What is a refundable challenge fee, and should I offer one?

How it works in practice:

• The trader pays the normal fee.
• If they pass and receive a first payout, the fee is added to that payout.
• If they fail, nothing is refunded.

Effects on your economics:

• Each successful trader costs you their fee in addition to their profit share.
• The refund is paid only to traders who already cost you a payout, so it increases cost exactly where your margin is thinnest.
• It can lift conversion because the offer reads as low risk.

Model it as part of payout cost, not marketing. Your terms should state exactly when the refund is paid. This is a payment policy you handle outside the trading platform; PropExecutor does not process trader payments or refunds.

Worked example

A $300 refundable fee on a funded trader receiving a first payout of $2,000 makes that payout $2,300. If 10% of buyers reach a payout, the refund adds $30 to the expected cost of each sale, which pricing should cover.