The 7% drawdown (DD) / maximum loss is calculated in real time based on your Allocation Account. If your losses reach 7% of your initial allocation funds, you may be dropped from the program or placed in quarantine.

What you need to know:

1. The 7% drawdown is based on unrealized losses — this means it considers the current value of open positions, not only closed trades. Exception: The Pro M stage has a higher maximum loss limit of 10%, not 7%. All other stages apply the -7% limit.

2. The drawdown is continuously measured in real time. You can drop out even if you later close profitable trades, because the limit is triggered by the current unrealized losses of your open positions at any point in time.

3. The 7% is calculated from your initial allocation funds at the start of the stage — not from your current balance or your highest-ever balance.

4. Any additional deposits made during a stage do not reduce the 7% loss limit — the reference point remains fixed at your starting balance for that stage.

5. If your losses exceeded the maximum allowed, your account enters Quarantine. In the Seed and Pro stages, there is no quarantine; removal from the program is immediate.