What happens to drawdown limits after withdrawal/payout?

Overview

When you request a withdrawal from your funded account, your drawdown limits reset and recalculate based on your new account balance after the withdrawal.

Standard Accounts and Instant Accounts

After a successful withdrawal, your drawdown limit resets back to its initial state.

For Standard and Instant accounts, the maximum drawdown resets completely after each payout. Your new trailing drawdown is calculated from your updated account balance.

Example:

• Funded at $100,000 with a 5% trailing max drawdown limit ($5,000)
• Account grows to $110,000
• Withdraw $10,000
• Account balance is now $100,000
• New trailing max drawdown limit resets to 5% of $100,000 = $5,000

Buy Now Pay Later (BNPL) Accounts — Profit Rebuild Rule

BNPL accounts have a special Profit Rebuild rule that affects how withdrawal and drawdown work together.

How Profit Rebuild Works

When you withdraw profits from a BNPL funded account:

• You must leave a buffer — you cannot withdraw all profits at once
• Whatever profit you leave after withdrawal becomes your new drawdown limit for future trading
• You must rebuild that profit amount before making another withdrawal

Example

1. Funded at $100,000 with 8% max drawdown ($8,000)
2. Account grows to $110,000 (you've made $10,000 profit)
3. You withdraw $8,000, leaving $2,000 profit

• New balance: $102,000
• Your drawdown limit is now anchored to your original $100,000 funded balance
• You can only lose $2,000 before hitting the funded amount (where the account breaches)

4. You rebuild to $105,000 and withdraw $3,000

• New balance: $102,000
• Your new drawdown limit is now $2,000 (whatever profit remains after withdrawal)

Important Rules

• If you withdraw all profits without leaving any buffer, the Profit Rebuild rule will close your account permanently
• Your drawdown is anchored to your original funded balance — after withdrawal, you must keep your account above that initial funded amount or breach
• The daily drawdown limit (4% for BNPL) still applies on a daily basis during the funded phase

Key Takeaway

• Daily drawdown limits reset daily at 00:00 UTC regardless of account type
• Maximum drawdown limits reset after each withdrawal to match your new account balance
• BNPL accounts are different — the profit you leave becomes your new loss limit, and you must rebuild before withdrawing again

Updated on: 16/09/2026