If You Fail Phase 1
If you don’t meet the profit target or breach the drawdown limits in Phase 1, your evaluation will be closed and your challenge considered failed. However, you will only lose the $5 broker fee you paid to start — nothing more.
There are no hidden fees, and you won’t owe anything further.
If You Fail Phase 2
If you pass Phase 1 and proceed to Phase 2 (after paying another $5 broker fee), but fail to meet the trading objectives or breach the risk limits, you will also lose the account. However, just like Phase 1, you will not be required to pay the full challenge fee. You’ll only lose the initial $10 total in broker/setup fees.
Summary
You only risk $5 (or $10 if you reach Phase 2)
No full challenge fee is due unless you pass
If you fail, you do not owe anything more
The account is closed with no penalties or consequences
This model is designed to reward performance — not penalise mistakes.