The Daily Loss Limit is 2% and resets each day at 5:00 PM Eastern Time. It is calculated using the higher of your account balance or equity at the reset.
Example: If your balance is $100,000 and your equity is $102,000 at the reset, the daily allowance is $2,040 and the breach level is $99,960. Touching or falling below that equity level during the following trading day results in a hard breach. With the Balance Based Daily Drawdown add-on, only your balance at the reset is used. In this example, the breach level would be $98,000.