Synthetic Flex Challenge Rules

Section 1 – Synthetic Flex Challenge Parameters

1.1 Challenge Models

The BloomFunded Synthetic Flex Challenges consist of a 1-Step Challenge designed to evaluate your trading skills. Detailed information regarding the model is provided during the registration process.

1.2 Trading Guidelines

The Customer must adhere to the following guidelines. Failure to comply may result in account termination or unsuccessful completion of the challenge.

1-Step Flex Challenge

1.2.1 Max Daily Drawdown

In the 1-Step Flex Challenge, the Daily Drawdown is a fixed 3% of your starting balance. This percentage is deducted from the higher of your Balance or Equity at the beginning of each day. The daily reset occurs at 17:00 EST. Daily drawdown limits are essential controls that help traders maintain disciplined trading practices while safeguarding their accounts within designated risk levels, promoting long-term viability for participants.

Example 1: Suppose you have a $100,000 account. With a fixed Daily Drawdown of 3%, your equity can decrease to a minimum of $97,000. Even if your equity rises to $103,000 and then falls back to $100,000 on the same day, you can continue trading. Conversely, if your balance/equity increases to $103,000 at the end of the day, the drawdown resets at 17:00 EST to $103,000, resulting in a new limit of $100,000.

Example 2: If you start the following day with $103,000 equity stemming from your $100,000 account, the Daily Drawdown is determined from this highest previous equity. Thus, on the next day, your Daily Drawdown limit adjusts to $100,000 ($103,000 − $3,000 [3%]).

Breaches typically happen when traders overlook their updated equity levels or misinterpret the reset mechanism. For example, if your calculated drawdown limit is $100,000 but losses reduce your equity below this figure, you will experience a breach. Similarly, profit resets might lead traders to misinterpret their limits, resulting in unintended breaches.

Important: Your account will breach if either the daily or maximum drawdown limit is exceeded. To mitigate risks, traders should consistently monitor their account dashboards and ensure their strategies align with daily and maximum drawdown parameters.

1.2.2 Maximum Drawdown (Max DD)

The Maximum Allowable Loss Limit represents the maximum equity loss you can incur before your account is considered failed. In the 1-Step Flex Challenge, the Maximum Drawdown is a trailing 8% of the highest equity achieved at any point during the challenge. As long as your account balance grows, your maximum allowable equity loss adjusts accordingly, providing you with more flexibility as you make profits.

No Reset: Unlike the Daily Drawdown, which resets daily, the Max Drawdown does not reset; it continuously trails your highest equity level.

Example 1: Starting balance $100,000 — initial Max Drawdown $92,000 (8% below $100,000). If your equity rises to $108,000, the new Max Drawdown is $100,000. If your equity then drops below $100,000 (e.g. $99,500) you breach the Max Drawdown limit.

Example 2: New high achieved at $110,000 — new Max Drawdown $102,000 (8% below $110,000). If equity falls below $102,000 (e.g. $101,500) you breach the Max Drawdown limit.

The Maximum Drawdown represents a safety net that adjusts with your highest achievements, promoting a growth-oriented mindset while also managing risk. Monitoring your highest equity levels is crucial, as breaching this limit can lead to the account being considered failed. Both Daily Drawdown and Maximum Drawdown serve as vital tools for maintaining risk management and ensuring disciplined trading behaviour.

1.2.3 Minimum Trading Days Requirement

The Customer must trade for a minimum number of days, depending on the model. In the context of evaluation and earning accounts, it is essential to meet specific trading day requirements to ensure continued progress towards account milestones, such as challenges or qualifications.

• Minimum Profit Requirement: you must make a minimum of 0.5% profit to qualify as a minimum trading day.
• Trading Days: active days where you make a minimum of 0.5% profit.
• Payout Policy: the day of a payout approval does not count as an active trading day, even if you made a profit that day.
• There will be an add-on available to purchase which allows you to trade without the minimum trading days requirement.

Scenario 1: initial balance $10,000 — 0.5% of $10,000 = $50. To qualify for a minimum trading day you must make a profit of at least $50 during that single trading day.

Scenario 2: initial balance $50,000 with $1,000 profit made (new balance $51,000) — 0.5% of $50,000 = $250. Regardless of your current balance now being $51,000, the minimum profit requirement remains $250 in a single trading day.

Minimum trading day requirements vary based on the plan you choose — use your BloomFunded dashboard to monitor your performance. Current requirement: 1-Step Flex Challenge — 4 days.

1.2.4 Consistency Rule

1-Step Flex Challenge — 35%. A. Evaluation Phase: BloomFunded applies a 35% consistency rule. During the Evaluation Phase, no single trading day may generate a profit greater than 35% of the applicable profit target. Formula: maximum allowed profit per trading day = 35% × Profit Target. If a trader exceeds this threshold, the account will be considered in breach of the consistency rule and would not qualify for a payout. Example — $100,000 account (8% target): profit target $8,000, 35% of $8,000 = $2,800, so no single trading day may exceed $2,800 in profit.

