A deposit bonus may say "cushion feature", but it is hard to see what that changes.
In short, a cushion means the bonus (trading credit) counts toward equity and absorbs losses after your own funds run out. The loss itself does not disappear.
This guide uses promotions listed on this site (checked on 28 October 2026) and a calculation with hypothetical figures to show the difference up to stop out.
Conclusion: a cushion means the bonus absorbs losses
"Cushion feature" is not an official standard term. It is a common name used by brokers and explainers. Judge by how the credit behaves when losses occur, not by the name.
Key point: a cushion does not erase losses. It adds room to absorb them, and you can still lose the bonus as well. See also the guide on the basics of forex bonuses for how credit and withdrawal conditions work.
- Cushioned: the credit counts toward equity and also absorbs losses after your own funds run out
- Non-cushioned: the credit only adds to margin. If the cash balance goes negative, the credit is taken back
- You can carry a floating loss up to the bonus amount, so losses may also grow larger
- It differs by broker and promotion. Check the credit, margin and stop out sections of the terms
A quick review of bonuses and margin level
Margin level is equity divided by required margin. The definition is the same as in the guide on leverage and stop out on this site.
When a bonus counts toward equity, the numerator gets larger and the margin level is shown higher. The floating loss you can carry before stop out also widens.
Note: required margin does not change because of a bonus. A bonus increases equity only. Required margin is set by trading volume and leverage.
- Required margin: the amount set aside to keep your open positions
- Equity: the account balance plus or minus floating profit and loss
- Margin level: equity ÷ required margin × 100 (%)
- Stop out: forced closing of positions when the margin level falls below the broker's level (similar to loss cut in domestic FX)
Cushioned vs non-cushioned: the differences
The difference appears when your own funds (cash balance) get close to zero. Either the credit absorbs the loss beyond that point, or it is taken back.
This table is a general way to organise how the mechanisms work. The terms of each promotion take priority. Non-cushioned bonuses come in two types: credit that is not counted in margin at all, and credit that is counted but taken back when the cash balance goes negative (the AXI100 type).
In both types, the credit itself cannot be withdrawn. Credit also tends to disappear on withdrawals or transfers between accounts. See the column on bonus withdrawal rules and expiry conditions on this site.
- Treatment of credit - cushioned: counts toward equity and absorbs losses; non-cushioned: not counted in margin, or only adds to it, and does not absorb losses
- When the cash balance nears zero - cushioned: the credit absorbs losses and trading can continue; non-cushioned: the credit is taken back and positions are closed
- Negative amount - cushioned: handled under the terms (the credit is used to cover it); non-cushioned: your own responsibility
- Withdrawal of the credit itself - cushioned: not possible; non-cushioned: not possible
Worked example: bonus in the margin level (hypothetical figures)
All figures below are hypothetical. They are not the terms of any broker or promotion. The stop out level is also assumed to be 20% for this example.
Key point: wider room means a wider potential loss. With a cushion, trading continues until the floating loss reaches ¥96,000. That is about twice the room without a bonus, so losses may be larger.
The "non-cushioned" column in the table assumes the type where the credit is deleted and positions are closed once equity falls below the credit balance. It simplifies the official description of the Axi 100% Loyalty Bonus (AXI100). Actual handling follows each broker's terms.
- Step 1, set the assumptions: own funds ¥50,000, credit ¥50,000, required margin ¥20,000 (hypothetical). Stop out at a 20% margin level (hypothetical)
- Step 2, starting margin level: equity is ¥100,000 in total. ¥100,000 ÷ ¥20,000 × 100 = 500%
- Step 3, equity at stop out: required margin ¥20,000 × 20% = ¥4,000. Positions are closed when equity falls to this amount
- Step 4, compare the floating loss you can carry: with a cushion, ¥100,000 − ¥4,000 = ¥96,000. Without a bonus, ¥50,000 − ¥4,000 = ¥46,000
- Floating loss ¥0 - cushioned: 500%; non-cushioned: 500%; no bonus: 250%
- Floating loss ¥20,000 - cushioned: 400%; non-cushioned: 400%; no bonus: 150%
- Floating loss ¥46,000 - cushioned: 270%; non-cushioned: 270%; no bonus: 20% (stop out)
- Floating loss ¥51,000 - cushioned: 245%; non-cushioned: credit deleted and positions closed; no bonus: already closed
- Floating loss ¥96,000 - cushioned: 20% (stop out); non-cushioned: already closed; no bonus: already closed
A cushion does not remove losses: three cautions
A cushion extends the distance to a forced closing. It does not reduce the burden of losses.
With a bonus you may also be able to choose a larger trading volume than usual. Decide volume from your own funds, excluding the bonus.
