---
title: "How does Floating Drawdown work on Funded Challenge and Funded Pro?"
description: "Explains funded FD rule."
url: https://help.finotivefunding.com/en/articles/925-how-does-floating-drawdown-work-on-funded-challenge-and-funded-pro
collection: "Core Risk Rules & Exposure Controls"
updated: 2026-11-08
language: en
---

# How does Floating Drawdown work on Funded Challenge and Funded Pro?

Explains funded FD rule.

Once a Challenge or Pro account reaches Simulated Funded Status, the 2.0% Floating Drawdown threshold is enforced. A reminder may appear at 1.5%.

A confirmed breach results in one Strike and Reward Payment reduction to 10% for the relevant Payout Cycle. Only one Strike may be issued per trade and instrument combination. Five cumulative Strikes result in permanent account closure.

**Related Terms:** Section 7.8.3