Prop Firm Challenge Fee Refund: When You Get Your Fee Back
A refundable challenge fee usually comes back with your first payout, not when you pass. Here is how it works, with a $100K example.
OctoFunded Trading DeskUpdated ยท 7 min read
A prop firm challenge fee refund is the return of the one-time fee you paid for an evaluation, usually added to your first payout on the funded account. You get it back only when the account reaches that payout under the program rules. Passing the challenge on its own does not trigger it.
The word "refundable" on a pricing page hides a lot of detail. This guide covers the common refund models, how the refund lands on a $100K simulated account and what to check before you count on it.
Key takeaways
- The refund travels with a payout: at most firms that offer one, the fee comes back with a payout on the funded account, not on the day you pass.
- Not every program refunds: at OctoFunded, the 1-Step and 2-Step refund the fee with the first payout. Instant Funded has no fee refund.
- The trigger matters more than the headline: some firms refund with the first payout, some after several payouts, some never. Read which one applies.
- A failed account has no refund path: if the account breaks a rule before its first payout, there is nothing for the refund to be added to.
- Do not trade for the refund: your risk per trade should come from the loss limits, not from how soon you want the fee back.
What is a prop firm challenge fee refund?
A challenge fee refund is the firm returning the fee you paid for an evaluation once you meet a condition, most often a first payout on the funded account.
The logic is simple. You pay a one-time fee to be evaluated on simulated capital. If you pass and then trade the funded account well enough to reach a payout under the rules, the cost of the evaluation comes back with it.
A fee refund is not the same as a cancellation refund. Many firms also have a separate policy for accounts that were bought but never used. That policy has its own conditions and lives in the terms, not in the program rules.
When do you get your challenge fee back?
You usually get your challenge fee back with your first payout from the funded account, once that payout is approved under the program rules.
At OctoFunded, the path on the 1-Step and 2-Step looks like this:
- Pay the one-time fee and start the challenge on a simulated account.
- Pass the evaluation. The 1-Step has one phase with a 10% target. The 2-Step has two phases, with a 10% target and then a 5% target.
- Trade the funded account under its rules, on simulated capital.
- Request a payout. Payouts run on a 14-day cycle with an 80% profit split from the first payout, subject to the program rules.
- Receive the fee refund with that first payout.
Across the industry, refund policies tend to fall into a few models. These are general descriptions of what some firms do, not a ranking.
| Refund model | When the fee comes back | What has to happen first |
|---|---|---|
| With the first payout | Together with the first approved payout | Pass the challenge and reach a first payout |
| After several payouts | With a later payout, after a set number of cycles | Several approved payouts in a row |
| On passing | When the evaluation is passed | Pass every phase |
| No refund | Never | Nothing, the fee is the cost of the program |
Here is how it maps to the three OctoFunded programs:
| Program | Evaluation | Fee refund |
|---|---|---|
| 2-Step | 2 phases (10% target, then 5%) | With the first payout |
| 1-Step | 1 phase (10% target) | With the first payout |
| Instant Funded | No evaluation phase | None |
Check the OctoFunded program rules for the full conditions on each program.
How does the fee refund work on a $100K account?
The fee refund is added on top of your share of the first payout, so it only shows up once the funded account has produced a payout under the rules.
Take a 1-Step challenge on a $100K simulated account. The profit target is 10%, or $10,000. The daily loss limit is 4%, or $4,000, and the trailing max drawdown is 8%, so the floor starts at $92,000. The profit figures below are illustrative, not a forecast.
| Stage | Simulated profit ($) | Paid to you ($) |
|---|---|---|
| Challenge, single phase | +$10,000 (10% target reached) | $0, the evaluation is passed |
| Funded, first 14-day cycle | +$5,000 | $4,000 (80% split) plus the fee refund |
| Funded, second 14-day cycle | +$3,000 | $2,400 (80% split) |
Here is the arithmetic, step by step:
- First payout: 80% of $5,000 is $4,000. The fee refund is added to that first payout, so you receive $4,000 plus the challenge fee you paid.
- Second payout: 80% of $3,000 is $2,400. The fee has already come back, so this payout is the split only.
- If the account fails in the first cycle: say a bad session breaks the $4,000 daily loss limit before the first payout. There is no payout, so there is no refund to add to one.
Now run the same profits on Instant Funded. The first payout would be 80% of $5,000, or $4,000, with no fee added, because Instant has no fee refund. You skip the evaluation, and in exchange the fee stays a cost.
OctoFunded payouts go out in USDT or USDC on-chain, with a public transaction hash. You can check the transaction hash yourself on a block explorer.
Does a fee refund change which program you should pick?
A fee refund can tip a close decision, but it should come after the rules, because it only matters if you reach a payout.
Start with the limits your bad days have to fit inside:
- 2-Step: a 5% daily loss limit and a 10% static drawdown, over two phases, with the fee refunded with the first payout.
- 1-Step: one phase, a 4% daily loss limit, an 8% trailing drawdown and a 50% best day rule, with the fee refunded with the first payout.
- Instant Funded: no evaluation phase, a 3% daily loss limit, a 6% trailing drawdown and a 20% best day rule, with no fee refund.
If you are unsure which set fits how you trade, compare the 2-Step, 1-Step and Instant Funded rules side by side first.
A useful way to think about it: treat the fee as the cost of the attempt. The refund is a possible rebate later, not part of the plan. If the numbers only work when you count the refund, the plan is too tight.
How do you check a firm's fee refund policy?
Read the refund wording before you buy, and look for the trigger, the scope and the exceptions.
- Find the trigger. Is the fee returned with the first payout, after several payouts, on passing, or never?
- Check which programs qualify. Many firms refund on some programs and not others. At OctoFunded, Instant Funded has no fee refund.
- Look for extra conditions. Some firms attach further conditions to the refund. Read the program rules for anything beyond the payout itself.
- Check resets and retries. Some firms treat the fee of a reset or a retry differently from the original fee. Read how yours handles it.
- Ask how it is paid. Find out whether the refund arrives with the payout and on which payment rail.
- Keep your own record. Save the order, the account number and the date you passed, so you can match the refund when it arrives.
- Keep your sizing honest. The refund changes nothing about the daily loss limit. There is also no time limit at OctoFunded, so there is no reason to force a payout early.
FAQ
Do I get my fee back as soon as I pass the challenge?
Not at OctoFunded. On the 1-Step and 2-Step, the fee is refunded with your first payout on the funded account, subject to the program rules. Passing the evaluation is a step on the way, not the trigger.
Is the Instant Funded fee refundable?
No. Instant Funded has no fee refund. You skip the evaluation, and the fee is the cost of the program.
What happens to the fee if I fail the challenge?
If the account fails before it reaches a first payout, there is no payout for the refund to come with, so the fee is not returned through this route.
Is a fee refund the same as a cancellation refund?
No. A fee refund is tied to a payout on the funded account. A cancellation refund is a separate policy about accounts you decide not to use, and it has its own terms.
How much is the fee refund?
It returns the challenge fee for that account. We do not quote fees in the Journal because they can change, so check the current fee for each program and size in the pricing section.
Pick a program with the refund in mind
Choose the rules first, then weigh the refund. At OctoFunded, the 1-Step and 2-Step refund the one-time fee with the first payout, Instant Funded does not, and all three run on simulated capital with no time limit.
