How does the daily drawdown and max drawdown work for the ability challenge?

Daily Drawdown

Daily Drawdown | Phase 1 -  7.5% and Phase 2 - 5%
Daily Drawdown

• The maximum daily drawdown threshold resets every day at 12AM GMT+2 time based on balance or equity whichever is higher during the rollover, making it static for the day.
• Reset timing will be as follows as per the daylight savings time:
    March - October*
      MT5 : 22:00 GMT+1(12am GMT+3)
    November - February*
      MT5 : 22:00 GMT+0(12am GMT+2)
  *please note times are subject to change due to daylight saving time in the UK

Examples:
Scenario 1
The trader has a $120k Account. They have a max daily drawdown of $9k during Challenge Phase, so the Daily Drawdown level is set at $111k for the day. The trader opens the first trade and closes it with a profit of $3k. Their balance is now $123k and the new daily drawdown threshold will remain $111k. They open another position and close it at a loss of $10k. The balance is now $113k.
Result - The Account is still active since the threshold has not been reached.

Scenario 2
The trader has a $60k Account. They have a max daily drawdown of $4.5k during the Challenge Phase, so the Daily Drawdown level is set at $55.5k for the day. The trader opens the first trade and holds it till the end of the day at a profit of 4k and the day resets. At 12AM GMT+2 server time, the balance is 60k and floating equity becomes 64k so for that day the daily drawdown limit becomes $4.8k(7.5% of 64k), and the daily drawdown level is set at $64k - $4.8k = $59.2k. Now suppose the trade reverses and closes at a loss of $1k and the balance becomes $59k.
Result - The Account is violated since the daily drawdown level for the day was set at $59.2k and the balance became $59k.

Scenario 3
The trader has a $120k Account. They have a max daily drawdown of $9k during the Challenge Phase, so the Daily Drawdown level is set at $111k for the day. The trader opens the first trade and makes a loss of 6k and the day resets. 

At 12AM GMT+2 server time, the balance is 114,000 so for the next day the daily drawdown level is calculated from the balance and will be set at $105450 (7.5%* 114,000). Let's assume you have opened another trade the next day, and made a profit of $3k. The new account balance is 117,000 and the daily DD threshold is still the same at $105,450. You later open another trade and make a loss of $12,000. New balance or equity will be at $105,000.

Result - The Account is violated since the daily drawdown level for the day was exceeded by $450


Maximum Drawdown

Maximum Total Drawdown | Phase 1 - 15% and Phase 2 - 10%

• The maximum total drawdown is 15% during the challenge phase. Therefore, the equity of the account must not fall below 85% of the initial account balance both for open and closed positions, including commissions and swaps. Example: For a $60k Challenge account, your equity shall never go below $51k
• The maximum total drawdown is 10% during the Verification and Live phase. Therefore, the equity must not fall below 90% of the initial account balance both for open and closed positions, including commissions and swaps. Example: For a $60k Verification account, your equity shall never go below $54k.