During both the Evaluation and Funded stages, your account will be assigned a Relative Max Drawdown of 6% based on the initial account balance. This means that the maximum allowable drawdown level will be 6% below your current account balance, unless you reach the Profit Target or the drawdown level reaches the starting account balance.
For example, if you have a $100,000 account, your initial Max Drawdown will be $6,000. Let's say your balance reaches $103,000. In this case, your Max Drawdown level will be set at $97,000, which is 6% below your balance ($103,000 - $6,000). If your equity falls below this level at any point, your account will be terminated.
On the other hand, if your balance reaches $106,000, your Max Drawdown level will be set at $100,000, and it will no longer adjust based on your balance. Even if your balance later increases to $112,000, your Max Drawdown level will remain at $100,000.