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Terms & Conditions

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Terms and Conditions

These Terms and Conditions govern traders use of the challenge account provided by PFH Funded for simulation trading. By opening a Challenge Account, Trader agrees to be bound by these terms and conditions.

1. Account Eligibility and Use

1.1 To qualify for a Trading Account, you must be at least 18 years of age or the legal age of majority in your jurisdiction.
1.2 You agree to use the Trading Account solely for simulation trading purposes.
1.3 You must maintain your account in good standing and comply with all applicable laws, regulations, and this Agreement.

2. Trading Conditions

2.1 You are required to adhere to the trading guidelines provided by the Company, which may include, but are not limited to:

  • Maximum drawdown limit.
  • Daily Drawdown Limit- The Daily Drawdown Limit will be reset on market reopen time and calculated based on the predefined equity position
  • Trading strategies and allowable instruments.
  • Trading hours, restrictions on news trading, or other specific instructions.

2.2 Maximum Drawdown Limit explanation

The Maximum drawdown is a risk management rule designed to assess your ability to manage losses effectively over the entire evaluation period. It sets a maximum percentage limit based on your equity that your account value cannot fall below during the evaluation. Think of it as a buffer zone that protects your account.

Example:

If your evaluation account starts with $200,000 and has an initial drawdown limit of 8%, your account equity cannot drop below $184,000 at any point during the evaluation. If your account equity falls below this limit, you will fail the evaluation.

2.3Daily Maximum Loss explanation and calculation for preset:
If Daily Drawdown is initially calculated by 4% of your initial balance or scaled balance (balance after payout) of your account.

It is then calculated of the starting equity or the balance of each new day (depending on which is higher) during market rollover (00:00 UTC + 2).

Example scenario:

If a user’s starting equity at the start of the new day (00:00 UTC + 2) is $103,000, but their balance is $100,000, then the user’s daily stop-out level is $99,000 within the same day until the simulated equity resets with the user’s new registered balance at market rollover again.
To better understand your limits, always follow your account loss analysis, which is located in the bottom right corner of your dashboard.Loss level represents the amount that you cannot exceed.
You agree to trade in a manner that maintains the integrity of the simulated or real trading environment provided by the Company.

3. Breaches of Trading Conditions

3.1 If you violate any of the trading conditions set forth by the Company, including but not limited to:

  • Exceeding Maximum drawdown limit.
  • The Daily Drawdown Limit.
  • Engaging in prohibited trading strategies or techniques.
  • Fraudulent activities, such as manipulating prices or executing unauthorized trades.

3.2 In the event of a breach, the Company reserves the right to suspend or disable your Trading Account, effective immediately.

  • The Company may also conduct a review of the breach and take additional corrective actions, including terminating the Trading Account without prior notice.
  • Any profits or trades made while in violation of the conditions may be voided at the discretion of the Company.

4. Account Suspension

4.1 Immediate Suspension: The Company may suspend or disable your Trading Account if you:

  • Breach any of the trading conditions outlined in this Agreement.
  • Engage in behaviour that is deemed harmful, unethical, or fraudulent.

4.2 Notification: If your Trading Account is suspended or disabled, you will be notified through the registered email address. The suspension will remain in effect until the Company has completed its review.

4.3 Final Decision: The Company’s decision to suspend or disable your Trading Account is final, and you will forfeit any right to challenge the suspension or appeal the decision.

  • No refunds or compensations will be issued for losses incurred as a result of such suspension.

5. Responsibility for Trades

5.1 You are solely responsible for any trades placed under your Trading Account, including losses, profits, and compliance with the trading conditions.
5.2 The Company will not be held liable for any direct, indirect, or consequential damages arising from breaches of these Terms.

6. Termination

6.1 You may terminate your Trading Account at any time by notifying the Company in writing.
6.2 The Company reserves the right to terminate your Trading Account at any time, without notice, if it deems your activities violate the terms of this Agreement.

7. Limitation of Liability

7.1 The Company will not be liable for any loss or damage that arises from the suspension or disabling of your Trading Account due to breaches of the trading conditions.
7.2 In no event will the Company be liable for any consequential, incidental, or indirect damages arising from your use of the Trading Account.

8. Amendments

8.1 The Company reserves the right to amend or update these Terms and Conditions at any time. Any changes will be communicated to you, and your continued use of the Trading Account constitutes acceptance of the revised Terms.

By accepting these Terms and Conditions, you acknowledge and agree to abide by all of the aforementioned rules and guidelines.

This document outlines the obligations and potential consequences for breaches, ensuring transparency for clients and the firm.