---
title: "How does Floating Drawdown work during Challenge or Pro Challenge?"
description: "Explains challenge reporting for floating drawdown."
url: https://help.finotivefunding.com/en/articles/924-how-does-floating-drawdown-work-during-challenge-or-pro-challenge
collection: "Core Risk Rules & Exposure Controls"
updated: 2026-11-08
language: en
---

# How does Floating Drawdown work during Challenge or Pro Challenge?

Explains challenge reporting for floating drawdown.

During Challenge and Pro Challenge phases, the Floating Drawdown threshold is 2.0% of the Initial Account Balance.

Reaching the threshold does not result in a real-time alert, email alert, platform notification, soft warning, Strike, Account Reset, Reward Payment reduction, or account closure. Relevant findings may be included in the Challenge Phase Progression Report.

**Related Terms:** Sections 7.3 and 7.8.2