---
title: "What happens if the account touches the Maximum Drawdown level?"
description: "If your account reaches or exceeds the defined hard breach limit according to the program's calculation method, the account can be breached."
url: "https://getfundednow.com/faq/what-happens-if-i-touch-max-drawdown"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/faq/what-happens-if-i-touch-max-drawdown"
  pt-BR: "https://getfundednow.com/pt-br/faq/what-happens-if-i-touch-max-drawdown"
  fr: "https://getfundednow.com/fr/faq/what-happens-if-i-touch-max-drawdown"
  it: "https://getfundednow.com/it/faq/what-happens-if-i-touch-max-drawdown"
  de: "https://getfundednow.com/de/faq/what-happens-if-i-touch-max-drawdown"
disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds."
---

Drawdown & risk

# What happens if the account touches the Maximum Drawdown level?

If your account reaches or exceeds the defined hard breach limit according to the program's calculation method, the account can be breached.

[← All questions](https://getfundednow.com/faq)

## The full answer

If your account reaches or exceeds the defined hard breach limit according to the program's calculation method, the account can be breached.

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## Explained in full

- [Maximum Drawdown Rules](https://getfundednow.com/rules/max-drawdown) - The rule, explained - Maximum drawdown is 5% on Instant and 8% on 1 Step and 2 Step - $5,000 or $8,000 on a $100,000 simulated account, measured on equity.
- [Non-Trailing Drawdown](https://getfundednow.com/rules/non-trailing-drawdown) - The rule, explained - The 2 Step uses a 8% non-trailing drawdown: the stop-out level sits at $92,000 on a $100,000 account and never moves.

## Terms used in this answer

[Maximum drawdown](https://getfundednow.com/glossary/maximum-drawdown) · [Hard breach](https://getfundednow.com/glossary/hard-breach)

## Related questions

- [Can open positions cause a Maximum Drawdown breach?](https://getfundednow.com/faq/can-open-positions-breach-max-drawdown) - Drawdown & risk - Yes. Account equity matters when monitoring trading risk.
- [Can profitable trades offset a previous breach?](https://getfundednow.com/faq/can-profits-offset-a-previous-breach) - Drawdown & risk - No. Once a hard breach has occurred, a later market recovery does not undo it.
- [Do I need to use a stop loss?](https://getfundednow.com/faq/do-i-need-to-use-a-stop-loss) - Drawdown & risk - Your requirement to use a stop loss depends on the rules attached to your specific program/account.
- [What happens if a compulsory stop loss is missing?](https://getfundednow.com/faq/missing-compulsory-stop-loss) - Drawdown & risk - Where the account requires stop losses, placing a trade without one may result in action being taken against the position or account according to the current trading rules.

## More answers on maximum drawdown rules

- [What is Maximum Drawdown?](https://getfundednow.com/faq/what-is-maximum-drawdown) - Maximum Drawdown is the total amount your account is permitted to decline before the account is breached.
- [Does a new day mean yesterday's losses disappear from my overall drawdown?](https://getfundednow.com/faq/does-a-new-day-clear-my-overall-drawdown) - No. The Daily Loss Limit and Maximum Drawdown are separate rules - the daily calculation resets while your overall drawdown position does not.
- [Is Maximum Drawdown the same on every GFN plan?](https://getfundednow.com/faq/is-max-drawdown-the-same-on-every-plan) - No. Different plans can use different Maximum Drawdown limits and calculation methods.

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Source: https://getfundednow.com/faq/what-happens-if-i-touch-max-drawdown
Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt