2-Step Plus Max Static Drawdown Rule
The Max Static Drawdown defines the maximum total loss allowed on your account. This rule applies equally during Phase 1, Phase 2, and the Funded stage.
If the account balance or equity reaches the max drawdown level at any point, the account is breached.
Max Drawdown Limits
Standard Max Drawdown: 8%
Launch Promotion: 10% max drawdown during the initial launch period
Unless otherwise stated, newly purchased accounts during the launch promotion will start with a 10% max static drawdown instead of 8%.
How Static Drawdown Works
The drawdown is calculated from the starting balance of the phase
The drawdown level is fixed and does not trail as the account grows
If your equity drops below the loss limit, the account will breach
The rule applies at all times, including during open trades
Drawdown Lock After First Payout
On funded accounts, the max drawdown behavior changes slightly after the first successful payout.
Before the first payout, the drawdown is calculated from the original funded starting balance
After the first payout is approved, the max drawdown locks at the starting balance
From that point forward, the account will only breach if balance or equity falls below the original starting balance
This lock ensures that traders do not lose already secured capital after their first payout.
Example, Evaluation Phase
A trader starts Phase 1 with a $50,000 account during the launch promotion.
Max drawdown: 10% = $5,000
Breach level: $45,000
If balance or equity drops to $45,000 at any point, the account is breached.
Example, Funded Account After First Payout
A trader receives a funded account with a $50,000 starting balance.
First payout is approved
Account balance grows to $62,000
After the payout:
The max drawdown locks at $50,000
Even if the account later grows to $80,000, the breach level remains $50,000
The account is only breached if balance or equity drops below $50,000.
Important Notes
Max drawdown is always based on closed balance and live equity
Open floating losses count toward drawdown
The launch promotion drawdown applies only to eligible accounts
Drawdown rules apply independently from daily drawdown limits