> For the complete documentation index, see [llms.txt](https://ectype.gitbook.io/ectype-user-guide/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ectype.gitbook.io/ectype-user-guide/risk-types/risk-multiplier-by-equity.md).

# Risk Multiplier by Equity

Just like the risk multiplier by balance, Ectype's risk multiplier by equity calculates lot sizes dynamically. This time, we're looking at equity values instead of balances.

**How it Works**

1. We compare the <mark style="color:green;">Send To</mark> account's equity to the <mark style="color:green;">Copy From</mark> account's equity for lot size calculation.<br>

   Formula:

   ```rust
   (Send To Equity / Copy From Equity) * Copy From Lot Size * Multiplier
   ```

2. Fine-tune lot sizes with a multiplier – a straightforward way to adjust proportional equity-based risk.<br>

   Formula:

   ```rust
   (Send To Equity / Copy From Equity) * Copy From Lot Size * Multiplier
   ```

**Example Scenario**

* Copy From Equity: $15,000
* Send To Equity: $10,000
* Copy From Lot Size: 1 (standard lot)

  \
  With a multiplier of 1, the Send To lot size would be calculated as follows:<br>

  ```scss
  (10,000 / 15,000) * 1 * 1 = 0.67
  ```

  The <mark style="color:green;">Send To</mark> lot size is approximately 0.67, reflecting the proportional equity size.

**Tips**

* Use this feature for equity-focused risk management.
* &#x20;Adjust the multiplier to fine-tune risk based on equity ratios.