Propr.xyz rules explained: target, daily loss & drawdown

Here's the whole Propr.xyz rulebook in one breath: hit a profit target without ever touching your daily loss limit or your max drawdown. That's it. On a 1-Step account the target is 10%, the daily loss is 3% and the drawdown is 6% static. On a 2-Step it's 5% then 10% to pass, with a 5% daily loss and an 8% trailing drawdown (I compare the two formats head-to-head in 1-Step vs 2-Step). There's no time limit, no consistency rule, no minimum trading days. I've run dozens of these evaluations, and almost every account I've seen blow up died for the same reason: someone misunderstood how the drawdown is measured. So let me break down every rule the way I wish someone had explained it to me — with the real numbers from the official rulebook (v1.0.2, April 2026).

The only two rules that can kill your account

Propr's entire risk model rests on two equity limits: the maximum daily loss and the maximum drawdown. Pass the profit target while respecting both and you're funded. Touch either one — even for a single second, even on an open position — and the account is gone. Everything else in this article is detail around those two numbers. Here's how they differ between the two evaluation types:

The 1-Step is faster and the drawdown is easier to track (it never moves). The 2-Step is cheaper up front and gives you a bigger buffer on the daily loss, but the trailing drawdown is sneakier. I'll come back to which one I'd pick at the end.

Equity vs balance: the distinction that breaches accounts

Before any rule makes sense you need this one definition, because it's the single most common thing new traders get wrong. Balance is your closed, realized P&L — money from trades you've actually exited. Equity is balance plus the floating P&L of every open position. The profit target is measured on balance(you have to close to bank it). But both risk limits — daily loss and drawdown — are measured on equity.

That asymmetry is the trap. You can be sitting on a winning balance and still get breached because an open trade dipped into unrealized loss and dragged your equity to the floor for a moment before bouncing. The risk engine doesn't wait for you to close. If equity touches a limit, the breach fires instantly. Trade as if the unrealized number is the only number that exists, because to Propr's engine, it is.

The profit target: how you actually pass

To pass, grow your account balance by the target. On a 1-Step that's a flat 10%; on a 2-Step it's 5% to clear Step 1, then another 10% from the carried-over balance to clear Step 2. Passing Step 1 automatically advances you and your balance carries over. Here are the exact dollar figures:

Because there's no time limit and no minimum trading days, you could technically pass in a single trade. I don't recommend it — that's a coin flip, not a strategy. The whole reason I built a DCA-based method to pass these challenges is that grinding the target in small, controlled increments keeps you miles away from the two limits that actually end runs.

The daily loss limit, decoded

The daily loss caps how much your equity can drop in a single day: 3% of starting balance on 1-Step, 5% on 2-Step. Two things changed in April 2026 that you need to know. First, the dollar limit is now fixed — it's set once from your starting balance and does not grow as your account grows. On a $100K 2-Step, that's always $5,000, forever, whether your equity is $99K or $130K.

Second, here's how the daily reset works. Every day at 00:00 UTC the system snapshots your equity. Your floor for the next 24 hours is that snapshot minus the fixed limit:

Equity floor today = day-start equity − fixed daily loss limit.

Example on a $100K 2-Step: the limit is $5,000. If your equity at 00:00 UTC is $99,495, your floor for the day is $94,495. Touch $94,495 at any point — even on a floating position that recovers a second later — and you're breached. No grace period, no warning. The practical takeaway: trade your worst hours of the day with the equity floor pinned to the top of your screen, and reset your mental risk budget at midnight UTC, not at your local midnight.

Max drawdown: static (1-Step) vs trailing (2-Step)

This is where most accounts die, so read it twice. The max drawdown is the absolute lowest your equity can ever go. How it's calculated depends entirely on which evaluation you bought.

1-Step — static 6%

The floor is set once from your starting balance and never moves: starting balance × 0.94. It does not trail up as you profit. So on a $50K account the floor is $47,000 — period. Grow the account to $60K and the floor is still $47,000, which actually means your effective buffer gets bigger as you win. That predictability is why I like the 1-Step for systematic strategies.

2-Step — trailing 8%

The trailing drawdown follows your High Water Mark (HWM), the highest equity your account has ever recorded — including floating P&L on open trades. The floor = HWM − (8% × starting balance). It trails up with new highs but never trails back down, and it stops trailing entirely once it reaches your starting balance. Walk through a $100K 2-Step:

• Start: HWM $100K, floor = $100K − $8K = $92,000.
• You profit to $105K (new HWM): floor = $97,000.
• You drop to $102K: floor stays at $97,000 (HWM doesn't fall).
• You profit to $108K: floor = $100,000, capped at starting balance.
• You run to $115K: floor stays at $100,000 — it won't trail past start.

The dangerous part is the early stage, when the floor sits just $8K below your peak and climbs with every floating tick up. A position that spikes your unrealized P&L then reverses can ratchet the floor higher and then breach you on the way down. Until your floor locks at the starting balance, treat a 2-Step like it's permanently one bad candle from disaster.

