5.1 Structure. The Company utilizes a single-step Evaluation. To pass, the User must achieve the applicable Profit Target without breaching the Maximum Loss Limit or Maximum Daily Loss Limit. A pass is confirmed by a review of up to twelve (12) hours. Upon confirmation of the pass, completing KYC verification, and signing the funded trader agreement, the User is granted a Funded Account.
5.2 Maximum Loss Limit (Max Drawdown).
(a) The Maximum Loss Limit is a static, equity-based floor calculated once from the starting balance (account size purchased). It does not trail upward with profits.
(b) A momentary touch of the floor - including unrealized profit or loss on open positions - constitutes a permanent Breach.
(c) The applicable percentages are as follows:
| Track | Max Drawdown |
|---|
| Beginner / Free (Demo - not payout-eligible) | 8% |
| Pro | 6% |
| Degen | 4% |
5.3 Maximum Daily Loss Limit.
(a) The Maximum Daily Loss Limit applies to Evaluation and Funded Simulation accounts only. It does not apply to Live Accounts.
(b) The daily loss allowance is a fixed dollar amount derived from the starting balance. The daily floor is calculated as: Start-of-Day Balance minus (Daily Loss Percentage × Starting Balance). Unrealized profit or loss on positions open at the reset does not raise or lower the daily floor. It resets daily at 00:30 UTC. When a trading withdrawal is requested, including Profit applied to an Evaluation purchase under Section 9.12, the daily floor for that trading day is lowered by the amount debited, but never below the account balance after the debit minus the daily loss allowance. Profit realized earlier that trading day and then withdrawn therefore no longer adds to the daily loss allowance. If the request is rejected on the same trading day, that adjustment is reversed.
(c) The applicable percentages are as follows:
| Track | Daily Loss Limit |
|---|
| Beginner / Free (Demo - not payout-eligible) | 4% |
| Pro | 3% |
| Degen | 2% |
5.4 Profit Targets.
(a) The Profit Target is measured against the starting balance using realized (closed) balance. The Evaluation becomes eligible to pass once the User's closed balance meets or exceeds the target while the account is flat, that is, with no open positions and no pending orders. Unrealized profit on open positions does not pass the Evaluation, and the Company never force-closes positions to trigger a pass. A pass is then confirmed by a review of up to twelve (12) hours before the funded trader agreement is issued.
(b) Profit realized around scheduled economic releases counts toward the Profit Target like any other profit (Section 6.5).
(c) The applicable percentages are as follows:
| Track | Profit Target |
|---|
| Beginner | 10% |
| Pro | 11% |
| Degen | 9% |
| Free (Demo - not payout-eligible) | 10% |
(d) Funded Accounts have no Profit Target.
(e) Existing Accounts. New Beginner evaluations have a 10% profit target, and new Pro evaluations have an 11% profit target. New Degen evaluations have a 9% profit target, and new custom evaluations have a profit target of at least 9%. Existing evaluations retain the profit target agreed when the account was issued, including earlier 10% Pro accounts and 8%, 6%, or 5% Degen accounts. Existing custom evaluations retain the target frozen in their Rule Snapshot. Free Demo targets are unchanged.
5.5 Trading Day Requirements.
(a) Evaluation Stage: No minimum or maximum trading days. A User may pass in a single trade.
(b) Funded Stage: A minimum of three (3) qualifying trading days per payout period is required under every newly issued standard funded agreement. Newly issued standard funded agreements require three (3) qualifying trading days per payout period. Existing Funded Accounts and already-issued funded agreements retain their original two (2) qualifying trading days; this update does not change their account terms. Existing custom challenges also retain the payout terms frozen in their Rule Snapshot. The account's issued Schedule A and applicable frozen Rule Snapshot govern its requirement. The meme-coins add-on exception and Live Account rules are unchanged. A qualifying day is one on which closed P&L is at least 0.4% of the starting funded account size.
(c) A trading day is defined as a rolling 24-hour window resetting at 00:30 UTC.
5.6 No Best Day Rule.
(a) Funded payouts are not subject to a Best Day rule, single-day profit-distribution cap, or other payout consistency condition.
(b) The Company may still review outsized, abusive, collusive, or otherwise suspicious trading activity under Article VI.
(c) Meme-Coins Add-On Exception: After a Degen Funded Account for which the meme-coins add-on was purchased fills its first Robinhood Chain meme-coin order, that account requires four (4) profitable trading days (closed P&L above zero, with no 0.4% qualifying-day hurdle) and a thirty percent (30%) best-day cap on cycle net profit. A best day equal to 30% is permitted. A best day greater than 30% causes the payout request to be rejected. Failure to meet those conditions is not a Breach. The add-on cannot be removed after that first fill. Until the first fill, Section 5.5(b) and Section 5.6(a) apply unchanged.
