Max Overall Loss is the maximum total drawdown allowed on your account. If your equity drops to or below the threshold at any point, including on open positions, your account will be failed. Challenge Accounts The threshold is fixed from the start and never changes, regardless of any profits made. It is calculated once from your initial balance. For example, on a $10,000 account with a 10% Max Loss, your limit is always $9,000. Instant Funding Accounts The loss limit is trailing until the initial balance - it moves up as your equity grows. However, it will never exceed your starting balance, meaning once it reaches that level, your initial capital is fully protected. For example, on a $10,000 account with a 5% Max Loss (absolute loss = $500): Scenario A — your equity grows modestly Your equity reaches $10,300. The trailing floor is $10,300 − $500 = $9,800. Since $9,800 is below your starting balance, the floor stays at $9,800 - the mechanism behaves like a standard trailing drawdown. Scenario B — your equity drops without any prior profit Your equity falls immediately to $9,600. The floor stays at $9,500 (initial balance − 5%), unchanged. The mechanism behaves like a fixed limit until you make a profit