During the verification phases, the maximum daily drawdown is defined as 5% of your initial funded account capital. This means that if you have a funded account of, say, $50,000, your daily drawdown limit is fixed at $2,500. This limit is static and remains the same each day, regardless of your account's peak performance. When calculating the daily drawdown, all floating losses, profits, and fees are included. Our system continuously monitors your account and computes the drawdown several times throughout the day, with the daily server reset occurring at UTC.
 

The daily drawdown is determined using the following formula:

Daily Drawdown = Peak Equity of the Day − Lowest Equity of the Day

Here are a few examples to illustrate:

• Example 1: If your account balance is $4,900 and your daily drawdown limit is $250, then your equity should not fall below $4,650 (including unrealized P&L). Falling to or below this level would breach your daily limit.

• Example 2: Consider an account starting at $5,000 with a daily limit of $250. If your equity rises to $5,200 during the day due to profits, but a flash crash later causes your equity to drop to $4,950 (including unrealized P&L), the daily drawdown rule is violated.

• Example 3: For an account valued at $100,000 with a daily drawdown cap of $5,000, suppose you open a trade that puts you $10,000 in unrealized profit, raising your equity to $110,000. If a sudden market drop reduces your unrealized profit to $5,000, your equity falls to $105,000. In this case, the drop from $110,000 to $105,000 equals the $5,000 limit, thereby breaching the daily drawdown rule.

This structure ensures that your losses do not exceed the predetermined risk threshold, maintaining a disciplined and controlled trading environment.