A prop firm challenge is an evaluation you pay to attempt: hit a profit target within drawdown limits over a set period, and the firm gives you a funded account to trade with its capital.
The fee is the firm's revenue whether you pass or not, and typical pass rates are in the single digits. Read the drawdown rule first — whether it is measured on balance or equity, and whether the daily limit resets at a time that suits your session — because that clause, not the profit target, is what ends most attempts.
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Guide
What a Prop Firm Challenge Actually Tests
The profit target gets the marketing and the drawdown rule ends the attempt. What the evaluation is really measuring, which clauses decide the outcome, and how to read a firm's rules before you pay.