What happens if I breach the drawdown limits?

2-Step Challenge & Funded Accounts #

If you hit the daily drawdown limit (4%) or maximum drawdown limit (8%), your challenge or funded account will be automatically closed.

What This Means

• Daily Drawdown Breach (4%) – If your account’s equity drops below the 4% loss threshold on any given day, your account will be disabled.
• Maximum Drawdown Breach (8%) – If your account’s equity falls below the 8% loss limit at any time, the account is permanently closed.

1-Step Challenge & Funded Accounts #

If you hit the max total trailing drawdown limit (4%), your challenge or funded account will be automatically closed.

What This Means

• Maximum Drawdown Breach (4%) – If your account’s equity falls below the trailing 4% loss limit at any time, the account is permanently closed.

What Happens Next?

• Account Review: The breach will be verified, and the account will be marked as closed.
• Loss of Challenge Account or Funded Status: If a challenge or funded account breaches the maximum drawdown, it cannot be reinstated.
• Reapply Anytime: You can start a new evaluation if you wish to try again.

How to Avoid a Breach

• Monitor Your Drawdown – Keep an eye on your risk and ensure your positions don’t exceed the limits.
• Adjust Position Sizes – Trading too large can cause unnecessary drawdowns.
• Use Stop-Loss Wisely– Protect your capital by managing your risk effectively.
• At Upside Funding, risk management is key—staying within the limits ensures you maintain your funded status and continue trading.