Note: do not raise trading volume because of a bonus. A volume that relies on the bonus size lowers the margin level sharply the moment the credit disappears. Set your risk per trade from your own funds. See the guide on money management basics on this site.
- Losses can grow until both your own funds and the credit are used up
- The terms decide whether a loss reduces the credit or the cash first
- Withdrawals, transfers between accounts and expiry dates can make the credit disappear
Non-cushioned bonuses and promotions listed on this site
This site names brokers in connection with a cushion only for promotions whose official terms have been checked. For other promotions, check the promotion page and the terms.
Checked dates: Axi JP25Axi on 1 October 2026, AXI100 on 22 October 2026 and INFINOX on 15 August 2026. The notes are based on terms provided by Axi, terms provided by INFINOX and the column on this site for HFM. Check the latest terms and your client area.
AXI100 is not available to Japan residents, so it is a reference example for English-language readers. Crypto exchanges also have similar bonuses that cover losses. Check them in the crypto edition of this site, and see the pages on Axi JP25Axi and the INFINOX 20% deposit credit bonus for their conditions.
- Axi 25% cushioned deposit bonus (JP25Axi) - treatment: cushioned. Note: for Japan residents. Credit is cancelled by withdrawals or transfers between accounts before the period ends
- Axi 100% Loyalty Bonus (AXI100) - treatment: non-cushioned. Note: credit is taken back when the cash balance falls below zero. Not available to Japan residents
- INFINOX 20% deposit credit bonus - treatment: official note says it can be used as margin but does not prevent a margin call or stop out. Note: credit may be deleted or adjusted proportionally on withdrawals or internal transfers
- HFM Top-Up Bonus account 20% deposit bonus - treatment: also works as a loss absorber (as summarised in the existing column). Note: it can be lost in full through losses. Deleted proportionally to the withdrawal ratio
How to check for a cushion in the terms
Work through the terms in order. If the terms do not state it officially, do not assume either way. Wait for the support reply before depositing.
If the credit does not appear after you opt in, see the checklist for when a bonus is not credited. The guide on welcome bonuses is also useful for sign-up offers.
- Step 1, check the eligibility on the promotion page: look at who is eligible, which accounts and the period. You can also see whether Japan residents are eligible
- Step 2, read the credit section of the terms: check the conditions for granting, whether it can be withdrawn and when it is deleted. In English terms, search for "credit" and "bonus"
- Step 3, find the margin and equity sections: check whether the credit is included in equity and margin calculations
- Step 4, read the stop out and negative balance sections: check whether the credit covers a negative balance or is taken back when the cash balance goes negative
- Step 5, ask support if unclear: if the terms say nothing, contact official support and save the reply as a screenshot or email
Frequently asked questions
Q. What is a cushion feature in forex bonuses?
A. It is a common name for a mechanism where the bonus (credit) counts toward equity and absorbs losses after your own funds run out. It is not an official standard term, so check the wording in the terms. The loss itself does not disappear.
Q. Is a cushioned bonus less likely to lose money?
A. Not necessarily. Because you can carry a floating loss up to the bonus amount, losses may also become larger. The credit cannot be withdrawn and may disappear on withdrawal or expiry. Decide trading volume from your own funds.
Q. What happens with a non-cushioned bonus?
A. For the Axi 100% Loyalty Bonus (AXI100), the credit is taken back when the cash balance falls below zero, and the negative amount is your own responsibility. However, it is not available to Japan residents.
Q. Does a bonus make a stop out less likely?
A. Where the credit counts toward equity, the margin level is shown higher and the floating loss you can carry before a forced closing is wider. INFINOX notes that its credit does not prevent a margin call or stop out.
Q. Where can I check whether a bonus has a cushion?
A. Check the promotion page and each broker's terms. In the terms, look for the credit, margin and stop out sections. If nothing is stated, ask official support.
Q. Does a cushioned bonus disappear if I withdraw?
A. For Axi JP25Axi, the credit is cancelled if you withdraw before the period ends. Internal transfers between accounts are treated as withdrawals. Check how the terms treat the credit before you withdraw.
Sources and conditions
FX Textbook is edited from official platform documentation, broker-published information and applicable terms where available. Account conditions, services and rules can change. Confirm the current terms in the broker's registration flow before you act.
FX Textbook is an independent information site, not a broker or provider of personal investment advice. Forex and CFDs involve risk. You may lose some or all of your invested capital. No trading result is guaranteed.
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Compare cushion and conditions before choosing a bonus.
Compare deposit bonus rates, limits and withdrawal conditions for listed brokers on the same basis. Check the cushion in the terms.