Definition
2-step challenge
The classic two-phase evaluation: a first target (~8–10%), a second easier one (~5%), then funded.
The 2-step is the industry's standard format. Phase one has the higher target; phase two is easier, verifying that phase one wasn't a lucky streak.
Because the firm gets two looks at your risk control, 2-step programs usually offer the most forgiving drawdown terms — which is why they remain the best on-ramp for most traders.
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General industry definitions — individual firms define terms differently in their own ToS; the decoded rulebook for each firm is the source of truth. Educational, not financial advice.