Prop Firm Drawdown Limitations

Learn how prop firm drawdown limitations work and why they are one of the most important rules in funding programs.

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Drawdown limitations are one of the most important rules in proprietary trading firm programs, defining how much loss a trader can incur before violating the account. These limits are designed to protect the firm’s capital and ensure traders follow strict risk management practices. Breaching a drawdown rule typically results in account termination, regardless of overall profitability.

There are different types of drawdown limits, including maximum daily drawdown and overall drawdown, which can be either static or trailing depending on the firm. In addition, drawdown can be calculated as equity-based or balance-based, which significantly affects how risk is measured during trading. It is also important to understand that similar terminology can have different meanings across firms, so traders should always review the terms and conditions carefully to fully understand how each rule is applied.

Proprietary Trading Firm	Drawdown Values
Atmos Funded	One-Step Standard Challenge: 3% Daily & 6% Maximum Trailing Loss One-Step Plus Challenge: 3% Maximum Trailing Loss Two-Step Standard Challenge: 5% Daily & 10% Maximum Loss Two-Step Plus Challenge: 3% Daily & 6% Maximum Loss Instant Funding: 3% Daily & 5% Maximum Trailing Loss
BestProp4U	One-Phase Challenge: 5% Daily & 6% Maximum Loss Two-Phase Challenge: 5% Daily & 7% Maximum Loss Instant Funding: 5% Daily & 8% Maximum Trailing Loss Pay Later Challenge: 5% Daily & 6% Maximum Loss $1M Challenge: Phase 1 – 8% Daily 11% Maximum Loss, Phase 2 – 7% Daily 9% Maximum Loss, Phase 3 – 5% Daily 7% Maximum Loss, Phase 4 – 4% Daily 5% Maximum Loss, Phase 5 – 2% Daily 3% Maximum Loss, Funded – 5% Daily 7% Maximum Loss
Blue Guardian	Standard One-Step Challenge: 4% Daily & 6% Maximum Trailing Loss Pro One-Step Challenge: 3% Daily & 6% Maximum Loss Standard Two-Step Challenge: 4% Daily & 8% Maximum Loss Pro Two-Step Challenge: 4% Daily & 10% Maximum Trailing Loss Three-Step Challenge: 4% Daily & 8% Maximum Loss Standard Instant Funding: 3% Daily & 6% Maximum Trailing Loss Starter Instant Funding: 3% Daily & 5% Maximum Trailing Loss
Blueberry Funded	One-Step Challenge: 4% Daily & 6% Maximum Loss Prime Two-Step Challenge: 4% Daily & 10% Maximum Loss Two-Step Challenge: 5% Daily & 10% Maximum Loss Elite Instant Funding: 10% Maximum Trailing Loss Lite Instant Funding: 2% Daily & 4% Maximum Trailing Loss
Bullwaves Prime	One-Step Challenge: 4% Daily & 8% Maximum Trailing Loss Two-Step Challenge: 5% Daily & 10% Maximum Trailing Loss
Crypto Fund Trader	One-Phase Evaluation: 5% Daily & 10% Maximum Loss Two-Phase Evaluation: 4% Daily & 6% Maximum Trailing Loss Instant Funding: 4% Daily & 6% Maximum Loss
Direct Funded Trader	Fast Funding: 4% Daily & 7% Maximum Loss Turbo Evaluation: 3% Daily & 8% Maximum Loss Two-Step Evaluation: 5% Daily & 10% Maximum Loss Instant Funding: 3% Daily & 6% Maximum Loss
