At the start of each trading day (based on server time), the system records the higher value between your account balance and equity. Your equity must not drop below that value minus the daily loss percentage at any point during the day.
Example: if your 2-Step account starts the day at $100,000 balance and the daily loss limit is 5%, your equity cannot fall below $95,000 at any time during that trading day — including unrealised (floating) losses.