The maximum loss limit is the total amount a trader can lose in their Futures Challenge or FundedNext Account before their account is restricted from further trading. The maximum loss limit (MLL) follows a trailing end-of-day (EOD) system. This means it updates once per day, based on the highest balance your account reached that day. It doesn't change in real-time but adjusts at the end of each trading day.
How Does Maximum Loss Limit Work?
Sets the minimum equity a trader can have before the account is hard breached.
Moves up when the account balance increases until it goes to the initial balance, but never moves down when losses occur.
Updates only at the end of the trading day (EOD), not in real time.
Maximum Loss Limits by Account Size
Account Size | MLL for Rapid | MLL for Legacy |
$25K Account | $1,000 | $1,000 |
$50K Account | $2,000 | $2,500 |
$100K Account | $2,500 | $3,000 |
Disclaimer: The maximum loss limit for both the $25,000 Legacy and Rapid Challenges is set to $1,250 for the purchases or resets before November 21, 2025.
Example: How Maximum Loss Limit Adjusts Over Time
A trader starts with a $100K Legacy Challenge and an MLL (Maximum Loss Limit) of $3,000. This means the account balance cannot fall below $97,000.
Day 1:
The trader starts with a $100,000 balance. They make a profit of $1,000, bringing their balance to $101,000.
At the end of the day, the MLL is calculated:
$101,000 - $3,000 = $98,000.
The MLL is now $98,000.
Day 2:
The trader earns another $2,000, bringing their balance to $103,000.
At the end of the day, the MLL is recalculated:
$103,000 - $3,000 = $100,000.
Since the MLL has reached the initial balance of $100,000, it locks here and will not increase any further.
Day 3:
The trader's balance drops by $2,000 to $101,000. However, the MLL remains at $100,000 and does not decrease.
Day 4:
The trader's balance increases by $5,000, reaching $106,000.
At the end of the day, the MLL stays locked at $100,000. Despite the increased balance, the MLL won’t increase further beyond the initial balance.
If the trader's balance drops below $100,000 at any point, the account will be permanently breached.
The MLL adjusts based on the highest balance at the end of each trading day. However, once your profit increases enough that the MLL reaches the initial account balance, it locks at that level and does not move further.
Note: After the withdrawal of your first Performance Reward, your maximum loss limit will be set to your initial account balance. For example, if your account size is $50,000, after the withdrawal of Performance Reward, the MLL will also reset to $50,000.
Key Takeaways
Trailing EOD system: The maximum loss limit moves up with profits and locks at the initial balance. It will not decrease with any losses.
Hard breach: If a trader's balance reaches the maximum loss limit, the account is permanently breached.
Updated at the end of the trading day: The MLL adjusts only at the end of each trading day based on the highest balance reached. It does not change in real time. However, if your floating loss reaches the MLL during an active trade, your account will be instantly breached.
When the account reaches a profit equivalent to the MLL, the MLL locks in to the initial balance.
Tip: To manage your maximum loss limit effectively, track your account balance daily, use proper risk management, and plan trades carefully to ensure growth while staying within limits.