DNA Funded	One-Phase Challenge: 4% Daily & 6% Maximum Loss Rapid Challenge: 3% Daily & 5% Maximum Loss Two-Phase Challenge: 5% Daily & 8% Maximum Loss Instant Funding: 4% Maximum Trailing Loss
E8 Markets	E8 Signature Challenge: 3% Maximum Loss E8 One Challenge: 4%, 6%, 8%, 10%, or 14% Maximum Loss (Changes With Profit Target)
Fintokei	SwiftTrader Challenge: 3% Daily & 6% Maximum Loss ProTrader Challenge: 5% Daily & 10% Maximum Loss Pro Trader Swing Challenge: 5% Daily & 10% Maximum Loss StartTrader Challenge: 3% Daily & 6% Maximum Loss
FTMO	One-Step Challenge: 3% Daily & 10% Maximum Loss Two-Step Challenge: 5% Daily & 10% Maximum Loss
Funded Trading Plus	Express Challenge: 4% Daily & 6% Maximum Trailing Loss Classic Challenge: 4% Daily & 8% (9% With Add-on) Maximum Loss Instant Funding: 6% Daily & 6% Maximum Trailing Loss
Funded7	One-Phase Challenge: 4% Daily & 8% Maximum Trailing Loss Two-Phase Challenge: 5% Daily & 10% Maximum Loss Instant Funding: 5% Daily & 8% Maximum Trailing Loss
FundedNext	One-Step Stellar Challenge: 3% Daily & 6% Maximum Loss Two-Step Stellar Challenge: 5% Daily & 10% Maximum Loss Stellar Lite Challenge: 4% Daily & 8% Maximum Loss Stellar Instant: 6% Maximum Trailing Loss
FundedTop	Quick Hike Challenge: 5% Daily & 10% Maximum Loss Steady Climb Challenge: 5% Daily & 10% Maximum Loss Toppers Challenge: 3% Daily & 6% Maximum Loss
FunderPro	One-Phase Challenge: 3% Daily & 6% Maximum Loss Pro Two-Phase Challenge: 5% Daily & 10% Maximum Loss Classic Two-Phase Challenge: 5% Daily & 10% Maximum Loss Instant Funding: 3% Daily & 6% Maximum Loss
FundingPips	One-Step Evaluation: 3% Daily & 6% Maximum Loss Two-Step Evaluation: 5% Daily & 10% Maximum Loss Two-Step Pro Evaluation: 3% Daily & 6% Maximum Loss Zero Program: 3% Daily & 5% Maximum Loss
FXIFY	One-Phase Challenge: 3% Daily & 6% Maximum Trailing Loss Lightning Challenge: 3% Daily & 4% Maximum Trailing Loss Classic Two-Phase Challenge: 4% Daily & 10% Maximum Loss Standard Two-Phase Challenge: 4% Daily & 10% Maximum Trailing Loss Three-Phase Challenge: 5% Daily & 5% Maximum Loss Standard Instant Funding: 8% Daily & 8% Maximum Trailing Loss Lite Instant Funding: 3% Daily & 4% Maximum Trailing Loss
Goat Funded Trader	Goat One-Step Challenge: 4% Daily & 6% Maximum Loss Goat Two-Step Challenge: 4% Daily & 10% Maximum Loss Standard Two-Step Challenge: 5% Daily & 10% Maximum Loss Pro Two-Step Challenge: 4% Daily & 8% Maximum Loss Three-Step Challenge: 4% Daily & 8% Maximum Loss Goat Instant Funding: 3% Daily & 6% Maximum Trailing Loss Pro Instant Funding: 4% Maximum Trailing Loss
Hola Prime	One-Step Prime Challenge: 3% Daily & 6% Maximum Loss One Challenge: 7% Maximum Trailing Loss Two-Step Pro Challenge: 5% Daily & 10% Maximum Loss Two-Step Prime Challenge: 5% Daily & 10% Maximum Loss Direct Account: 3% Daily & 7% Maximum Trailing Loss
iFunds	Instant Funding: 6%, 7%, 8%, or 10% Maximum Loss (Changes With Profit Split)
