TLDR: Traders must follow two key risk controls:
Maximum loss limit (MLL): Applies in both Rapid and Legacy Challenges. It’s based on the trailing end-of-day system and represents the total allowed loss before an account is breached.
In the Futures Challenge, strict loss limits ensure traders practice responsible risk management. These rules prevent excessive drawdowns and enforce discipline across both the Rapid and Legacy Challenges, though the details differ between them.
Loss Limit Definitions
Maximum Loss Limit (MLL)
The total amount you are allowed to lose in the Challenge.
Works on a trailing end-of-day (EOD) system:
Updates after each trading day based on your recorded highest balance.
The limit trails upward if your balance grows but never moves down.
Once it reaches the initial balance (after your first withdrawal or equivalent profit), it no longer moves further.
Applies to both Rapid and Legacy Challenges.
Loss Limits – Rapid Challenge
Account Size | Maximum Loss Limit |
$25,000 | $1,000 |
$50,000 | $2,000 |
$100,000 | $2,500 |
Loss Limits – Legacy Challenge
Account Size | Maximum Loss Limit |
$25,000 | $1,000 |
$50,000 | $2,500 |
$100,000 | $3,000 |
Disclaimer: The maximum loss limit for $25,000 Legacy and Rapid Challenges purchased or reset before November 21, 2025 are set to $1,250.
What Happens if You Hit the Limits?
Maximum loss limit (Rapid & Legacy):
Exceeding it results in a hard breach.
Your account will be permanently disabled, and you cannot continue trading.
Important: Once breached, you cannot reset or continue with a FundedNext Account.
🔗 Learn more: