Daily loss limit for the Privileged Challenges is calculated as below:

Permitted Daily Allowed Loss = (day starting balance) * (allowed daily drawdown percent) / 100

For example:

You start a 100k challenge and open one trade and you are still holding that trade when the day rolls over with a floating profit of $1,500. Your drawdown will be based on your day starting balance ($100,000) even though your equity is higher ($101,500). Ex:  4% of 100,000 is 4,000. Your account cannot go below 100,000 – 4,000 = 96,000.

You start a 100k challenge and open one trade and close that trade before the day ends with a loss of $1,500. Your drawdown will be based on your updated balance 98,500. Ex:  4% of 98,500 is 3,940. Your account cannot go below 98,500 – 3,940 = $94,560$.