B. Funded Phase (Payout Consistency Rule): in the Funded Phase, the 35% consistency rule applies to the payout amount requested, not to the total account profit. When a trader submits a payout request, the highest single profitable trading day within the payout period must not exceed the allowed share of the requested payout amount. Formula: maximum allowed single trading day = 35% × requested payout amount. If the highest trading day exceeds this threshold, the trader must continue to trade until consistency is within range.

Funded Phase Example – $100,000 account. A trader requests a $4,000 payout. 35% of $4,000 = $1,400, so the maximum allowed single trading day is $1,400. If the trader’s highest trading day during the payout period is $900 — full $4,000 payout approved. $1,000 — full $4,000 payout approved. $1,500 — payout denied; the trader must keep trading until consistency is within limits ($1,500 / 0.35 = $4,285), so they must trade to $4,285 before requesting a payout.

1.2.5 Profit Target

The Customer must achieve a minimum profit growth, as specified for each model, in order to successfully pass the challenge phase. Meeting both the profit target and the minimum trading days requirement will be considered successful completion of the challenge: 1-Step Flex Challenge — Phase 1: 10%.

1.2.6 Gambling Strategies

Gambling strategies are prohibited during the challenge phase. BloomFunded defines gambling as excessive scalping: executing 50% or more of your trades in under 2 minutes. This includes tick scalping and high-frequency trading (HFT).

1.2.7 Position Limits

Total open positions per asset = 5. Total open positions per account = 13.

1.2.8 Maximum Lot Sizes per Pair

At BloomFunded we provide maximum lot sizes for each trading pair and account size. These guidelines are designed to support proper risk management and to help protect traders from excessive exposure. Traders are strongly encouraged to remain within the maximum lot size ranges when placing trades and remain fully responsible for managing their risk appropriately at all times.

Important notice: it is the sole responsibility of the trader to ensure they remain within the range of lot sizes mentioned above. If a trader exceeds the maximum lot size or position limit, that will count as a violation and the account will be suspended at the discretion of BloomFunded.

1.2.9 Technical Flaw Exploitation

Using system flaws for advantage is prohibited and may lead to immediate suspension from the challenge.

1.2.10 Hedging

Hedging is not allowed by BloomFunded for the time being.

1.2.11 Costs

All costs related to service provision by the Provider are the Provider’s responsibility.

1.2.12 Applicable Rules

The terms outlined in the FAQ/Rules govern BloomFunded Challenge accounts.

1.2.13 Modification by Add-ons and Special Offers

Add-ons and Special Offers selected during the BloomFunded Challenge may modify the trading guidelines in this section. These modifications take precedence over the standard guidelines for their applicable duration.

1.2.14 Copy Trading

BloomFunded allows copy trading through a designated VPS between your own BloomFunded Challenge Accounts, as long as one account is clearly designated as the master account. However, copy trading between individuals, including the use of cloud-based copy tools such as Social Trader Tools or Duplikum, is strictly prohibited. Violations can result in warnings or account termination. Traders are not permitted to copy trades between accounts owned by different individuals, including family members, friends or third parties. Engaging in account management services or participating in a “Pass Your Challenge” scheme also violates BloomFunded’s policies.

Section 2 – Prohibited Trading Practices

2.1 General Prohibition

The Customer is prohibited from conducting trades that contravene the stipulations outlined in this section or the FAQ. Any trades that violate these stipulations are strictly forbidden. The Customer must adhere to the rules and guidelines set forth in this section and those established by the FAQ when utilising the Services.

2.1.1 Latency Trading

The Customer must not intentionally or unintentionally use trading strategies that exploit errors in the Services, such as inaccuracies in displayed prices or delays in their updates, including but not limited to practices known as Latency Trading.

2.1.2 External Data Feeds

Executing trades using an external or slow data feed or performing gap trading is prohibited.

2.1.3 Manipulative Software

The use of any software, artificial intelligence, ultra-high-speed or high-frequency trading, or mass data entry that could manipulate or abuse the Provider’s systems or services, or provide an unfair advantage, is prohibited.

2.1.4 Third-party Trading

The Customer is prohibited from participating in or collaborating with a third party to execute trades, whether such third party is a private individual or a professional. Accessing or allowing trading on their BloomFunded Challenge Account by any third party is also prohibited.

2.1.5 Account Management by Third Parties

Accessing any third-party BloomFunded Challenge Account, trading on behalf of any third party, or conducting account management services for another user is prohibited.

2.2 BloomFunded’s Rights

BloomFunded retains the exclusive right to impose trading restrictions, modify account parameters or terminate accounts at its sole discretion to ensure the stability and integrity of its trading environment. This right may be exercised under circumstances including, but not limited to:

• 2.2.1 Excessive Risk — if BloomFunded determines that a client’s trading strategy, behaviour or specific trades pose a risk deemed excessive or unmanageable under current market conditions, affecting BloomFunded or its customers.
• 2.2.2 Incompatible Practices — if trading practices are found to be incompatible with standard market operations or BloomFunded’s risk management policies.
• 2.2.3 Inconsistent Patterns — if there are inconsistencies in trading patterns, such as significant deviations from the client’s historical trading behaviour.
• 2.2.4 Regulatory Compliance — BloomFunded may impose restrictions to ensure compliance with applicable regulatory requirements or internal policies designed to maintain a secure trading environment.

