Maximum Overall Loss (Drawdown)

The Maximum Total Loss (Drawdown) is the maximum loss you are allowed to incur overall during the challenge – regardless of the time period.

Overview of all models

Instant Funding	5%	Daily-Reset Equity Drawdown
1-step challenge	6%	Daily-Reset Equity Drawdown
2-step challenge	8%	Static

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Calculation

For Instant and 1-Step Challenge the drawdown "follows" your gains upwards. For the 2-Step Challenge it remains fixed.

Important: The drawdown includes all losses, fees and also open positions. If you fall below the limit, your account will be stopped.

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INSTANT FUNDING (5%)

Example 1 ($100,000 account):

You start with a drawdown at $95,000 ($100,000 minus $5,000). If you make $3,000 profit, your account balance rises to $103,000. Now your new drawdown is $98,000 ($103,000 minus $5,000).

Example 2 (Drawdown Fixation):

Once you reach 5% profit from the starting capital, the drawdown is permanently "frozen" at your original account level - it no longer follows upwards.

Additionally, a 1% safety buffer is added, so the final drawdown is $99,000 - it no longer follows upwards.

1-STEP CHALLENGE (6%)

Example 1 ($100,000 account, Daily-Reset system):

You start with a drawdown at $94,000 ($100,000 minus $6,000). If you make $3,000 profit, your account balance rises to $103,000. Now your new drawdown is $97,000 ($103,000 minus $6,000).

Example 2 (Drawdown Fixation):

Once you reach 6% profit from the starting capital, the drawdown is permanently "frozen" at your original account level - it no longer follows upwards.

Additionally, a 1% safety buffer is added, so the final drawdown is $99,000 - it no longer follows upwards.

2-STEP CHALLENGE (8%)

Example (Fixed Drawdown at $100,000 account):

No matter how much profit you make, your drawdown always remains at $92,000 ($100,000 minus $8,000). It never moves.

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Important Notes

• Unrealized losses from open positions count

• If exceeded, the account is stopped immediately

• Daily-Reset System: Drawdown adjusts daily to the highest account balance

• Fixation: At 5%/6% profit the drawdown is "frozen" + 1% safety buffer is added

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Frequently asked questions

What is the difference between the systems?

Instant and 1-Step have a flexible system that adjusts to gains. 2-Step has a fixed drawdown.

When is the drawdown fixed?

For Instant Funding from 5% profit, for 1-Step from 6% profit. For 2-Step never. After fixation a 1% safety buffer is added.

Do open positions count?

Yes, the current account value (including open positions) must not fall below the drawdown limit.

What happens if it is exceeded?

The account is stopped immediately and the challenge/the funded account is terminated.