diff --git a/lib/trading/position-manager.ts b/lib/trading/position-manager.ts
index c6947a4..adb9bfe 100644
--- a/lib/trading/position-manager.ts
+++ b/lib/trading/position-manager.ts
@@ -494,6 +494,40 @@ export class PositionManager {
             trade.slMovedToBreakeven = true
             console.log(`🛡️ Stop loss moved to breakeven: $${trade.stopLossPrice.toFixed(4)}`)
             
+            // CRITICAL: Update on-chain orders to reflect new SL at breakeven
+            try {
+              const { cancelAllOrders, placeExitOrders } = await import('../drift/orders')
+              
+              console.log(`🔄 Cancelling old exit orders...`)
+              const cancelResult = await cancelAllOrders(trade.symbol)
+              if (cancelResult.success) {
+                console.log(`✅ Cancelled ${cancelResult.cancelledCount} old orders`)
+              }
+              
+              console.log(`🛡️ Placing new exit orders with SL at breakeven...`)
+              const orderResult = await placeExitOrders({
+                symbol: trade.symbol,
+                direction: trade.direction,
+                entryPrice: trade.entryPrice,
+                positionSizeUSD: trade.currentSize, // Runner size
+                stopLossPrice: trade.stopLossPrice, // At breakeven now
+                tp1Price: trade.tp2Price, // TP2 becomes new TP1 for runner
+                tp2Price: 0, // No TP2 for runner
+                tp1SizePercent: 0, // Close 0% at TP2 (activates trailing)
+                tp2SizePercent: 0, // No TP2
+                softStopPrice: 0,
+                hardStopPrice: 0,
+              })
+              
+              if (orderResult.success) {
+                console.log(`✅ Exit orders updated with SL at breakeven`)
+              } else {
+                console.error(`❌ Failed to update exit orders:`, orderResult.error)
+              }
+            } catch (error) {
+              console.error(`❌ Failed to update on-chain orders after TP1:`, error)
+            }
+            
             await this.saveTradeState(trade)
             
           } else if (trade.tp1Hit && !trade.tp2Hit && reductionPercent >= 85) {