At CoveFunded, the Maximum Daily Drawdown Limit varies depending on the type of account or challenge you are participating in:

• One-Phase Challenge: The Maximum Daily Drawdown Limit is set at 3% of your account’s initial equity balance. This means that on any given day, you cannot lose more than 3% of the starting balance. Exceeding this limit will result in the failure of the challenge.

• Two-Phase Challenge: For this challenge, the Maximum Daily Drawdown Limit is 5% of your account’s initial equity balance. This provides a bit more flexibility compared to the One-Phase Challenge, allowing for slightly larger daily losses, but still within a strict limit to promote risk management.

• Swing Account: The Maximum Daily Drawdown Limit for Swing Accounts is also set at 5% of the account’s initial equity balance. This type of account is designed for traders who prefer holding positions overnight or over longer periods, but it still maintains a strict daily loss cap.

These limits are designed to encourage responsible trading and ensure that traders manage their risk effectively while participating in CoveFunded’s programs.