Pass a 10K Prop Firm Challenge: The Path Behind Sebastian M.'s $125 Payout

To pass a 10K prop firm challenge on the OctoFunded 2-Step, you need to make $1,000 in Phase 1 and $500 in Phase 2 without ever losing $500 in a day or letting the account fall below $9,000. Sebastian M. did exactly that, reached a funded account and received a verified $125 payout, issued on 4 November 2026. This is the Trading Desk's walk through the path that payout had to travel, stage by stage, with the real numbers for a $10,000 account.

We want to be precise about what we know. The public certificate at app.octofunded.com/verify/3af5b926-8577-514a-b67c-003c9415ccda confirms four things: the name Sebastian M., the amount $125, the account type 2-Step $10,000, and the issue date. We do not know which instruments he traded, how many days he took, or how he felt along the way, and we will not pretend to. What we can do is show you every gate that a $10,000 2-Step account must pass before a certificate like his can exist.

The 10K 2-Step rules in dollars

Percentages are simple to read and simple to misjudge. Here is every rule on the $10,000 2-Step converted into the dollar amounts the account actually tracks.

Because the drawdown is static, the $9,000 floor does not move up as the account grows. That matters on a small account: every dollar of profit you build is extra distance from the floor. For a broader comparison of how this structure differs from trailing models, see our guide to the two-step prop firm challenge.

Stage 1: buying the challenge

Every certificate starts at checkout. The $10,000 2-Step lists at $79, and the public OFF10 code brings it to $71.10. It is the smallest 2-Step size and the lowest entry cost in the program.

Two details make this size worth understanding before you buy. First, the fee is refunded with the first payout on the 2-Step, which we cover in our fee refund article. Second, there is no time limit, so the clock is not part of the risk. The only things that end an account are the two loss rules.

Stage 2: Phase 1, the $1,000 target

Phase 1 asks for 10% of the starting balance, which on this size is $1,000, over at least 3 trading days. That is the largest single gate on the path. It is also the stage where most of the risk sits, because the target is twice the size of the daily loss limit.

Think about the ratio. The target is $1,000. The daily limit is $500. The total loss limit is $1,000. In other words, the account allows you to lose in total exactly what it asks you to make in Phase 1. A trader who sizes positions so that one bad session can cost $500 has used half of the total room in a single day.

The useful planning question for Phase 1 is not "how fast", it is "how much can I lose today before I stop". Our daily loss limit guide explains how that limit is measured, and how to pass a prop firm challenge covers position sizing for evaluations in more depth.

Stage 3: Phase 2, the $500 confirmation

Once Phase 1 is passed, Phase 2 asks for half the target: 5%, or $500, again over a minimum of 3 trading days. The loss limits stay the same, $500 per day and $1,000 in total.

This changes the ratio. In Phase 2, the target equals the daily limit and is half the total loss room. The phase is shorter in dollar terms, but the rules are just as strict, so the same discipline that passed Phase 1 has to repeat. The minimum path through both phases is 6 trading days in total, but there is no requirement to finish in 6, and no penalty for taking longer. We do not know how long Sebastian M. took, and the certificate does not say.

For the full program breakdown, including how Phase 2 compares with other sizes, read our OctoFunded 2-Step challenge review.

Stage 4: the funded account

Passing Phase 2 leads to a funded account on the same $10,000 simulated balance. The loss rules carry over unchanged: $500 maximum daily loss and a static $9,000 floor. What changes is that there is no longer a profit target. Profit now becomes payable, with 80% going to the trader.

The first payout window opens 14 days after funded activation, and payouts are available every 7 days after that. KYC is required before the first payout is processed. This 14 day wait is the part of the path that new traders most often forget to plan for: the account has to survive two weeks of funded trading, inside the same limits, before the first request is even possible. Our 10k funded account page covers the funded stage at this size in more detail.

Stage 5: the payout request

Here is where the real math of Sebastian M.'s certificate becomes visible. With an 80% split, the trader receives 80 cents of each simulated dollar of profit. Working backwards:

• Trader share on the certificate: $125
• Implied gross simulated profit: $125 / 0.8 = $156.25
• As a percentage of the $10,000 balance: 1.56%
• OctoFunded share of that profit: $31.25

That is a modest number, and that is the point. A 1.56% gross gain on a funded account is well above the $50 minimum payout, well below the $500 daily loss limit, and far away from the $9,000 floor. It shows that a payout does not need to be large to be real. For how this compares with bigger sizes, see prop firm payout examples and the general mechanics in how prop firm payouts work.

