How are Daily and Overall Drawdown limits calculated in Superior Lite Challenge?

Maximum Daily Drawdown:

The maximum Daily Drawdown Limit for Superior Lite Challenge is 4%. Please note that it is fixed to the initial balance and does not trail with Balance and/or Equity.

Example 1:

If you have a 100k Superior Lite Challenge account, your Daily drawdown will be fixed to $4000.

Day 1: Start of the day simulated Balance/Equity: $100,000
Allowed Daily Drawdown: $4,000 i.e. the stop-out limit becomes $96,000

Day 2: Start of the day simulated Balance/Equity: $106,000
Allowed Daily Drawdown: $4,000 i.e. the stop-out limit becomes $102,000

Example 2:

Day 1: End of the day simulated Balance is $105,000 and end of the day simulated Equity is $103,000.
The daily Drawdown limit is $4,000 which makes it $101,000 i.e., a further $2,000 loss in Equity would breach the Daily Drawdown Limit.

Overall Drawdown:

The Overall Drawdown Limit for Superior Lite Challenge is 8%. It always remains fixed to the Initial Balance.

For example:

If you have a 100k Superior Lite Challenge, your Overall Drawdown will always be 8% of $100,000 i.e. the Overall stop-out limit becomes $92,000

Start of Day 1: Start of the day simulated Balance/Equity: $100,000
Allowed Overall Drawdown: 8% of $100,000 = $8,000 i.e., the stop-out limit becomes $92,000

Day 2: Start of the day simulated Balance/Equity: $101,000
Allowed Overall Drawdown remains: 8% of $100,000 = $8,000 i.e., the stop-out limit stays at $92,000