Terms and Condition - PAP
Account Breaches & Risk Management
Maintaining strong risk management is essential throughout both the evaluation and funded stages.
A hard breach occurs if you exceed either the Maximum Daily Loss or Maximum Overall Loss. In such cases, the account is closed automatically, regardless of your stage in the program.
Reset options are available for up to 72 hours after a breach, giving you a chance to restart the process if needed.
Maximum Trailing Drawdown (MTD)
Represents a balance-based risk limit used within trading challenges. In the prop trading industry, this concept is also referred to as “Max Relative Drawdown”.
How does the Trailing Drawdown work?
MTD is set at 8% of the Initial Account Balance, calculated based on the highest account balance achieved.
As the account reaches new highs, the drawdown limit automatically adjusts upward (“trailing”).
It is calculated based on account balance, not equity, meaning that open trades do not affect the limit until they are closed.
How is the Maximum Trailing Drawdown calculated?
MTD = Initial Balance × 8%
Stop Out Level (SOL) = (Highest Account Balance – Last Withdrawal) – MTD
Example 1: Without Withdrawal
Initial Balance: 100,000 USD
Initial MTD: 8% × 100,000 = 8,000 USD
Initial Stop Out Level: 100,000 – 8,000 = 92,000 USD
If the balance increases to 104,000 USD:
New Stop Out Level = (104,000 – 0) – 8,000 = 96,000 USD
If the balance (including floating losses) drops to 96,000 USD or below, the account is considered in breach.
Example 2: With Withdrawal
Initial Balance: 100,000 USD
Initial MTD: 8,000 USD
Initial Stop Out Level: 92,000 USD
Last Withdrawal: 3,000 USD
If the balance increases to 104,000 USD and a withdrawal of 3,000 USD is made:
New Stop Out Level = (104,000 – 3,000) – 8,000 = 93,000 USD
If the balance drops to 93,000 USD or below, the account is considered in breach
Max Daily Loss
The Maximum Daily Loss is calculated based on the highest equity or balance from the previous trading day — whichever is greater. This limit resets daily at 5:00 PM EST, helping traders maintain control over risk from one trading day to the next.
How It Works — Examples
Example 1: Higher Equity Sets the Limit Account Size: $100,000 Monday’s Highest Equity: $108,000 Max Daily Loss (4%): $4,320 Tuesday Breach Level: $103,680
On Tuesday, if your equity or balance drops below $103,680 at any moment — including floating losses — your account will be breached.
Example 2: Balance-Based Daily Limit Account Size: $100,000 Wednesday’s Highest Balance: $100,500 Max Daily Loss (4%): $4,020 Thursday Breach Level: $96,480
On Thursday, your account cannot fall below $96,480 at any time. The rule applies to both closed and floating losses.
Rewards & Profit Split
To request your payout, you must complete a minimum of a minimum trading days during the funded stage, within a calendar month depending on your account type:
- 2-Step Accounts: Minimum of 10 trading days, with at least 0.5% profit per day
- 1-Step accounts: a minimum of 1 trading day , with at least 0.75% profit per day .
Profit Split: Traders receive 80% of profits by default, with no hidden fees or deductions.
Payout Schedule: The frequency of payouts :
- Monthly – first payout after 30 days since first trade
- Bi-weekly – second payout after each 15 days
Funded Account — Consistency Rule
To qualify for a payout, your best trading day must not account for more than 20% of your total profits at the time of withdrawal.
How It’s Calculated
Consistency Score (%) = (Best Day Profit / Total Profit) × 100
Example
Let’s say your total profit is $5,000.
Your highest single-day profit should not exceed $1,000 (which is 20% of $5,000).
Why This Rule Exists
This rule promotes steady, consistent performance rather than relying on a few large, high-risk trades. It’s designed to reward disciplined, professional trading — the kind of behavior that leads to long-term profitability and stability.
Frequently Asked Questions
When do I pay the full fee?
Only after you successfully pass both evaluation phases.
Can I reset my account at any time?
No. Resets are available only after a breach and must be purchased within 72 hours.
Are Expert Advisors (EAs) allowed?
Is there a difference in leverage between phases?
No. All Funding Dynasty Pay After You Pass accounts use the same leverage model throughout.
How long do I have to complete the evaluation?
What are the profit targets for Pay After You Pass accounts?
- 2-Step Access: 6% in Phase 1 and 3% in Phase 2
- 1-Step Access: 6% in a single phase
Profit targets must be met without breaching the account.
Do I get a refund of the entry fee after passing?
No. The entry fee is non-refundable, but it gives you access to the evaluation. You will only be charged the full fee after passing both steps.
Can I scale my funded account later?
Yes. Traders with consistent performance may be eligible for account scaling, depending on trading history and risk management. Further details will be shared once funded.
Can I hold trades overnight or over the weekend?
Yes. Swing trading and holding positions overnight is allowed, unless otherwise stated in your specific account’s terms.
What’s the leverage on Pay After You Pass accounts?
Standard leverage is 1:100 for most instruments. Specific pairs or assets may have adjusted leverage based on risk.
Can I trade news events or use high-frequency strategies?
No, news trading is not allowed 5 minutes before and after the news . Toxic flow or latency arbitrage strategies are prohibited and may lead to disqualification.
Is there a period of inactivity?
Yes. The inactivity period during which at least one trade must be opened is 30 calendar days.