The certificate does not show whether Sebastian M. withdrew all of his profit share or only part of it, or how the fee refund was paid alongside it. That is why we call the math implied.

Stage 6: the certificate

The final stage is public proof. Each OctoFunded payout gets a certificate page that anyone can open. You can check Sebastian M.'s directly at app.octofunded.com/verify/3af5b926-8577-514a-b67c-003c9415ccda, and you can look up any certificate ID on the OctoFunded verify page.

Where Sebastian M. sits among the 9 verified certificates

Sebastian M.'s payout is the smallest of the nine currently verified 2-Step certificates, and it is the only one from a $10,000 account. Every one of these was issued on 4 November 2026.

Measured against account size, the picture shifts. Sebastian M.'s $125 is 1.25% of his $10,000 balance as trader share. Ethan C.'s $315 on a $50,000 account is 0.63%. A larger dollar payout is not automatically a larger percentage result, which is why we always read certificates relative to size. The other stories in this series follow the same path at different sizes: Oliver B.'s 25k funded account payout, Ethan C.'s 50k funded account first payout, the 100k funded account payout and the 200k funded account payout.

What the 10K path teaches about the whole process

Three lessons come straight from the $10,000 math, without needing to know anything about Sebastian M.'s trades.

The loss rules decide the path, not the targets. The $500 daily limit and the $9,000 floor are the same in all three stages. Passing the challenge is really a test of whether you can keep those two numbers intact for long enough to reach $1,000, then $500, then a funded profit. We go deeper on this in pass the 2-Step challenge: a payout story and from challenge to funded account.

The funded stage has its own clock. The 14 days between funded activation and the first payout are not optional. Planning only for Phase 1 and Phase 2 leaves the trader unprepared for the stage that actually pays.

The split shapes the number you see. Every certificate shows the trader share. To understand the trading result behind it, divide by 0.8. Our article on the funded account profit split payout walks through that conversion for every size, and the four-figure prop firm payout shows the same math at the top of the certificate table. For the experience of a first withdrawal in narrative form, see the first payout journey.

Following the proof

We publish payouts as they are verified. The Payout Proof video on YouTube @OctoFunded shows how to open a certificate and check it yourself, and the channel also covers daily loss and the differences between 1-Step, 2-Step and Instant. New certificates are posted on X @octofunded. Questions about the rules get answered in the Telegram community. Short explainers appear on Instagram, and market ideas from the desk are shared on TradingView.

If you want to check Sebastian M.'s payout one more time before deciding anything, the certificate is here: verify the $125 2-Step $10,000 payout.

FAQ

How much profit do you need to pass a 10K prop firm challenge?

On the OctoFunded 2-Step $10,000, Phase 1 needs a 10% target ($1,000) and Phase 2 needs a 5% target ($500), each with a minimum of 3 trading days. There is no time limit on either phase.

What are the loss limits on a 10K 2-Step account?

The maximum daily loss is 5% ($500) and the maximum loss is 10% static ($1,000), which puts the account floor at $9,000. The same limits apply in Phase 1, Phase 2 and the funded stage.

How much gross profit was behind Sebastian M.'s $125 payout?

With an 80% profit split, a $125 trader share implies $156.25 of gross simulated profit, which is about 1.56% of the $10,000 balance. The certificate shows the payout amount, not his individual trades.

When can you request the first payout on a 10K funded account?

The first payout on the OctoFunded 2-Step is available 14 days after funded activation, then every 7 days. The minimum payout is $50 and KYC is required.

Is the challenge fee refunded on the 10K 2-Step?

Yes. The 2-Step fee is refunded with the first payout. The list price is $79, or $71.10 with the OFF10 code.

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Risk Disclosure: Trading involves substantial risk of loss. This article describes a real verified payout, but past payouts do not predict future results, and most of the trading details here are program rules or labelled illustrative examples, not this trader's actual activity. You may lose your entire account fee. OctoFunded provides simulated capital; you trade a demo environment, not live markets. Nothing in this article is investment advice. Read the full Risk Disclosure before trading.

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