What is the Maximum Drawdown at Mubite?

The Maximum Drawdown is the total cumulative loss allowed on your account, calculated strictly from your initial starting balance.

• It is completely fixed: Unlike trailing drawdown, Mubite’s maximum drawdown does not move up as you make profits. It is locked in on Day 1 and remains at that exact dollar floor throughout your entire challenge.

• It tracks equity and balance: Both realized losses (closed trades) and unrealized losses (open floating positions) count toward this limit.

The maximum drawdown limit depends on the type of challenge you choose:

• 2-Step Challenge: 8% Maximum Drawdown (can be raised to 10% by purchasing an add-on).

• 1-Step Challenge: 6% Maximum Drawdown (can be raised to 8% by purchasing an add-on).

• Nitro Challenge: 5% Maximum Drawdown.

• Instant Funding: uses Smart Drawdown that starts at 10%.You can read more about Smart Drawdown here:
  https://mubite.com/en/frequently-asked-questions/smart-drawdown-rules-instant-funding

Example

On a $100,000 account with an 8% ($8,000) maximum drawdown limit:

• Your breach level is fixed at $92,000 ($100,000 − $8,000) from the very start.

• If your account balance grows to $106,000, your drawdown floor does not move—it stays locked at $92,000.

• If your account balance or floating equity falls below $92,000 at any point, the challenge is breached.

Because the drawdown is static, every dollar of profit you earn increases your safety cushion and gives you more breathing room to trade.