The 1 Step Challenge uses a static drawdown model. Your drawdown floor is fixed from your original starting balance and never moves, even as your account grows.
Example on a $10,000 1 Step Challenge account:
Starting balance: $10,000
Maximum drawdown floor: $9,200 (8% below $10,000)
Daily loss limit: $500 per day (5% of $10,000)
If your account grows to $10,800 through profits, your drawdown floor remains at $9,200
Breaching either the maximum or daily loss limit is a hard breach and ends the evaluation (or, once funded, the account). Always monitor both limits throughout the trading day.