---
title: "How does Floating Drawdown work on Instant Funding?"
description: "Explains Instant FD pathway."
url: https://help.finotivefunding.com/en/articles/923-how-does-floating-drawdown-work-on-instant-funding
collection: "Core Risk Rules & Exposure Controls"
updated: 2026-11-08
language: en
---

# How does Floating Drawdown work on Instant Funding?

Explains Instant FD pathway.

On Instant Funding accounts, the Floating Drawdown threshold is 1.5% of the Initial Account Balance. A Dashboard or platform reminder may appear at 1.0%.

The first confirmed Floating Drawdown breach results in a Formal Warning only. From the second confirmed breach onward, each separate qualifying event results in one Strike and Reward Payment reduction to 10% for the relevant Payout Cycle.

**Related Terms:** Section 7.8.1