During the Challenge or Pro Challenge phase, the Floating Drawdown threshold is 2.0% of the Initial Account Balance.
Reaching this threshold does not cause a Strike, reset, payout reduction, or account closure. It is a soft-warning measure only.
Example: on a $100,000 Challenge account, a combined unrealised loss of $2,050 on one symbol equals 2.05%. During Challenge, this may trigger a soft warning but it does not create a Strike or close the account under the Floating Drawdown rule.
Related Terms: Section 7.7.2
