The maximum drawdown limit for a 2-Step funded account is an equity limit based on the highest value your account balance has reached (your “high water mark”). Note that this is a dynamic limit, in that your maximum drawdown limit trails your high water mark.
For example: You have a $100,000 2-Step funded account. The maximum drawdown is $8,000 = an 8% decrease from $100,000. If your account balance is $103,000, but your high water mark is $105,000, your maximum drawdown limit is $97,000, calculated as follows: $97,000 = $105,000 - $8,000.