# Daily Drawdown Protection

## What is it?

**Daily Drawdown Protection** is a paid option that prevents automatic challenge closure when the Daily Drawdown limit is reached. When the protection triggers, your challenge remains active, allowing you to continue trading the next day.

<div align="center"><img src="https://2303865195-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYCgfLjcYplUPlSZw0ES2%2Fuploads%2Fgit-blob-de2b668b7a2839203e3a74939a075b3120dacfcc%2FDrowdownProtection_en.png?alt=media" alt=""></div>

***

## 💳 Availability and Cost

### Which challenges is it available for?

The option is available when purchasing:

* ✅ **1-phase challenges** (Basic and Accelerated)
* ✅ **2-phase challenges** (Basic and Accelerated)
* ❌ **NOT available for Turbo (Instant)** — this challenge type has no Daily Drawdown requirement

### Cost

**15% of the base challenge cost**

> 📌 **Important:** The cost is calculated from the amount **including any applied discount**.
>
> **Example:** If a challenge costs $200 after discount, the protection option will cost $30 (200 × 15%).

***

## ⚙️ How does the protection work?

### Key characteristics

* 🔄 **Triggers once** during the entire challenge lifetime (regardless of phase)
* 🚫 **Does not prevent closure** when Max Drawdown is reached
* ⏱️ **Blocks trading** until the end of the current day after triggering

### What happens when it triggers?

When the Daily Drawdown limit is reached:

1. **All open positions are automatically closed**
2. **All limit and pending orders are cancelled**
3. **Trading is blocked until 00:00 UTC the next day**
4. **Challenge remains active** — you can resume trading the next day

### Example: Successful protection trigger

```
Challenge: $100,000 (2-phase, Basic)
Daily Drawdown limit: $5,000
Max Drawdown: $10,000

Day 1:
- Daily loss: -$5000 
- ✅ Protection triggers
- Positions closed
- Trading blocked until 00:00 UTC

Day 2:
- Trading unlocked
- Challenge continues
- Protection no longer available
```

***

## 🎨 Interface display

The option status is visually displayed with a shield icon:

| Status     | Icon              | Description                               |
| ---------- | ----------------- | ----------------------------------------- |
| **Active** | 🛡️ Intact shield | Protection available and unused           |
| **Used**   | 🪨 Cracked shield | Protection triggered, no longer available |

***

## ⚠️ Important limitations

### Critical to understand:

**Protection works ONLY for Daily Drawdown**

The option **DOES NOT protect** from:

* ❌ Max Drawdown
* ❌ Other challenge violation rules

***

## 🎯 When should you buy this option?

### ✅ Recommended if you:

* Use aggressive strategies with high volatility
* Trade news or major events
* Want to hedge against a single series of losing trades
* Are just starting and worried about risk management mistakes

*Daily Drawdown Protection gives you the right to one bad day, but doesn't replace the need to maintain discipline and monitor your overall account drawdown.*

***