What a breach actually means

A breach is final. The moment your equity reaches or falls below either limit, the engine closes all open positions and permanently disables the account. There are no soft breaches, no resets, no appeals. The flip side, and it's a real one: you're never liable beyond your evaluation fee. A breach just means the account closes — Propr eats the market loss, not you. To try again, you buy a new evaluation. Knowing the downside is capped at the fee is what lets you trade the rules calmly instead of white-knuckling every tick.

The rules Propr deliberately does NOT have

This is the part I wish more people understood, because the absences are the selling point. Propr imposes none of the rules that trip traders up at legacy firms:

• No consistency rule — no cap on how much of your total profit can come from one day.
• No minimum trading days and no time limit — go as fast or slow as you want.
• No profit cap, no mandatory stop-loss, no risk-per-trade rule beyond leverage limits.
• No news-trading or weekend-holding restrictions — crypto is 24/7 and so are you.
• No strategy restrictions — scalping, swing, grid, DCA, all fine.
• Bots and copy trading are explicitly allowed, including copying between your own accounts.

That last line matters a lot for how I trade. Because automated trading and copy trading are permitted by the rulebook, a tool like Bubbles can run a disciplined DCA strategy or mirror a pro Pilot on your Propr account through the official Propr API without ever bending a rule. The Bubbles Radar (copy trading) exists precisely because Propr left that door open. The two equity limits are the only guardrails — how you stay inside them is entirely up to you (or your bot).

Funded account: what changes once you pass

When you pass, you get a funded account with the same starting balance — and the same two risk limits carry over unchanged (3%/6% on 1-Step, 5%/8% on 2-Step, still equity-based, still permanent on breach). What changes is simple: there's no more profit target, and payouts unlock. You trade freely and withdraw when you want. Don't make the classic mistake of relaxing once funded — the drawdown that evaluated you is the exact same drawdown that can end your funded run.

Payouts and the 80% profit split

You keep 80% of profits on a funded account; Propr keeps 20%. Payouts are on-demand in USDC on-chain, minimum $50, no waiting period, processed within 24 hours (Propr's published average is around 5 hours). The mechanic to understand: each payout is a full profit sweep. You can't withdraw part of your profit — when you request a payout, all profit above your starting balance is paid out at the 80% split, and your account balance resets to the starting amount, with drawdown limits resetting accordingly. On a 2-Step funded account, a payout also lowers your HWM by the payout amount. The on-chain settlement is the part legacy firms simply can't match — you can verify you got paid. I dug into the payout experience in my full Propr.xyz review.

Leverage caps by asset

Leverage is applied automatically and you can't change it — but you don't have to use the max. The caps:

With a 3% daily loss and a 6% drawdown, max leverage on a volatile altcoin is a fast way to breach. I rarely go near the cap. Sizing small relative to the limits is the entire game.

Prohibited conduct: don't try to game it

Strategies are unrestricted, but gaming the system is not. Propr bans exploiting platform bugs, account sharing or selling, identity fraud, opposite hedging across accounts, third-party trade coordination, account cycling as lottery tickets, latency/tick arbitrage, and wash trading. Detection runs on correlation analysis, IP and device fingerprinting, trade-pattern and payout-pattern analysis, plus on-chain forensics via Hyperliquid. Penalty is permanent termination with no payout and a ban — no appeal. Trade your own edge on your own account and none of this touches you.

KYC and restricted countries

KYC is not required to register, buy an evaluation, or trade — you can start immediately. It is required before your funded account activates and before any payout. You'll need a government ID and a live selfie; no proof of address, and it usually clears in minutes. Do it early to avoid delays. Propr can't serve residents of the United States, United Kingdom, Russia, all OFAC-sanctioned countries, and the Crimea/Donetsk/Luhansk regions of Ukraine. Trying to get around this with a VPN means termination with no refund or payout, so don't.

One more rule: the $200K account cap

You can hold multiple accounts at once, up to a combined $200,000 funded balance — for example a $100K plus a $50K plus a $25K, alongside extra evaluations. Useful if you want to diversify strategies or run one account on autopilot and another manually.

So which account should you pick?

Given the rules, here's my honest read. If you want the simplest risk math, go 1-Step: a static drawdown you can mark on the chart and forget, a single 10% target, and a buffer that grows as you win. If budget is tight up front and you're confident you won't spike-and-reverse early, the 2-Step is cheaper and gives you a 5% daily-loss cushion instead of 3% — just respect that trailing drawdown until it locks at your starting balance. Either way, the strategy that keeps you alive is the same: small size, steady accumulation, and never flirting with the two limits. That's the entire philosophy behind how I automate these challenges. New to on-chain funding? Compare the best decentralized prop firms of 2026 before you commit, and read my step-by-step on how to sign up on Propr.xyz.

FAQ — Propr.xyz rules

⚠️ Trading carries risk. Nothing is guaranteed and past performance does not predict future results. Rules cited from Propr's official rulebook (v1.0.2, April 2026) and may change — always check propr.xyz/rules. This article is informational and not investment advice. Do your own research and only trade what you can afford to lose.