**Daily Drawdown**

**Maximum Daily Loss | 5%**

Your maximum daily drawdown is set at 5%, calculated based on your initial account balance. For instance, if you have a $100,000 account, the maximum daily drawdown allowed would be $5,000. This amount is subtracted from your daily starting balance or equity (whichever is higher) at the beginning of each new day, which typically occurs around 5 PM EST.

The maximum daily drawdown is reset every day at approximately 5 PM EST, with a small variation of around 3 minutes.

To provide an example, suppose you have a $100,000 account and currently have an open trade that is showing a floating profit of $10,000 at the time of the day change at 5 PM EST. Your daily drawdown would be calculated as follows: $110,000 - $5,000 = $105,000. Therefore, if your account balance falls below $105,000 the next day, it would result in a violation of the maximum daily drawdown rule.

**Maximum Drawdown**

**Maximum Total Drawdown | 8%**

The maximum allowable total drawdown is set at 8% for your account. This means that the equity of your account, including both open and closed positions, as well as commissions and swaps, must not fall below 92% of the initial account balance.

To provide an illustration, let's say you have an initial account balance of $100,000. The maximum drawdown limit for your account would be $8,000. This implies that your account's equity should not drop below $92,000.

It's important to adhere to this maximum drawdown requirement to ensure the preservation of your account's equity and overall risk management.

**Violations**

Any violation of the rules above will result in the termination of your trading account and you will not be eligible to move forward in the program with that account.