For 2-Step:

Traders are allowed to lose 5% of their initial account balance on any given day as their daily drawdown. If your initial account balance is $100,000, then 5% of the amount is $5000. At any point in a day, if the (running + closed) loss exceeds $5000, it will be considered a daily drawdown rule violation.

For 1-Step:

Traders are allowed to lose 3% of their initial account balance on any given day as their daily drawdown in the 1-Step account. If your initial account balance is $100,000, then 3% of the amount is $3000. At any point in a day, if the (running + closed) loss exceeds $3000, it will be considered a daily drawdown rule violation.