5.7 Inactivity.
(a) An account with thirty (30) consecutive calendar days of no activity (defined as no trade opened or closed) shall be automatically terminated with a status of "closed inactive."
(b) Accounts with open positions or pending orders are exempt from inactivity closure until such positions are cleared.
(c) Inactivity closure ends future trading and new payout eligibility. It does not itself extinguish approved Payouts, accrued Eligible Net Profits that satisfied the applicable conditions, qualifying pre-breach requests, or refunds required by the governing documents or law. The User may request correction of a demonstrable factual, identity, data, or calculation error through hello@ferm.trade; a correctly determined closure does not confer a reset right.
5.7(d) Company Holds. Inactivity closure is paused while a trading withdrawal is pending review, an account payout hold is active, or the Company restricts the User account. A fresh thirty (30)-day inactivity period begins no earlier than the recorded release of the restriction. Time under those holds does not cause an immediate inactivity closure when trading resumes.
5.8 Breach.
(a) Any Breach of the risk rules set forth in this Article V is permanent and total. Breach is evaluated on live marks. During a volatility halt or a stale price feed on a held instrument, the determination is deferred for a short recovery window and then resolved on the last known mark.
(b) Upon Breach: all positions are closed, the account is permanently disabled, no new Payout may be requested, and no discretionary refund shall be issued; the express Refund Policy exceptions and mandatory cancellation or refund rights remain unaffected. A Payout request submitted on a Funded Account or Live Account before the Breach remains payable subject to standard review: the requested amount was already deducted from the account balance when the request was submitted, so the risk limits that determined the Breach applied only to the reduced balance. Disbursements already in progress with a payout provider continue.
(c) A correctly determined Breach permanently ends the account and does not entitle the User to a reset. The User may request review of a claimed factual, identity, market-data, or calculation error through hello@ferm.trade. The Company may correct a demonstrated error and retains the material basis of its decision. This process does not restrict complaints to payment providers, regulators, or courts, or any nonwaivable right or deadline. A new evaluation remains subject to applicable eligibility restrictions.
5.9 Live Accounts.
(a) Live Accounts use a fixed-dollar maximum loss limit in place of the percentage-based Maximum Loss Limit and Maximum Daily Loss Limit. The account breaches permanently if equity reaches or falls below the starting balance minus the fixed maximum loss for the account size.
| Account Size | Fixed Max Loss | Profit Split |
|---|
| $25,000 | $1,250 | 100% |
| $50,000 | $2,500 | 100% |
| $75,000 | $3,750 | 100% |
(b) No maximum daily loss limit or per-trade-idea maximum risk rules apply to Live Accounts. Standard leverage limits and margin concentration caps continue to apply at the evaluation-tier levels described in Section 6.7.
(c) Promotion to a Live Account follows risk-team review after four (4) approved funded payouts, or earlier at the Company's discretion. Upon promotion, all of the User's Funded Accounts are closed. The account sizes of Funded Accounts with at least one approved payout are averaged and rounded up to the nearest supported Live Account size ($25,000, $50,000, or $75,000, capped at $75,000). Funded Accounts without an approved payout are closed and the evaluation fee paid for them is refunded. Evaluation accounts are not closed by promotion, and the User may continue to purchase evaluations subject to the combined account cap in Section 4.6, which counts Live Accounts.
(d) The starting balance of a Live Account is a nominal trading reference amount and is not withdrawable or owned by the User. The Company capital commitment and qualifying payment obligations are described in Section 3.1.1.
(e) If a Live Account breaches its fixed maximum loss, the account is permanently closed and the User may not purchase paid evaluations for twenty-eight (28) days.
(f) Live Review Outcomes. Risk-team review may result in promotion, deferral (in which case Funded Accounts remain open and the User may continue to request Payouts), or denial. On denial, the Company will provide written notice, all of the User's Funded Accounts are closed, and no Live Account is issued. Unless the Company states otherwise in the denial notice: evaluation accounts remain open, no evaluation fee is refunded, and accrued Eligible Net Profits that already satisfy the Payout conditions of Article IX remain payable. The Company may, in the denial notice, (i) restrict remaining Payouts on the closed Funded Accounts to Company-initiated processing, (ii) determine that remaining profits that are not already an eligible Payout are not payable, (iii) close the User's evaluation accounts, (iv) impose a temporary cooldown on paid evaluation purchases, and/or (v) refund the evaluation fee for a Funded Account closed with no approved Payout. Denial is not a Breach. The User has no right to a Live Account, to continued funded trading, or to any amount that is not an eligible Payout at the time of notice, and the Company is not liable for simulated profits that were not an eligible Payout at that time or for any claimed loss of future trading opportunity.
