If your losses hit this limit, your account will be closed.

At the start, each account type has a predefined Max Drawdown amount:
$25,000 account → $1,000 EOD Max Drawdown
$50,000 account → $2,000 EOD Max Drawdown
$100,000 account → $2,500 EOD Max Drawdown
Your Max Drawdown is calculated daily at the end of day as:
End-of-day balance – fixed drawdown amount
For example:
If you start with a $100,000 account, your Max Drawdown is $2,500.
On Day 1, if your end-of-day balance is $101,000 → Max Drawdown threshold = $98,500.
On Day 2, if your end-of-day balance drops to $99,500 → Max Drawdown threshold will be still= $98,500.
On Day 3, if your end-of-day balance increases to $104,000 → Max Drawdown will lock in to initial balance $100,000.
This value stays fixed relative to your end-of-day balance minus the set amount, but it cannot fall below the initial balance minus the fixed drawdown amount.
Max drawdown will not decrease with any losses. Find more details here.