> For the complete documentation index, see [llms.txt](https://docs.propfunding.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.propfunding.com/trading-rules/profit-targets-and-loss-limits.md).

# Profit Targets & Loss Limits

Propfunding uses a 2% qualification target, a 5% daily loss limit, and a 20% static maximum loss. Trading balances, profits, and losses are measured in PRP.

### Qualification Target: 2%

To qualify, grow your account by **2% of its starting PRP balance**, trade on at least **3 separate trading days**, and follow all trading rules.

| 10,000 PRP Account    | Requirement |
| --------------------- | ----------- |
| Required profit       | 200 PRP     |
| Qualification balance | 10,200 PRP  |
| Minimum trading days  | 3           |
| Consistency rule      | None        |

If you reach the 2% target before completing 3 trading days, you must complete the remaining required trading days while keeping your account within the rules and meeting the profit target.

Once both requirements are met, pay the activation fee, complete KYC, and redeem your qualifying profit. Your account then resets to its starting balance.

### Daily Loss Limit: 5%

Your account is subject to a **5% daily loss limit** during both qualification and activated trading.

Monitor your exposure throughout the trading day and keep within the limit. The daily loss limit applies separately from the overall maximum loss: remaining above the overall loss floor does not prevent a daily loss breach.

### Maximum Loss: 20% Static

The maximum loss is **20% of your original starting PRP balance**.

For a **10,000 PRP account**, the maximum loss allowance is **2,000 PRP**, giving a fixed loss floor of **8,000 PRP**.

This limit is static. It does not trail your profits or move upward as your account grows.

| Starting Balance | Maximum Loss | Static Loss Floor |
| ---------------- | ------------ | ----------------- |
| 10,000 PRP       | 2,000 PRP    | **8,000 PRP**     |

The maximum loss limit applies during both qualification and activated trading.

### After Activation

There is **no further qualification profit target** on your activated account. Continue trading within the daily and maximum loss limits, and redeem eligible profits under the **Withdrawal Rules**.

The **2% minimum withdrawal** is a withdrawal requirement, separate from the initial qualification target.

### If You Breach a Loss Limit

A loss-limit breach ends the account’s eligibility to continue.