Liquidation is not the same as drawdown

Liquidation is a platform-level event. It can happen when a leveraged position no longer has enough margin to support it, causing the venue to close some or all of the position.

Drawdown is an account-level rule. A prop firm may fail an evaluation when your equity or balance crosses its daily-loss or maximum-drawdown threshold, even if no platform liquidation occurred.

A position can therefore be too large for both systems at once. Leave room for fast price movement, fees, funding, and the firm’s exact equity calculation instead of trading to the published maximum.