There are exactly two ways to fail a MarginPlant account, and both are loss limits. Confusing them is how good traders get knocked out on a technicality, so let's make them concrete.
The daily loss limit ([5%]) is measured from your balance at the start of the trading day and includes open positions. On a $100,000 account that's $5,000 below where you opened the day. It resets every day. The overall loss limit ([10%]) is measured from your original starting balance and never resets — on that same account, your equity can never touch $90,000, full stop, no matter how many good days you've had.
Here's the trap: you can be up $8,000 overall and still fail the daily limit if you give back $5,000 in one bad session. And you can have a great week, then a single catastrophic trade pushes you through the overall floor. Treat the daily limit as your discipline coach and the overall limit as your survival line. Plan every position so that even your worst-case stop can't put either at risk in a single trade.
Risk warning: trading involves substantial risk of loss. This is education, not advice.