Why do some prop firms cap profits ?

A friend was on 2% drawdown on a $100k funded account , took a 1:7R swing trade and made $7k

Which took the account from $98,000 to $105,000

Time for payout....

Prop said the profit cap is $3k and so they deducted $4k ontop

Now $2k out of the remaining $3k recovered the 2% initial drawdown, leaving only $1k left for payout.

After 80/20 split.............. they paid only $800

Tbh I don't think this is fair.

And I don't know why some firms do this , but it's a screaming red flag. I.e. They don't have liquidity to run the business . Which can only mean one thing .

Again , this kind of BS story is what you can never experience with @fundingpips

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- Use code: DNA for 20% off if you're a first timer
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I wish us all the best this year.

Don't waste efforts!