How does a prop firm challenge work?

What you are buying

A challenge is an evaluation on a simulated account that uses real market prices. You do not deposit trading capital and you cannot lose more than the fee. What you buy is the chance to prove that you can grow an account while respecting risk limits.

MFC runs three routes. The 2-Step Challenge has two phases with targets of 8% and 5%. The 1-Step Challenge has a single 10% target. Instant Funded skips the evaluation and starts you on a funded account straight away, with tighter limits.

The rules that end an account

Every route has two loss limits that apply at the same time:

• Daily loss limit: 5% on the 1-Step and 2-Step, 3% on Instant Funded, measured from the previous day’s closing balance.
• Maximum loss: 10% on the Challenges, 6% on Instant Funded.

Touching either floor ends the account, even if the loss comes from a position that is still open. The next two lessons show exactly how each floor is calculated.

What happens when you pass

Passing is not automatic. After the target is reached the account is reviewed, you verify your identity and sign the trader agreement, and then the funded account is issued. On the funded account there is no profit target, but the same loss limits stay in place and a 15% consistency rule applies: no single day may make more than 15% of your total profit.

How you get paid

Your first payout request opens 7 days after your first funded trade on the 1-Step and 14 days after it on the 2-Step. The profit split starts at 80% and can rise to 100% through add-ons or, on the 2-Step, through the Scaling Plan.