A daily loss limit is the maximum your account may fall within a single trading day before the account is closed. It is the rule most traders breach first, usually because they are measuring it differently from the way the program does.
Two details decide everything. The first is what the limit is measured against: on the Vexorfund one-phase program it is measured on equity, based on the prior day's balance. Equity includes open positions, so a trade that is 3% underwater counts against your daily limit right now, not when you close it. A trader who sits on a losing position waiting for it to recover can breach the limit without ever taking the loss.
The second is when the day resets. A new day gives you a fresh allowance, calculated from the balance you ended the previous day with. If you finished yesterday down, your allowance today is calculated from that lower number, not from your original starting balance.
The practical version: work out your allowance in currency before you place the first trade of the day, subtract what you have already given back, and size the next position against what is left rather than against your full account. On a $100,000 account with a 4% daily limit, that is $4,000 for the day. Two trades risking $1,000 each leave $2,000, not $4,000.
Programs differ. Three-phase has no daily loss limit at all, which is why it suits traders whose results are uneven day to day. The crypto plan uses a ±3% daily cap. Check the rule for the program you are actually in.
General information about trading rules and process. Not financial advice, and not a statement about what any trader will earn. All Vexorfund accounts are simulated and rewards are subject to the program rules and account review.