How a Prop Firm Challenge Works: Rules, Phases, Payouts

The fee is the most you can lose: you deposit no trading capital.

Two loss limits apply at once, and open losses count toward both.

Passing starts a review and verification; payouts follow a fixed schedule.

What you are buying

A challenge is an evaluation account that uses real market prices. You pay a one-time fee, you do not deposit trading capital, and MyFundedCapital is not a broker and does not accept deposits. What you buy is the chance to show that you can grow an account while respecting fixed risk limits.

MyFundedCapital runs five programs:

2-Step Challenge: two phases, with targets of 8% and then 5%.
1-Step Challenge: one phase with a 10% target.
Instant Funded: no evaluation. You start on a funded account with tighter limits.
MFC Stocks: one phase on US stocks and ETFs, with a 7% target.
Prediction Markets: one phase of YES or NO positions on event outcomes, with a 10% target.

On a $10,000 1-Step account the target is $1,000 of profit, and you need at least 3 trading days to reach it.

From purchase to payout

The rules that end an account

Every program 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 and 3% on Prediction Markets, measured from the previous day’s closing balance.
Maximum loss: 10% on the 1-Step and 2-Step, 6% on Instant Funded and Prediction Markets, 5% on MFC Stocks.

The check runs on equity, so a loss on a position that is still open counts. Touching a floor is a hard breach and ends the account. On a $10,000 1-Step account the daily floor on day one is $9,500 and the maximum floor starts at $9,000.

MFC Stocks works a little differently: its 2% daily limit pauses trading until the next session instead of ending the account. On every program you also need to place at least one trade every 30 days.

What happens when you pass

Passing is not automatic. When the target is reached, the account is reviewed, you verify your identity and sign the trader agreement in your MyFundedCapital Dashboard, and then the funded account is issued.

The funded account has no profit target, but the same loss limits stay in place. A 35% consistency rule now applies as well: no single day may make up more than 35% of your total profit. It does not apply while you are still in the Challenge evaluation.

If the next step does not appear after you reach the target, check your spam folder and the Dashboard first, then contact support with the account reference and the date you completed the phase.

How you get paid

Payout requests open on a schedule that starts with your first funded trade:

1-Step: first request after 7 days, then every 7 days.
2-Step: first request after 14 days, then every 14 days.
Instant Funded: first request 14 days after your first trade, then every 7 days.

The profit split starts at 80% on the 1-Step and 2-Step and can rise to 95% with a profit split add-on. On 1-Step and 2-Step accounts bought from 9 October 2026, the fee you paid comes back once with your first approved payout.

Free toolPayout date calculatorSee when your next payout request opens.

Quiz

Check yourself

0 / 4

1How many evaluation phases does the 2-Step Challenge have?

2Does Instant Funded have a profit target?

3What can you lose on a challenge?

4What still applies on a funded account?

MyFundedCapital School

Start here checklist

Rules as of 17 Oct 2026. Tick each line before your next session.

Rule	1-Step Challenge	2-Step Challenge	Instant Funded	MFC Stocks	Prediction Markets
Profit target	10%	8% + 5%	—	7%	10%
Daily loss limit	5%	5%	3%	2% daily pause	3%
Maximum loss	10% · trailing	10% · static	6% · trailing	5% · trailing	6% · trailing
Consistency	35%	35%	35%	35%	35%
First payout	after 7 days	after 14 days	after 14 days	after 14 days	after 7 days
Then every	7 days	14 days	7 days	14 days	7 days
Profit split	80% → 95%	80% → 95%	70% → 80%	70% → 80%	75% → 90%

1. How does a prop firm challenge work?

The fee is the most you can lose: you deposit no trading capital.
Two loss limits apply at once, and open losses count toward both.
Passing starts a review and verification; payouts follow a fixed schedule.

2. What is the difference between a prop firm account and a broker account?

A broker holds your deposit; a prop firm sells access to an account for a fee.
At a prop firm the fee caps your loss, but the rules decide how long the account lives.
A withdrawal is your money; a payout is your share of eligible profit.

3. Which funded account program fits you?

Your market narrows the choice before any rule does.
Lower entry price usually means more phases; no phases means tighter limits.
Compare the daily limit in dollars, not the headline account size.

4. How do you choose a funded account size?

Rules are percentages, so a bigger account is not easier, only larger.
Pick the size where 0.5% risk in dollars feels routine to you.
Small accounts meet payout minimums later; large ones meet the cap sooner.

5. What do prop trading terms like drawdown and equity mean?

Balance counts closed trades; equity adds open profit and loss.
Limits are checked on equity, so open losses can end an account.
Lots and pips turn a risk in dollars into an order size.

myfundedcapital.com/learn/

Questions

Is there a time limit to pass?

The 1-Step and 2-Step Challenges have no time limit, so you can trade at your own pace. Prediction Markets has its own evaluation time limit; check its rules before you buy.

Can I lose more than the fee?

No. You do not deposit trading capital, so a breach ends the account and the fee is what you lose. A new attempt means a new fee.