Topstep 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 · funded
Our reading
It rises with the day's closing balance
“The MLL is a trailing limit. It rises as your end-of-day balance grows, but never moves down.”help centre · help.topstep.com/en/articles/8284204-what-is-the-maximum-loss-limit · 2026-07-25
Plans: Express Funded Account (XFA)
What the limit is measured against · funded
Our reading
Live equity, open trades included
“monitored in real time throughout the session. Both realized and unrealized P&L count toward it.”help centre · help.topstep.com/en/articles/8284204-what-is-the-maximum-loss-limit · 2026-07-25
Plans: Express Funded Account (XFA)
Where the limit stops rising
Our reading
At your starting balance
“Once it reaches your starting balance, it locks permanently.”help centre · help.topstep.com/en/articles/8284204-what-is-the-maximum-loss-limit · 2026-07-25
Plans: Express Funded Account (XFA)
What taking a payout does to the limit
Our reading
It tightens, down to whatever the payout left you
“After your first Payout: Your MLL is set to $0 regardless of where it was before. The remaining balance becomes your effective loss floor.”help centre · help.topstep.com/en/articles/8284204-what-is-the-maximum-loss-limit · 2026-07-25
Plans: Express Funded Account (XFA)
This is what the firm publishes, not our opinion. When a firm changes a sentence we see it, and the date moves.