Navigating the reward process for different challenges at The Funded Trader can seem daunting, but understanding the specifics can help simplify this crucial aspect of your trading journey. Below, we outline how rewards are processed across various challenges and discuss the scaling plans that enhance your initial account balance.

All traders with eligible Funded accounts need to submit a reward request via the Rewards section of the Trade Hub. Reviews of trader's accounts are conducted before processing rewards, which currently are available through Rise (Riseworks), USDt (via ERC-20 and Polygon Network), Etherum (via ERC-20) and Bitcoin.
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For a detailed overview of our reward options, please refer to the following articles:

​Rise (Riseworks)

USDt (ERC-20 and Polygon), Etherum (ERC-20) and Bitcoin

Reward Processing Times:

Funded accounts become eligible to request rewards based on the time since the first trade is placed on the Funded account and subsequent rewards become eligible based on the amount of days after the date of your first trade following any previous withdrawal. Once a first trade is placed, your next reward request eligibility date will appear on the rewards section of the Trade Hub, as long as the accounts balance is above its starting balance.

To request a reward, traders must first be verified, which includes submission of a government-issued ID, proof of address, and a signed Funded Trader Agreement. No open positions should be active at the time of the reward request and account balance must be above the starting balance in order to be eligible to submit a reward request.

Note: A reward means you are paid based on data which is measured by simulated profit.

At The Funded Trader (TFT), we perform additional risk checks for prohibited trading strategies before processing rewards to ensure compliance with our trading rules. Our goal is to fully automate risk management, but certain key checks remain in place to maintain fairness and integrity in the trading environment.

Ongoing Risk Checks During Rewards

When you reach the reward stage, we conduct thorough reviews to ensure no violations have occurred during the funded phase. If any violations are identified, the following actions may be taken:

• Deduction of Net Profits: Any profits earned from trades that violated our rules will be deducted from your reward. The remaining balance will still be available for withdrawal.

• Request for New Reward: Once adjustments are made for any violations, you can immediately request another reward if necessary.

These checks are in place to maintain a fair trading environment and ensure rewards are processed with integrity.

Important Notice Regarding KYC Process and Rewards

Before any rewards can be processed, traders must successfully complete the KYC (Know Your Customer) process. If you fail to complete the KYC process or are denied by our KYC partner:

• You will not be eligible for a refund of any orders.

• You will be prohibited from purchasing future products on our platform.

Our KYC partner follows strict Anti-Money Laundering (AML) and KYC guidelines. It is important to stay in good standing with them. If you fail to do so, it is beyond our control, and we must act accordingly.

Refund Policy:

Please note that no refunds will be issued if you fail to complete the KYC process. We encourage all clients to ensure they meet the KYC requirements before making any purchases on our platform.

Violation Warning System

We actively monitor trading activities to ensure compliance with our Terms of Use. If a trader violates these terms, a structured warning system is applied:

1. First and Second Warnings: When a violation is detected, a warning is issued. Profits from violating trades are deducted, while losses remain unchanged and count toward the warning system.

2. Third Warning: Upon the third violation, the account will be breached, and further actions may be taken, such as suspension or termination of the account.

Warnings carry forward, meaning violations accumulate over time and do not reset after each reward or phase.

For more detailed information on the specific checks and violations (such as news trading, order layering, and high-frequency trading) that are monitored during the reward process, please refer to the detailed violations article here.

When you make a withdrawal from the TFT funded account, it reduces the balance by the same amount. For example, if your account is at $107,000 and you withdraw $5,000, you will only have a $2,000 drawdown left to trade, as the account has a relative drawdown.

Note: For TFT Funded Knight Accounts, it is important to always leave a buffer on the account, as this buffer will act as your maximum loss limit. In cases where the full available amount is requested as a reward, the account will automatically be breached.

Example 1: If your TFT account is at $105,000 and you withdraw $5,000. You will only have $0 drawdown left to trade as the account has relative drawdown. In this example the account will be breached.

Example 2: If your TFT account is at $105,000 and you withdraw $3,000. You will only have a $2,000 drawdown left to trade as the account has relative drawdown. In this example, the account will not be considered breached.

We have introduced a new withdrawal warning system for clients whose Knight Funded accounts have their max relative drawdown set to their initial balance. If such clients request to withdraw their entire profit, thereby resetting their balance to the initial balance and risking account breach, the system will issue a warning. Clients can then cancel the withdrawal and select a lower amount or proceed, acknowledging the potential breach.

Maintaining a buffer in your Knight Funded account is crucial for avoiding breaches due to drawdown violations, especially when the max relative drawdown is set to the initial balance.

At The Funded Trader, we understand the value of rewarding consistent performance. Our scaling plans across different challenges—Standard, Rapid, Royal, Knight, and Dragon—are designed to provide traders with the opportunity to increase their account's virtual starting balance and potential profit sharing percentage based on their trading success. This comprehensive guide outlines how you can grow your demo account and enhance your simulated rewards.

Scaling is a process designed to incrementally increase a trader's demo account balance by a set percentage, based on consistent simulated trading performance over time.

Account scaling happens automatically and will only be done and processed while awaiting a withdrawal since the account balance must equal the starting balance when an account is scaled.

Note: Since daily and maximum drawdown loss limits are always calculated as a percentage of virtual starting balance, scaling your account will also scale your daily and maximum drawdown limits.

The Funded Trader allows traders to scale their demo account virtual balances through account increases of up to 25%, with a maximum balance of $1.5M in simulated virtual starting balance across all active Standard, Rapid, Royal, Knight, and Dragon funded accounts.

For example, if you have two 200K funded accounts, you can scale each of them to 750K in virtual starting balance, resulting in a total of $1.5M in virtual starting balance, which is the maximum allowed through the scaling plan.

Knight Pro Account Exception

The Knight Pro Challenge offers an even higher scaling potential, allowing traders to hold up to $2.5M in simulated virtual starting balance across up to 20 accounts. This is significantly higher than other challenge types and gives Knight Pro traders the ability to reach a maximum of $5M combined across both challenge and funded accounts.

In summary:

• For Standard, Rapid, Royal, Knight, and Dragon challenges: Maximum of $1.5M in total simulated funded balance.

• For Knight Pro challenges: Maximum of $2.5M in funded accounts and an additional $2.5M during the challenge phase, totaling $5M in active accounts.

Understanding the reward process and scaling opportunities at The Funded Trader allows for a more strategic and informed trading approach. Each Funded account offers unique benefits and requires specific criteria for rewards and account growth, tailored to support your trading ambitions effectively. For more details or specific inquiries, contact our support at [email protected].