The maximum loss limit is the amount below which the capital or balance sheet cannot fall. This rule is set at 10% for the 2-stage and 8% for the 1-stage challenge of the initial account size.
For example, if a trader has an account of $100,000 and the maximum loss limit is 10%, the capital or balance cannot fall below $90,000 at any time.
For Instant accounts, the maximum overall loss is 5% of the starting balance. Example: on a $10,000 Instant account, balance or equity must not fall below $9,500 at any time.