FundedVerse uses a trailing maximum drawdown model. The drawdown threshold trails upward with your account's highest equity watermark. The trailing floor locks once it reaches 96% of the initial account balance — after that point it becomes fixed and will not move further.
1-Step Challenge: 6% drawdown (all phases, including funded).
2-Step Challenge: 10% drawdown (all phases, including funded).
If your equity touches or drops below the trailing drawdown floor at any point, the account is immediately breached.