> ## Documentation Index > Fetch the complete documentation index at: https://support.polyfundr.com/llms.txt > Use this file to discover all available pages before exploring further. # Challenge Rules > Every rule that governs your challenge account: profit target, consistency, daily drawdown, total drawdown, max risk per trade, and inactivity. Use this page as the source of truth for challenge rules. It covers how you pass, what fails the account, and which risk rules continue after you get funded. ## Quick summary Equity reaches +30% and your profit is consistent (no single trading day is more than 30% of your total profit). You breach daily drawdown, total drawdown, max risk per trade, or inactivity. ## Challenge vs funded | | Challenge | Funded account | | :---------------------------- | :--------------------------------------------------- | :---------------------------------- | | Main goal | Pass the challenge | Become payout-eligible | | What counts toward the target | Equity | Realized profit | | Target size | 30% of starting balance | 30% of starting balance | | Open positions | Count in equity | Do not count until closed | | Consistency | No single day over 30% of total profit | 40% per payout window, every payout | | Core risk rules | 10% daily, 20% total, 5% max risk, 14-day inactivity | Same risk rules | | Payouts | Not available | 90% split, progressive payout caps | ## You pass when You pass the challenge the moment both of these are true at the same time. | Condition | Requirement | | :---------------- | :----------------------------------------------------------------------------------------- | | **Profit target** | Your account equity reaches **+30%** above your starting balance | | **Consistency** | No single trading day's realized profit is more than **30%** of your total realized profit | Realized profit is grouped by UTC calendar day. The consistency rule means your biggest single day cannot dominate your result, so in practice you need profit spread across **at least four profitable trading days**. Consistency is a gate, not a breach. It never fails or closes your account. It only delays the pass until your profit is spread out. If one big day is more than 30% of your total, keep trading across more days to bring that share down, then the challenge passes once the +30% target is also met. ## Your account fails when Any one of these conditions ends the challenge immediately. | Condition | Limit | Measured from | | :--------------------- | :------------------------------------------ | :--------------------------------- | | **Max daily drawdown** | **10%** drop from the day's starting equity | UTC-day equity snapshot | | **Max total drawdown** | **20%** drop from your all-time peak equity | Trailing high-water mark | | **Max risk per trade** | **5%** of your starting balance per trade | Before every new trade | | **Max inactivity** | **14 days** without a qualifying trade | Challenge activation or last trade | ### Max daily drawdown At the start of each UTC day, the platform snapshots your account equity. If your equity falls more than 10% below that snapshot at any point during the day, the account fails. **Example:** You start a UTC day with \$52,000 in equity. Your daily floor is \$52,000 x 0.90 = \$46,800. If your equity drops to \$46,799 at any point that day, the challenge ends. Daily drawdown diagram The daily drawdown resets each UTC day using a fresh equity snapshot. A large gain on one day raises the floor for the next day. ### Max total drawdown (trailing) The platform tracks your highest-ever equity. If your equity falls more than **20% below that all-time peak**, the account fails. The high-water mark only moves up. Once you reach a new peak, the floor rises with it and does not move back down. **Example:** Your starting balance is \$50,000 and your equity peaks at \$58,000. Your total drawdown floor is \$58,000 x 0.80 = \$46,400. If your equity falls to \$46,399, the challenge ends. Trailing drawdown diagram Drawdown calculations are adjusted for any payouts already made. Withdrawing profits on a funded account does not move you closer to a breach. ### Max risk per trade Before every trade, the platform calculates your worst-case loss across all open positions on the same market plus the new trade you are about to place. If that combined worst-case loss exceeds 5% of your starting balance, the trade is blocked. **Example:** On a \$50,000 challenge, 5% is \$2,500. If you already have \$1,800 at risk on a market and try to add a trade that risks another \$900 on the same market, the total would be \$2,700. The trade is blocked. The 5% limit is calculated from your **starting balance**, not your current equity. It does not change as your account grows or shrinks. ### Max inactivity If 14 or more days pass without a qualifying trade (\$1+ notional), the account fails. The clock starts at challenge activation and resets with every qualifying trade you place. ## What carries over to funded accounts After you pass, your funded account keeps these risk rules: * 10% max daily drawdown * 20% max total drawdown * 5% max risk per trade * 14-day max inactivity Funded payout eligibility is explained on [Funded payouts](/funded/payouts). A consistency rule also applies to **every funded payout window** (no single trading day over 40% of the eligible profit in that window). It uses the same "no single lucky day" idea as the challenge, with more room. A trader who earns steadily across a few days clears it without having to think about it. ## What is allowed * Trade any market available on PolyFundr using live Polymarket prices. * Hold positions for as long as you like, provided you stay within the rules. * Trade on news events, weekends, or any time of day. * No restrictions on holding periods or market categories. ## Fair use & bad faith The rules above are limits, not the full list of what is permitted. All challenge and funded trading is also governed by the [Fair Use Policy](/policies/fair-use). Exploiting bugs, latency, pricing errors, or processing delays, masking identity, location, or account control, or any trading that is abusive or contrary to the spirit of a skill-based evaluation, can void the affected trades and profit, close the account, and forfeit pending or paid payouts, with no refund. Found a bug? Report it to support instead of trading on it.