Fondeo Trading Rules

This document explains all the rules you need to follow when trading with Fondeo. These rules apply during evaluation phases and funded accounts. Read them carefully before you start trading.

1. Challenge Types

Fondeo offers three evaluation formats to become a funded trader:

One-Step Challenge

You only need to pass one evaluation phase. Reach the profit target in at least 10 trading days and you get funded. It's faster, but with tighter drawdown limits.

Two-Step Challenge

You pass two phases. Phase 1 has a higher profit target, and Phase 2 is a lighter verification with a lower target. You get more drawdown room with this option.

Subscription Challenge

Instead of paying a one-time fee, you pay a monthly subscription to access the challenge. The trading rules are the same as the One-Step Challenge (same profit target, drawdown limits, and minimum trading days). If you fail, your subscription keeps your account active so you can try again without buying a new challenge. If you pass, you move to a funded account just like with any other challenge type.

2. Profit Targets

Your goal is to grow the account by a certain percentage to pass each phase.

One-Step Challenge: 10% profit target
Two-Step Challenge Phase 1: 10% profit target
Two-Step Challenge Phase 2: 5% profit target
Subscription Challenge: 10% profit target

There is no time limit to reach the profit target. You can trade at your own pace.

3. Minimum Trading Days

You must trade on a minimum number of separate days before you can pass a phase. This ensures your results are consistent and not based on one lucky day.

One-Step Challenge: 10 trading days minimum
Two-Step Phase 1: 10 trading days minimum
Two-Step Phase 2: 5 trading days minimum
Subscription Challenge: 10 trading days minimum

For a day to count as a valid trading day, you must place at least 3 trades, each with a minimum value of 5% of the initial balance. Additionally, the day's profit or loss must be outside the -1% to +1% range. If your daily P&L falls within this range, the day will not count toward your minimum trading days requirement.

4. Daily Drawdown Limit

The daily drawdown is the maximum amount your account can lose in a single day. If your losses in one day exceed this limit, the challenge fails immediately.

One-Step Challenge: 4% of the initial account balance
Two-Step Challenge: 5% of the initial account balance
Subscription Challenge: 4% of the initial account balance

The daily drawdown is calculated from the highest equity point reached during the day (trailing). This means if your account grows during the day, the drawdown floor moves up with it.

5. Maximum Loss (Max Drawdown)

This is the total overall loss allowed on your account from the very beginning. If your account drops below this level at any point, the challenge fails immediately.

One-Step Challenge: 6% of the initial account balance
Two-Step Challenge Phase 1: 10% of the initial account balance
Two-Step Challenge Phase 2: 5% of the initial account balance
Subscription Challenge: 6% of the initial account balance

6. Stop-Loss Requirement

Every trade must have a stop-loss. This is mandatory and monitored in real time.

You have 5 minutes from opening a trade to set the stop-loss.
The stop-loss must be placed using the TP/SL function (Stop Loss or Trailing Stop Loss on Bybit). Conditional orders or limit close orders are not valid.
Always edit your stop-loss, never cancel it. Removing a stop-loss counts as a violation.
First violation: You receive a soft breach warning and have 1 hour to fix it. This grace is available only once per account.
Second violation: Your account is permanently closed with no appeal.

7. Maximum Risk Per Trade

You should not risk more than 3% of your initial account balance on any single trade. A triggered stop-loss must not result in a loss greater than 3%.

This helps prevent large single-trade losses from destroying your account.

8. Minimum Order Size

Each trade must have a minimum value of 5% of your initial account balance. This prevents placing extremely small trades that don't meaningfully contribute to your evaluation.

9. Profit Distribution Rule (Consistency Rule)

During evaluation phases only (not funded accounts), no single trading day may contribute more than 40% of your total profit. Only positive profit days count for this calculation; losses don't offset it.

This rule prevents passing the challenge based on one extremely lucky day and encourages consistent, responsible trading over multiple days.

10. Maximum Exposure

You can risk up to 25% of your initial challenge balance at any single time. This means the total potential loss across all open positions should not exceed 25%.

Additionally, the total value of all open trades must not exceed 2 times your initial account balance. This promotes responsible position sizing.

11. Funded Account Rules

Once you pass the evaluation, you receive a funded account. Funded accounts have different rules from evaluation phases:

No profit target — there is no percentage you need to reach. You trade freely and keep your profits.
No time limit — there is no deadline. You can trade for as long as you want.
No minimum trading days — you are not required to trade a specific number of days.
No consistency rule — the 40% profit distribution rule does not apply to funded accounts.

