FundedFirm drawdown rules
When the loss limit rises, what it is measured against, where it stops rising and what a payout does to it, in the firm’s own words.
What makes the loss limit rise · phase 1, funded
Our reading
It does not move at all
“Your overall drawdown is fixed at 6% of your initial account balance.”rules page · fundedfirm.com/trader-rules · 2026-09-13 · saved copy
Plans: Step 1
What the limit is measured against · phase 1, funded
Our reading
Live equity, open trades included
“If your equity falls below this threshold at any point, due to either floating or closed losses, it will result in a breach.”rules page · fundedfirm.com/trader-rules · 2026-09-13 · saved copy
Plans: Step 1
Daily limit · phase 1, funded
“The daily drawdown is calculated as 3% of the higher value between your starting balance or starting equity at the beginning of the trading day. This limit is fixed for the day and does not increase based on intraday profits.”rules page · fundedfirm.com/trader-rules · 2026-09-13 · saved copy
Plans: Step 1
What makes the loss limit rise · phase 1, phase 2, funded
Our reading
It does not move at all
“Your overall drawdown is fixed at 10% of your initial account balance.”rules page · fundedfirm.com/trader-rules · 2026-09-13 · saved copy
Plans: Step 2
What the limit is measured against · phase 1, phase 2, funded
Our reading
Live equity, open trades included
“If your equity falls below the daily or overall drawdown limit at any point whether due to floating or closed losses, your account will be immediately breached and access permanently revoked.”rules page · fundedfirm.com/trader-rules · 2026-09-13 · saved copy
Plans: Step 2, Instant
Daily limit · phase 1, phase 2, funded
“The daily drawdown is calculated as 5% of the higher value between your starting balance or starting equity at the beginning of the trading day.”rules page · fundedfirm.com/trader-rules · 2026-09-13 · saved copy
Plans: Step 2
What makes the loss limit rise · funded
Our reading
It rises tick by tick, while you trade
“From September 1, every new Instant account trades under a trailing drawdown, and an Instant account that is reset after a payout converts to the trailing drawdown from that point. Accounts opened before September 1 keep the fixed calculation above.”rules page · fundedfirm.com/trader-rules · 2026-09-13 · saved copy
Plans: Instant
Where the limit stops rising
Our reading
It never stops rising
“Unlike the daily line, this one does not reset at the start of a trading day. It trails your highest equity for the life of the account.”rules page · fundedfirm.com/trader-rules · 2026-09-13 · saved copy
Plans: Instant
Total loss allowed · funded
Our reading
5%
“The allowance is 5% of the balance the account started with, and your breach line trails your all-time high of equity, including your balance and floating positions.”rules page · fundedfirm.com/trader-rules · 2026-09-13 · saved copy
Plans: Instant
Daily limit · funded
“The trailing drawdown allowance is 3% of the balance your trading day opened on, plus any floating profit you carried into it.”rules page · fundedfirm.com/trader-rules · 2026-09-13 · saved copy
Plans: Instant
What makes the loss limit rise · funded
Our reading
It rises tick by tick, while you trade
“Your daily drawdown allowance is 3% of your starting balance/equity at the beginning of the trading day. Your breach line then trails your all-time high of equity, including your balance and floating positions during that day.”rules page · fundedfirm.com/trader-rules · 2026-09-13 · saved copy
Plans: Instant Daily
What the limit is measured against · funded
Our reading
Live equity, open trades included
“If your equity never reaches a new high, the line stays at $485. Touching or falling below the line is a breach.”rules page · fundedfirm.com/trader-rules · 2026-09-13 · saved copy
Plans: Instant Daily
Where the limit stops rising
Our reading
It never stops rising
“Every time your equity reaches a new high, the line moves up with it and never moves back down.”rules page · fundedfirm.com/trader-rules · 2026-09-13 · saved copy
Plans: Instant Daily
Total loss allowed · funded
Our reading
4%
“Your account has a 4% overall drawdown allowance based on the balance/equity the account started with.”rules page · fundedfirm.com/trader-rules · 2026-09-13 · saved copy
Plans: Instant Daily
Daily limit · funded
“Your daily drawdown allowance is 3% of your starting balance/equity at the beginning of the trading day.”rules page · fundedfirm.com/trader-rules · 2026-09-13 · saved copy
Plans: Instant Daily
See FundedFirm’s full page →FundedFirm payout rules →
This is what the firm publishes, not our opinion. When a firm changes a sentence we see it, and the date moves.