TL;DR: Daily Loss Limit = Initial Balance x 4%, and Maximum Loss Limit = Initial Balance x 12%, calculated the same way as FundedNext's Stellar 2-Step Challenge. Both limits are based on your $25,000 initial balance, and any profit you bank before the limit is checked increases how much you're allowed to lose at that point, in both the Challenge Phase and on the FundedNext Account.
How do I calculate my Daily Loss Limit (DLL)?
Formula: Daily Loss Limit = Initial Balance x Daily Loss Limit Percentage (4%)
Swap charges, commissions, and fees are included in this calculation. Exceeding your Daily Loss Limit breaches your account.
Example 1: With no profit yet that day:
$25,000 × 4% = $1,000 Daily Loss Limit
Example 2: If you have made $500 in profit during the day:
$1,000 + $500 = $1,500 Daily Loss Limit
Losing more than $1,500 on closed or running trades that day would breach your Daily Loss Limit.
Your Daily Loss Limit resets every day at 00:00 (server time). Once it resets, the previous day's profit no longer counts, and your Daily Loss Limit returns to being purely a percentage of your initial balance: $25,000 x 4% = $1,000.
Here is a demonstration of how daily loss limit calculation works.
How do I calculate my Maximum Loss Limit (MLL)?
Formula: Maximum Loss Limit = Initial Balance x Maximum Loss Limit Percentage (12%)
Example 1: On a $25,000 FNL:002 12% MLL 3-Day Payout 2-Step 25K Challenge account: $25,000 x 12% = $3,000
Your account balance/equity must never drop below $25,000 minus $3,000 = $22,000. Dropping below this floor at any point, in the Challenge Phase or on the FundedNext Account, is a permanent breach of the account.
Example 2: If you make $1,000 profit, your Maximum Loss Limit increases to $3,000 + $1,000 = $4,000. You can now sustain a total loss of $4,000 from your original $25,000 balance, since your equity floor still sits at $22,000. The $22,000 floor itself does not move; it's the dollar amount you're allowed to lose from your current position that grows as your profit grows.
Here is an article explaining how the maximum loss limit is calculated.
If either limit is exceeded, the account will be considered breached or violated. You can find more details on this here.
Important note regarding server time
FundedNext's server follows a seasonal time adjustment: GMT+3 during Daylight Saving Time (typically the summer months) and GMT+2 for the rest of the year. Your Daily Loss Limit resets at 00:00 server time under this schedule.