Skip to main content

What Is the Maximum Drawdown Limit at Funded2?

At Funded2, each challenge and account type has a defined maximum drawdown limit. This represents the maximum total loss allowed before an account is considered breached and closed.

Public policy updated: 27 October 2026

Daily, overall and trailing limits

Programme fees checked 27 October 2026. These are stored base fees and calculated campaign prices; confirm the selected checkout total and add-ons before paying.

Programme and stage

Daily value in account records

Trailing allowance

Overall balance loss

Funded2 1-Step: evaluation and funded

0%

4%

8%

Funded2 2-Step: both evaluations and funded

5%

0%

10%

PAP 1-Step evaluation

8%

0%

15%

PAP funded $10K

0%

3%

6%

PAP funded: other catalogue sizes

3%

3%

6%

Instant funded

0%

3%

6%

Standard 1-Step, PAP funded and Instant use a trailing limit together with an overall maximum loss limit, with no separate daily loss limit. The maximum drawdown trails the peak. PAP evaluations and standard 2-Step retain their separate daily limits. Older PAP funded account records show a daily value of 3% except $10K at 0%; those older values should not be read as an additional daily limit on the trailing programme. If your dashboard or agreement shows different figures, ask support to confirm the limits, calculation and withdrawal treatment applicable to your account before trading. This programme description does not confirm how a particular account is being monitored.

What the numbers mean

An overall balance-loss limit and a trailing allowance are separate configured fields. Trailing applies to standard 1-Step, PAP funded and Instant; it is not exclusive to Instant. Do not infer a fixed high-water threshold, a breakeven lock or a payout freeze from a percentage alone. Confirm the applicable reference and current breach threshold for your account with support.

What Happens If You Breach the Maximum Drawdown?

  • Challenge accounts: The account is closed and considered failed

  • Funded accounts: The account is closed permanently and any remaining profits are forfeited

A drawdown breach does not result in a ban. Traders are always welcome to start again by purchasing a new challenge.

How to Stay Within Drawdown Limits

To manage drawdown effectively:

  • Always use stop-loss orders

  • Monitor both balance and equity, not just closed trades

  • Avoid oversized positions and excessive leverage

  • Be cautious during high-volatility periods

  • Keep risk consistent across all trades

Staying within maximum drawdown limits is essential for progressing to funding and maintaining a funded account at Funded2. If you’re unsure about your drawdown level, check your dashboard for real-time tracking or contact Funded2 support via funded2.com.

This public policy wording does not retroactively regrade trades or remove existing contractual rights. Ask support to confirm the terms applicable to an existing or legacy account.

Did this answer your question?