{"term":{"slug":"drawdown-floor","term":"Drawdown Floor","definition":"The minimum account balance or equity level before a prop firm terminates the account. If your balance or equity touches this level, the account is immediately closed and the evaluation or funded status is lost.","extendedExplanation":"The drawdown floor is the hard boundary that defines your maximum allowable loss. It is calculated differently depending on the drawdown type: static floors are fixed at account opening, while trailing floors move upward as your account grows.\n\nFor static drawdown, the floor is simple: starting balance minus max drawdown percentage. A $100K account with 10% static drawdown has a permanent floor at $90,000. For trailing drawdown, the floor starts at the same place but rises as you profit. If you grow to $105,000, an EOD trailing floor moves to $95,000 (on a $10K drawdown).\n\nThe floor is typically checked against either balance (closed trades only) or equity (including open trade P&L). Equity-based floors are stricter because a large unrealized loss can breach the floor even if you haven't closed the losing trade. Understanding exactly how your firm calculates the floor is essential for survival.","exampleWithNumbers":"Apex $50K with $2,500 trailing intraday drawdown: floor starts at $47,500. You make $3,000 intraday and your equity peaks at $53,000. Floor immediately moves to $50,500. You then give back $2,800 and equity drops to $50,200 -- below the $50,500 floor. Account terminated. The floor moved $3,000 up from $47,500 to $50,500 because of the intraday high.","category":"drawdown","relatedTerms":["trailing-drawdown","static-drawdown","equity-based-drawdown","balance-based-drawdown","margin-call"]},"_links":{"self":"https://runvigil.app/api/glossary/drawdown-floor","page":"https://runvigil.app/learn/drawdown-floor","allTerms":"https://runvigil.app/api/glossary","learn":"https://runvigil.app/learn"}}