The Xpert Funding 2-Step Challenge Model is designed to identify and reward skilled, disciplined traders.
Key Summary:
Profit Target: Phase 1 – 8% • Phase 2 – 5% • Daily Drawdown: 5% • Max Drawdown: 10% (Fixed) • Minimum Trading Days: 3 per phase • Profit Split: 80% • No Time Limit • News & Weekend Holding: Not Allowed • Payout Cycle: Every 21 Days
Phases for the 2-Step Challenge Model
The Xpert Funding 2-Step Challenge is a progressive evaluation model designed for traders who value structure, risk control, and consistency.
This model features two distinct phases that assess your ability to manage drawdowns, maintain discipline, and generate steady results before advancing to your Funded (Simulated) Account.
Each phase follows the same risk parameters, including the 5% Daily Drawdown, 10% Max Drawdown, and 75% Margin Use rule ensuring a fair and transparent evaluation for every trader.
Next Steps After Passing a Phase
The process after completing each phase depends on your account size:
Accounts below $10,000: The next phase begins automatically after successful completion.
Accounts $10,000 and above: Your results undergo a manual review by our risk team before moving on or receiving a funded account. (24H)
This brief review ensures all results meet Xpert Funding’s compliance standards and are eligible for payout activation.
The Evaluation Phase ( Phase 1 )
The first phase tests your ability to meet your profit target while respecting all risk management rules. It’s designed to confirm your trading discipline and control under real market conditions.
Objectives:
Reach the set profit target while following all trading and drawdown rules.
Complete a minimum of 3 trading days with at least 0.5% daily movement.
Avoid news and weekend violations.
The Verification Phase ( Phase 2)
In the second phase, traders must demonstrate consistency and stability using the same account conditions. This stage ensures your results are repeatable and not based on short-term performance.
Objectives:
Maintain proper risk management and trading discipline.
Meet the required profit target under identical parameters.
Complete at least 3 active trading days.
The Funded (Simulated) Account
After passing both phases, you’ll receive your Funded (Simulated) Account, where you can continue trading under professional parameters and earn real payouts based on your simulated performance. Your journey doesn’t end at funding. Traders who remain consistent can qualify for scaling opportunities and higher capital allocations.
To learn more about payout frequency, scaling, and commissions, visit our Reward Cycle section.
Account Violation ( Hard Breach )
A Hard Breach refers to a serious violation of the trading rules that results in the immediate and permanent closure of the Challenge and funded account.
Maximum Loss Limit (10%)
The Maximum Loss Limit represents the total amount your balance or equity cannot fall below relative to your starting balance.
It is fixed, not trailing and remains constant throughout both phases of the challenge.Maximum Drawdown: 10% (of the initial account balance)
Example:
For a $100,000 account, your equity or balance must never drop below $90,000.
If it does, the account is breached immediately.
Daily Loss Limit (5%)
The Daily Loss Limit defines the maximum amount your account can lose within a single trading day. It is calculated each day at 00:00 UTC based on the higher value between balance or equity.Daily Loss Limit: 5% (of the higher balance or equity at 00:00 UTC)
Example 1 – Higher Equity:
If your balance is $105,000 and equity is $107,000 → equity cannot fall below $101,650 that day.
Example 2 – Higher Balance:
If your balance is $100,000 and equity is $99,000 → equity cannot fall below $95,000 that day.
This limit resets daily at 00:00 UTC using the higher of your balance or equity.
75% Margin Use Rule
Traders must not use more than 75% of available margin across open positions.This rule prevents over-leveraging and ensures sustainable exposure.
Example:
With a $100 000 account and 1:50 leverage, your buying power equals $5 000 000.Under the 75% rule, the maximum usable exposure is $3 750 000.
Opening trades above this limit results in an immediate breach.
Inactivity Rule
If your account remains inactive for 30 consecutive days, it will automatically be closed.To remain active, at least one trade must be opened and closed within each 30-day period.
Soft Breaches (Warnings & Minor Violations)
Soft breaches are non-terminal violations of trading conduct.
They do not close your account but may lead to a temporary suspension, profit reduction, or payout delay. These exist to protect trading consistency and maintain fairness across all participants.
News Trading Violation
Trading during restricted high-impact news windows is classified as a soft breach.Positions opened or closed within 5 minutes before or after major economic releases (as listed on Forex Factory) fall under this rule.
Restricted Window: 5 minutes before and after the scheduled news time
Consequence:
First violation → Warning + profit deduction
Repeated violations → Profit deduction or account review
Example : If the Non-Farm Payroll (NFP) report for USD is scheduled for 14:00 UTC, all trades must be closed between 13:55 UTC and 14:05 UTC. No new positions related to USD should be opened within this window
Weekend Holding Violation
Holding or opening trades over the weekend is not permitted and counts as a soft breach.Traders must close all positions before the market closes on Friday.
Consequence:
First violation → Warning + profit deduction
Repeated violations → Profit deduction or account review
This rule prevents exposure to weekend gaps and unpredictable volatility.
*Traders are responsible for violations if deductions exceed the daily loss or maximum loss limit.
Trade limit
No single trade should make more than 70% of your profit target. Also, note that multiple trades placed at the same time on the same asset are also counted as one trade.(Applies during challenge Phase).
Reward Cycle & Profit Split
Our Reward Cycle defines how traders receive payouts and how profits are distributed once the account becomes funded. This structure ensures regular, transparent compensation while encouraging disciplined performance.
Profit Split
Profit Split: 80% to the trader, 20% to Xpert Funding
Applies To: Funded Accounts only
All profits are calculated based on closed trades.
Withdrawals cannot be made from open positions or floating equity.
Payout Frequency
Cycle: Every 21 days
Eligibility:
At least 3 profitable trading days since the last payout
Minimum $100 profit balance
Payouts can be requested through your Xpert Funding dashboard once these conditions are met. All verified profits are distributed within the next payment cycle.
Instrument Types & Leverage
Trading instruments are divided into categories with clearly defined leverage limits.
These parameters ensure realistic exposure and maintain consistent risk management between the Challenge and Funded phases.
Leverage
Challenge Phase
Forex (1:100)
Indices (1:20)
Commodities (1:20)
Crypto (1:2)
Funded Phase
Forex (1:50)
Indices (1:10)
Commodities (1:10)
Crypto (1:2)