California residents. Under California Civil Code Section 1789.3, California users are entitled to the following notice: the Complaint Assistance Unit of the Division of Consumer Services of the California Department of Consumer Affairs may be contacted in writing at 1625 North Market Blvd., Suite N 112, Sacramento, California 95834, or by telephone at (800) 952-5210.

17. Contact

Drawdown Defender LLC · 455 Market St Ste 1940, PMB 607149, San Francisco, California 94105-2448, US · support@drawdowndefender.com