All risk management rules still apply on funded accounts: daily drawdown limits, maximum loss limits, stop-loss requirements, maximum risk per trade, and minimum order size.

Profit Split

You earn a share of the profits you generate on your funded account:

Starting split: 70% of profits go to you
Scaling: Your profit split increases by 5% every 4 months
Maximum split: 90% after 16 months of consistent trading

Payout Rules

You can request your first payout after 1 calendar day from your first funded trade
Minimum payout amount: $100 profit
Maximum per payout: 5% profit — once you reach 5% profit, you must withdraw before continuing to trade
Payouts are processed in USDT or USDC within 12-48 hours
No withdrawal fees or commissions
Your challenge fee is refunded with your first profit split

Scaling Plan

Successful funded traders can grow their account over time:

Every 4 months, if you meet profitability goals, you can scale up
Each scale-up increases your account by 25%
Maximum account size: $1,000,000 USDT
Total capital across all active accounts cannot exceed $200,000

12. Minimum Win Rate

During evaluation phases, you must maintain a minimum win rate of 50%. This means at least half of your closed trades must be profitable.

This rule ensures that you demonstrate a consistent and viable trading strategy, not just large isolated gains that mask an overall losing approach.

13. Prohibited Actions

The following strategies and behaviors are strictly prohibited:

Martingale Strategy

Doubling down after losses (increasing position size after a losing trade) is not allowed. This high-risk strategy contradicts responsible risk management.

Cross-Account Hedging

You cannot open opposite positions (hedging) across two or more different accounts that you own. Each account must be traded independently.

Low-Cap Altcoin Restriction

Trading low-cap altcoins using more than 5% of your initial balance is restricted. Low-cap altcoins are those with a market cap below $100 million or 24-hour trading volume below $5 million. These restrictions exist because large positions in illiquid assets can't be replicated in a live environment.

Bots and Automated Trading

The use of trading bots, automated systems, or algorithmic execution is not allowed. Fondeo challenges are designed to evaluate your personal trading skills, decision-making, and risk management. We are looking for skilled traders, not automated programs. All trades must be placed and managed manually by you.

News Trading

Trading around major news events is restricted. Avoid opening or modifying positions during high-impact economic announcements.

14. Allowed Strategies

The following are permitted:

Scalping — quick in-and-out trades
Overnight and weekend positions — you can hold trades across days and weekends
Any technical indicators — use whatever analysis tools you prefer
No time limit — trade at your own pace, wait for your setups

15. Account Inactivity

If your account has no trading activity for 90 consecutive days, it may be closed. Stay active to keep your account open.

16. Soft Breach and Account Closure

Soft breach (stop-loss): First time you fail to set a stop-loss, you get a warning email and 1 hour to fix it. This happens only once.
Hard breach: Breaking any drawdown limit, max loss limit, or second stop-loss violation results in immediate and permanent account closure.
Accounts are manually reviewed for signs of gambling or reckless "all-or-nothing" behavior. Fondeo reserves the right to restrict accounts showing these patterns.

17. KYC Requirements

KYC (identity verification) is not required to start or pass challenges
KYC is required before trading on a funded account with real capital

18. Supported Platforms

Bybit — you can use the Bybit platform to place and manage your trades
Terminal — Fondeo's own trading platform, built to give you a better trading environment with full control over your positions, risk management, and real-time monitoring

MT4, MT5, and TradingView direct execution are not supported.

Quick Reference Table

| Rule | One-Step | Two-Step P1 | Two-Step P2 | Subscription | Funded | |---|---|---|---|---|---| | Daily Drawdown | 4% | 5% | 5% | 4% | 4%/5% | | Max Loss | 6% | 10% | 5% | 6% | 6%/10% | | Profit Target | 10% | 10% | 5% | 10% | None | | Min Trading Days | 10 | 10 | 5 | 10 | None | | Stop-Loss Required | Yes | Yes | Yes | Yes | Yes | | Max Risk Per Trade | 3% | 3% | 3% | 3% | 3% | | Min Order Size | 5% | 5% | 5% | 5% | 5% | | Min Trades Per Day | 3 | 3 | 3 | 3 | 3 | | Daily Activity | ±1% | ±1% | ±1% | ±1% | ±1% | | Min Win Rate | 50% | 50% | 50% | 50% | No | | Consistency Rule (40%) | Yes | Yes | Yes | Yes | No | | Profit Split | — | — | — | — | 70-90% |