TLDR: Traders must follow two key risk controls:
Daily Loss Limit (DLL): Applies only in the Legacy Challenge. It restricts how much you can lose in a single day.
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 Challenge, though the details differ between them.
Loss Limit Definitions
Daily Loss Limit (DLL)
The maximum loss allowed in one trading day.
Applies only in the Legacy Challenge.
No daily loss limit exists in the Rapid Challenge.
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 | Daily Loss Limit | Maximum Loss Limit |
$25,000 | – | $1,250 |
$50,000 | – | $2,000 |
$100,000 | – | $2,500 |
Note: In the Rapid Challenge, there is no daily loss limit. Only the maximum loss limit applies.
Loss Limits – Legacy Challenge
Account Size | Daily Loss Limit | Maximum Loss Limit |
$25,000 | $600 | $1,250 |
$50,000 | $1,200 | $2,500 |
$100,000 | $2,400 | $3,000 |
What Happens if You Hit the Limits?
Daily Loss Limit (Legacy only):
Exceeding it results in a soft breach.
You cannot trade for the rest of the day, but your access is restored automatically the next day.
Maximum Loss Limit (Rapid & Legacy):
Exceeding it results in a hard breach.
Your account will be permanently disabled, and you cannot continue trading.
You may restart the Challenge by giving a reset fee for the same account.
Important: Once breached, you cannot reset or continue with a FundedNext Account.
Key Takeaway
Rapid Challenge: Only the maximum loss limit applies.
Legacy Challenge: Both daily loss limit and maximum loss limit apply, making it more structured.
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