Initial balance drawdown is one of our rules, that you must follow during the evaluation process or during the E8 Trader Stage.
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If you go below the initial balance limit you will lose your account.

For example with an 8% initial balance drawdown, if you have an account with $200,000 (which is the initial balance) and your floating + closed loss exceeds the $184,000 (which is the max. initial balance limit) you will lose your challenge.
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Also keep in mind, that in the E8 Trader Stage, you get to keep the balance that is snapshotted during payout as a "Scaled balance". So if your account progresses from $200,000 to $250,000, the 8% initial balance drawdown will count from $250,000 and not $200,000.