> ## Knowledge Base Index > Fetch the complete knowledge base index at: https://maventrading.crisp.help/sitemap.xml > Use this file to discover available pages before exploring further. > Pure-Markdown content can be obtained by appending a '.md' suffix to the content URLs listed in the sitemap (without the trailing slash). # What are the drawdown limits? **What are the drawdown limits?** **One Step Challenge** \*\*Max Drawdown: \*\*5% (trailing off your highest watermark of equity) \*\*Daily Drawdown: \*\*3% (based on the higher of your equity/balance at 00:00 UTC) **Two Step Challenge** Max Drawdown: 8% (Static) \*\*Daily Drawdown: \*\*4% (Based on the higher of your equity/balance at 00:00 UTC) **Three Step Challenge** \*\*Max Drawdown: \*\*3% (Static) **Daily Drawdown:** 2% (based on the higher of your equity/balance at 00:00 UTC) **Instant Challenge** Max Drawdown: 3% (Trailing) **Daily Drawdown:** 2% (based on the higher of your equity/balance at 00:00 UTC) **Max Total Risk (Floating Loss):** 1% — at no point can your floating PnL (the difference between your balance and equity) exceed a 1% loss. For example, on a $10,000 account, if your equity drops below $9,900 at any moment, your account will be breached. This rule applies to total open floating PnL, not per trade. **Buy Now Pay Later (BNPL)** Evaluation phase: No daily drawdown limit / Max Drawdown: 10% (static) Funded phase: Daily Drawdown: 4% EOD (resets at 00:00 UTC) / Max Drawdown: 8% (trailing) Note: If your challenge or funded account hits any of the drawdown limits, then your account will be breached. The trailing max drawdown applies during both the challenge and the funded phase. If you hold a trade open at 00:00 UTC, the daily drawdown is calculated from whichever is higher — your balance or your floating equity at that moment. --- **How Trailing Max Drawdown is calculated for the 1-Step account:** The trailing drawdown tracks the **highest equity ever reached**, including unrealised (floating) profits from open trades — not just your closed balance. **Example** (5k account): * A trade is open and your equity peaks at $5,250. * You close the trade at $5,200, but your highest equity remains $5,250 (the floating peak counts). * 5% of $5,250 = $262.50 → your account cannot drop below $5,250 − $262.50 = **$4,987.50**. * If equity falls below $4,987.50 at any point, the account is breached. The trailing level rises as your equity grows. It **never locks or stops trailing** — it continues throughout the account's life and only resets after a payout. **How Trailing Max Drawdown is calculated for the Instant Funded account:** The trailing drawdown tracks the **highest equity ever reached** (high watermark), including unrealised (floating) profits from open trades — not just your closed balance. The drawdown threshold is **3%** of the highest equity point. **Example** ($2,000 account): * A trade is open and your equity peaks at $2,100. * You close the trade at $2,050, but your highest equity remains $2,100 (the floating peak counts). * 3% of $2,100 = $63 → your account cannot drop below $2,100 − $63 = **$2,037**. * If equity falls below $2,037 at any point, the account is breached. **After a payout**, the trailing drawdown tracker resets. The high watermark reverts to the account's starting balance, meaning the 3% floor is recalculated from the initial balance again (e.g. a $2,000 account resets to a floor of $2,000 − $60 = **$1,940**). > **Note:** If the drawdown tracker fails to reset automatically after a payout, contact support to have it manually corrected. **How Daily Drawdown is calculated for the 1-Step account:** The daily limit is based on whichever is higher — your balance or equity — at **00:00 UTC**. **Example** (5k account): * At 00:00 UTC: balance = $5,000, equity = $5,100 → limit based on $5,100. * 3% of $5,100 = $153 → equity must not drop below $5,100 − $153 = **$4,947** that day. --- **How is the daily drawdown calculated?** The daily drawdown is calculated based on the **higher of your equity or balance at 00:00 UTC** (daily reset). If you have an open trade at reset time, your equity (including unrealised P&L) is used if it is higher than your balance. If you have no open positions at reset, the drawdown resets based on your balance. The daily drawdown limit is **dynamic** — it changes as your account grows or shrinks, since it is always recalculated from the balance/equity at each daily reset. **Example (2-Step Standard account, $5,000 account):** * At 00:00 UTC, you have an open trade with equity of $5,100 and balance of $5,000. * Daily drawdown is calculated on the higher value: $5,100. * 4% of $5,100 = $204 daily limit. * Your account will breach if your equity drops below $5,100 − $204 = **$4,896** at any point that day. **Important:** If your equity breaches the daily drawdown limit even momentarily (e.g. during high-volatility periods or at the 00:00 UTC reset), the account is terminated immediately. Avoid trading at exactly 00:00 UTC to prevent accidental breaches caused by price fluctuations during the reset. --- **How Daily Drawdown is calculated for the 2-Step OMO account:** The OMO account uses an **equity-based daily drawdown** of 4%, calculated from whichever is higher — your balance or your floating equity — at **00:00 UTC**. This means that if you hold a trade open at the daily reset, your unrealized (floating) P&L is included in the starting drawdown reference, not just your closed balance. **Example ($5,000 OMO account):** * At 00:00 UTC: balance = $5,000, equity = $5,100 → limit based on $5,100. * 4% of $5,100 = $204 → your equity must not drop below $5,100 − $204 = **$4,896** that day. **Example ($2,000 OMO account with open trade at reset):** * At 00:00 UTC: equity = $2,070.57 (trade is open, unrealized profit included). * 4% of $2,070.57 = $82.82 → equity must not drop below $2,070.57 − $82.82 = **$1,987.75**. * If equity drops to $1,986.59, the account is breached — even if your total realized loss is below what you expected, because the floating P&L at reset raised the starting reference. **Important:** If you hold a trade open at 00:00 UTC and it has unrealized profits, those profits are included in your daily drawdown reference. A subsequent retracement can breach your daily drawdown limit even if your closed P&L alone would not have reached it. Once the daily drawdown limit is breached, the account is terminated immediately with no recovery. After a scale-up, drawdown limits are recalculated on the new account balance. For example, if a $5,000 OMO account is scaled to $7,000, the daily drawdown becomes 4% of $7,000 = $280, and the max drawdown becomes 8% of $7,000 = $560.