What happens to a trader's challenge fee when they fail?
Quick answer
In most prop firms the fee is not refunded when a trader breaches a rule. The fee paid for the evaluation itself. Some firms offer a discounted reset, and a few refund the fee with the first payout, but only to traders who pass. Your terms should state the policy plainly.
Detailed answer
Typical policies:
- No refund on breach. The standard position, because the trader received the evaluation.
- Discounted reset. A new attempt at a lower price.
- Refund with first payout. Only for traders who pass and get paid.
- Refund for technical failures. If the platform failed, firms usually reinstate or refund.
Disputes around breaches usually focus on whether the rule was actually broken. Precise rules and clear evidence prevent most of them. PropExecutor records when and why an account breached, including the rule that ended it, and the trader saw their live headroom against each limit in the terminal before it happened.
Communicating it well
State the policy at checkout, on the rules page and in the welcome email. Pair it with a reset offer, so a breached trader has a clear, fair next step rather than only a lost fee.
Keeping the reset price and availability consistent for everyone matters as much as the policy itself.
PropExecutor team · Updated
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