Carrot Funding: the daily limit is measured on EQUITY — confirmed by our own account breaching, and the §24 cheatsheet cell is still wrong

Before (carrotfunding.io/rulebook §05 and §24, carrotfunding.io FAQ, and app.carrotfunding.io with two positions open, read 10 September 2026): Three sources said the limits are measured on equity — §05 applies them to "both realized and unrealized losses", the public FAQ says drawdown limits are "calculated based on equity, not balance, so open losing trades count toward your limits in real time" and that a breach fires "the moment your equity hits" a limit "even temporarily", and the app's chart plots equity in the same coordinate space as the limit lines it draws at 4,750 and 4,500. One line disagreed: the §24 cheatsheet cell reading "Balance-based (does not include floating P&L)". On 10 September 2026 we published the equity reading as correct, and recorded one thing as untested and explicitly not claimed: what the balance-based Objectives counter displays while a position floats at a LOSS. We were not going to lose money on purpose to find out. After (app.carrotfunding.io — our own paid 2-Phase $5,000 evaluation: equity chart, trade history and post-breach screen (login required), read against carrotfunding.io/rulebook §05 and §24, read 11 September 2026): Our own 2-Phase $5,000 evaluation breached on the evening of 10 September 2026, on the DAILY limit, and the dashboard read on 11 September carries the sequence. Two BTC/USD LONG positions at 5x, no stop loss, about $24,930 of notional, held overnight; BTC moved roughly 1.1% against them; both were force-closed at 19:30:42 at the same price, 77,420.0, and the day closed 4 trades at -$288.78, taking the account from $5,000 to $4,711.22. The chart settles it: BALANCE stayed flat at 4,986.169 the entire way down while EQUITY fell 5,054.693, 5,018.706, 4,922.21, 4,917.752, 4,879.217, 4,839.727, 4,836.86, then dropped vertically to 4,711.225 on the forced close. The realized balance never moved more than $13.83, so it is the equity that crossed the 4,750 daily floor. Two further observed facts: the account settled at 4,711.22 against a stated floor of 4,750, i.e. $38.78 THROUGH the limit — the forced close slipped past it — and the Max loss counter stopped at $288.78 of $500.00, leaving $211.22 of the total drawdown budget unused, so on this product the DAILY limit ends accounts and not the total one. One figure is DERIVED, NOT PHOTOGRAPHED, and is published as such: we have no capture of the Objectives counter mid-drawdown, but since it reads 5,000 minus the balance and the balance was frozen at 4,986.169, it would have displayed $13.83 of $500.00 while equity sat at 4,836.86, roughly $87 from death. THE §24 CELL IS STILL WRONG AND STILL PUBLISHED: nothing in the rulebook changed, and the cheatsheet remains the one line that misstates what crosses the limit. What it changes: If you trade a Carrot evaluation, the number that can end your account is the EQUITY reading, floating P&L included, and the limit that will realistically end it is the DAILY one, not the total. Do not size from the §24 cheatsheet cell: it describes how the limit LEVEL is set, from the balance high-water mark per §07, and misstates what crosses it. Two operational consequences from our own case. First, the Objectives counter on the dashboard is BALANCE-based, so it can read almost untouched while your equity is a few dollars from the floor — watch the chart and the absolute dollar floor, not the counter. Second, a forced close is not guaranteed to land exactly on the floor: ours settled $38.78 below it. The breach itself is OURS and not the firm's — no stop loss was set and 5x of notional was carried overnight, the engine enforced a published rule correctly, and the interface showed the floor in absolute dollars on screen the whole time. Nothing here is scored against Carrot and the score does not move: 73.2/100, grid of 10 September 2026. Recorded in figures and without adjectives: the post-breach screen reads Challenge Failed, then offers 15% OFF a new challenge behind a countdown reading 10:16:12.