Leveraged	Turbo Trade Challenge: 3% Daily & 6% Maximum Trailing Loss Sprint Challenge: 1% Daily & 1% Maximum Loss Classic One-Step Challenge: 3% Daily & 6% Maximum Loss Classic Two-Step Challenge: 5% Daily & 10% Maximum Loss Classic Three-Step Challenge: 3% Daily & 6% Maximum Loss
Moneta Funded	One-Step Challenge: 3% Daily & 6% Maximum Loss Two-Step Challenge: 5% Daily & 10% Maximum Loss Instant Funding: 3% Daily & 6% Maximum Trailing Loss Phoenix Account: 3% Daily & 6% Maximum Loss
OFP	One-Phase Challenge: 3% Daily & 6% Maximum Loss Two-Phase Challenge: 5% Daily & 10% Maximum Loss Lite Instant Funding: 3% Daily & 5% Maximum Loss Classic Instant Funding: 3% Daily & 6% Maximum Loss or 5% Daily & 10% Maximum Loss Pro Instant Funding: 3% Daily & 6% Maximum Loss Prime Instant Funding: 5% Daily & 10% Maximum Loss
PipFarm	One-Step Evaluation: 9% Maximum Trailing Loss or 6% Maximum Loss Two-Step Evaluation: 3% Daily & 9% Maximum Loss Instant Funding: 6% Maximum Trailing Loss
Plutus Trade Base	Freedom Challenge: 3% Daily & 10% Maximum Loss Lightning Challenge: 6% Maximum Loss Adventure Challenge: 5% Maximum Trailing Loss Two-Step Challenge: 7% Daily & 12% Maximum Trailing Loss Instant Funding: 10% Maximum Trailing Loss
RebelsFunding	Copper Program: 5% Daily & 10% Maximum Loss Bronze Program: 5% Daily & 10% Maximum Loss Silver Program: 5% Daily & 10% Maximum Loss Gold Program: 6% Maximum Loss Diamond Program: 6% Maximum Loss
SFX Funded	One-Step Challenge: 3% Daily & 4% Maximum Loss Two-Step Challenge: 4% Daily & 8% Maximum Loss Instant Funding: 3% Daily & 6% Maximum Loss
SpiceProp	Chilli Pepper Challenge: 4% Daily & 11% Maximum Loss Mini Pepper Challenge: 5.5% Daily & 11% Maximum Loss Sweet Pepper Challenge: 5.5% Daily & 11% Maximum Loss Black Pepper Challenge: 5.5% Daily & 11% Maximum Loss Cayenne Pepper Challenge: 3% Daily & 7% Maximum Loss Jalapeno Pepper Challenge: 2.5% Daily & 5% Maximum Loss
SuperTrade	Two-Phase Challenge: 7% (5% Once Funded) Daily & 7% (10% Once Funded) Maximum Loss Instant Funding: 3% Daily & 4% Maximum Loss
Sway Funded	Rapid Challenge: 5% or 10% Daily & 10% or 20% Maximum Trailing Loss (Changes With Profit Target) Regular Challenge: 5% or 10% Daily & 10% or 20% Maximum Trailing Loss (Changes With Profit Target) Instant Funding: 3% Daily & 8% Maximum Trailing Loss
The5%ers	Pro Growth: 3% Daily & 6% Maximum Loss Hyper Growth: 3% Daily Pause & 6% Maximum Loss High Stakes: 5% Daily & 10% Maximum Loss Classic High Stakes: 5% Daily & 10% Maximum Loss Bootcamp: 5% Maximum Loss (3% Daily Pause & 4% Maximum Loss)
Tradexprop	One-Step X Challenge: 5% Daily & 6% Maximum Loss Two-Step X Challenge: 5% Daily & 8% Maximum Loss Instant Funding X: 5% Daily & 8% Maximum Trailing Loss
VanquishTrader	Options Challenge: 5% Maximum Trailing Loss Advanced Options Challenge: 5% Maximum Trailing Loss
Wall Street Funded	Rapid Challenge: 4% Daily & 6% Maximum Loss Classic Challenge: 5% Daily & 8% Maximum Loss Ultra Challenge: 5% Daily & 10% Maximum Loss Pro Instant Funding: 3% Daily & 5% Maximum Loss Standard Instant Funding: 3% Daily & 6% Maximum Loss