The daily drawdown limit for the UWM Competitions is based on the day's starting balance and is 5% of the value at 5PM EST.
For example, if you have a balance and equity of $200,000.00 at 5PM EST, your daily drawdown limit would be $10,000.00. Meaning that your account's equity would not be allowed to go below $190,000.00.
A simple way to calculate the daily drawdown is:
Starting Day's Balance X 0.05 = Drawdown Limit
Starting Day's Balance - (Starting Day's Balance X 0.05) = Drawdown Equity Limit
Note that exceeding the daily drawdown limit will result in the automatic disqualification of your account.