Traders must not exceed a daily loss limit of 4% based on the initial account balance. This rule is calculated using the difference between the starting equity of the day (at 00:00 UTC) and the lowest point of the account equity during that same trading day. If at any moment the trader’s equity drops more than 4% within a single day, the account will be considered in violation of the risk parameters and the evaluation will be failed, regardless of the overall performance or profit.