The Initial Balance Drawdown is a rule you must comply with during both the evaluation process and the Aeon Trader phase.
If your account exceeds the drawdown limit based on the initial balance, you will lose access to your account.
For instance, with an 8% initial balance drawdown, if your account starts with $200,000 and your total losses (floating + closed) surpass $16,000, bringing your equity below $184,000, you will fail the challenge.
In the Aeon Trader phase, the balance is updated to reflect the "Scaled Balance," which is the snapshotted value at the time of a payout.
For example, if your account grows from $200,000 to $250,000, the 8% drawdown will be recalculated based on the new balance of $250,000, not the original $200,000.