5.10 Free Evaluations. Free evaluation accounts are offered at no charge for practice purposes only. They use the Beginner track risk parameters but are not payout-eligible: passing a free evaluation does not grant a Funded Account, and no Payout of any kind can ever arise from a free evaluation. Free evaluation accounts do not count toward the combined account cap in Section 4.6. References to the "Demo" track in the rule tables in this Article V refer to these free evaluation accounts.
5.11 Ferm Cup Prize Evaluations. Ferm Cup prize evaluations are complimentary payout-eligible Pro-track evaluations credited after a season closes. Prize evaluations count toward the combined account cap in Section 4.6. Eval Cup prize Funded Accounts follow the standard Payout rules of Article IX. A Demo Cup prize Funded Account permits exactly one approved Payout. After that Payout is approved, the Funded Account is closed, leftover queued withdrawals are rejected, and the already-approved balance remains settleable. That leftover rejection is a prize term, not a Breach clawback. This closure is a prize term, not a rule Breach. Free evaluation accounts described in Section 5.10 remain practice-only and are not prize evaluations.
5.12 Ferm Cup Scoring. The Eval Cup ranks paid evaluation accounts by banked progress and pass points. Only evaluation accounts linked to a completed purchase with a positive amount paid qualify; complimentary, credited, invite, prize, and zero-charge accounts do not qualify. For older paid buy-one-get-one bundles, an evaluation remains eligible for the Eval Cup when existing records cannot reliably identify it as the complimentary extra; identifiable complimentary extras, including those from new purchases, count toward the Demo Cup. Each qualifying evaluation earns up to 100 progress points before its account-size multiplier: its highest cumulative net profit from eligible trades closed within the season, divided by its evaluation profit target, multiplied by 100 and capped at 100. Positive profit forfeited under account rules does not count; losses reduce cumulative profit but do not remove points already earned from an earlier peak. A full evaluation pass within the season earns the full 100 progress points plus a 100-point pass bonus, for 200 base points. The Eval Cup multiplies each account's combined base progress and pass points by its account-size multiplier: $5,000 = 1x; $10,000 = 1.5x; $25,000 = 2x; $50,000 = 3x; $100,000 = 5x. After applying the multiplier, each account's score is rounded down to two decimal places before evaluations are summed. Full-pass scores are 200, 300, 400, 600, and 1,000 points, respectively. The size multiplier does not apply to the Demo Cup. Each paid evaluation scores independently, and earned points remain after later losses or a Breach. Funded and Live trading does not earn Cup points. The Demo Cup awards one point for each full pass within the season on a free Demo or complimentary evaluation, including Company credits, invites, prizes, and zero-charge evaluations; eligible net closed-trade profit in dollars breaks ties. A direct grant of a Funded Account is not an evaluation pass. The Families table sums the Eval Cup competition scores of a household's public seats (the head plus their direct referrals). Private members keep their chair but stay off the public score. The inaugural First Cycle of both the Eval Cup and Demo Cup runs from 17 August 2026 at 00:30 UTC through 1 October 2026 at 00:30 UTC. Thereafter each calendar month is its own season from the first trading-day reset. Rewards only pay out when a board has at least twenty-five (25) participants. Competition score is a ranking metric only and is not withdrawable profit, an account balance, or a Payout obligation.
5.13 Family Prize Evaluations. Family prize evaluations are complimentary payout-eligible evaluations on the claimed track and size, credited when a Family milestone is claimed. Prize evaluations count toward the combined account cap in Section 4.6. They follow the standard Evaluation rules of the claimed track and size. They are not free-tier practice accounts and are not refundable. Family prize Funded Accounts follow the standard Payout rules of Article IX. Free evaluation accounts described in Section 5.10 remain practice-only and are not prize evaluations.
5.14 Company-Credited Accounts. The Company may, at its discretion, credit an evaluation or Funded Account at no charge. Company-credited evaluations and Funded Accounts are granted at no charge and follow the standard trading and Payout rules for the applicable account. Company-credited Funded Accounts permit multiple approved Payouts and remain open after a Payout, subject to the normal account rules and Release Ceilings. Company-credited accounts count toward the combined account cap in Section 4.6. They are not free-tier practice accounts described in Section 5.10. The applicable Funded Trader Agreement's Schedule A uses the standard Payout designation.