2.3 Transparency and Client Notification

To maintain transparency and ensure effective management of trading practices, BloomFunded will make reasonable efforts to notify clients of any trading restrictions, modifications or account terminations, providing reasons for such actions (2.3.1). Immediate action may be taken without prior notice to protect platform integrity. Clients will have the opportunity to request a review of any imposed restrictions or account actions; BloomFunded will consider appeals on a case-by-case basis but reserves the right to uphold its original decision (2.3.2). BloomFunded shall not be liable for any losses or damages resulting from imposed trading restrictions or account termination, and clients agree to hold BloomFunded harmless against any claims arising from such actions (2.3.3).

2.4 Consequences of Prohibited Practices

If any or all of the Prohibited Trading Practices are carried out on one or more BloomFunded Challenge Accounts of a Customer, or combined with other accounts, the Provider is entitled to cancel all Services and terminate all relevant contracts. The Provider may take actions set forth in Sections 2.2 and 2.3 at its sole discretion, and the Customer shall not be entitled to a refund of fees paid.

2.5 Repeated Violations

If the Customer repeatedly engages in any of the practices described in Article 2.1 and has been previously notified, the Provider may deny access to all or part of the Services without compensation.

2.6 Third-Party Trading Responsibility

The Provider shall not bear any responsibility for trading or investment activities the Customer performs outside the relationship with the Provider, even if using the same trading platform for real trading. This applies particularly to any third-party services used via the platform.

Section 3 – Know Your Customer (KYC)

BLOOM GROWTH-FZCO is committed to implementing robust and comprehensive procedures in accordance with legal and regulatory requirements pertaining to Know Your Customer (KYC), Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD).

3.1 Know Your Customer (KYC)

The objectives of the KYC procedures are to establish a streamlined and efficient mechanism for identifying and vetting prospective counterparties, mitigate the risks of money laundering by acquiring and analysing relevant information, and facilitate the detection of suspicious transactions by identifying inconsistencies with the information received.

KYC verification must be conducted solely by the individual account holder. Multiple individuals attempting KYC verification for a single account are strictly prohibited. If such violations are detected, the Provider reserves the right to terminate the account with immediate effect.

3.2 Customer Due Diligence (CDD)

CDD is a mandatory process for initiating and maintaining engagements with counterparties. The CDD protocol involves collecting verifiable identification data to unequivocally establish identity, understanding the intended nature and purpose of the counterparty’s trading activities including strategies employed and financial market knowledge, and performing ongoing monitoring of trading activities to ensure they are consistent with the counterparty’s stated trading strategy, risk profile and financial resources.

3.3 Enhanced Due Diligence (EDD)

For business relationships or transactions that present a heightened risk, as determined by the Provider’s risk assessment, EDD will be implemented. These enhanced measures exceed standard CDD requirements and include obtaining additional identity verification documents, conducting a detailed interview which may include a video call, gaining deeper insight into the counterparty’s trading methodology to ensure alignment with our risk tolerance and ethical trading standards, and implementing intensified and ongoing monitoring of trading activities.

3.4 KYC Procedures by BloomFunded

• Identity Verification — verify the identity of the counterparty based on original or properly certified documents after the challenge phases have been successfully completed. The KYC verification process shall be initiated first.
• Verification Methods — upon starting verification, the counterparty shall be vetted through two options: scanning a QR code or receiving a verification link via SMS.
• Document Submission — documents must be issued by a government authority or official body. Acceptable documents include a valid photo ID such as a national ID, passport or driving licence.
• Validity of Documents — KYC verification shall not be completed if expired documents are provided. Only the most recent valid documents will be accepted.
• Agreement Signing — the counterparty must provide a full name and address and agree to the terms in the agreement. Verification may then take 48–72 hours.
• Compliance Requirement — the Provider requires strict compliance and reserves the right to refuse or discontinue any business engagement if CDD, EDD or KYC criteria are not satisfactorily met.
• Rejection of Applications — failure to pass the KYC verification process shall result in the rejection of the counterparty’s BloomFunded Account application.
• Third-Party Service Providers — the Provider conducts the KYC process through the trusted third-party service provider Veriff. KYC verification is not performed directly by the Provider.
• Data Handling and Privacy — the Provider does not store or hold any KYC data on its systems. All KYC information is processed and secured by the respective third-party service providers, governed by the Provider’s Privacy Policy.

Section 4 – Refund Policy

4.1 Termination Request by Customer

A Customer wishing to terminate their Client Section must send a request to support@bloomfunded.com. Such a request signifies the desire to end the contractual relationship, resulting in the loss of access to all Services, including the Client Section and Trading Platform. The Provider will confirm receipt of the request via email, officially terminating the contract. Under these circumstances, the Customer forfeits any right to refunds of fees or other expenditures previously paid.

4.2 Severe Violations

In cases where the Customer engages in prohibited practices of a serious nature, the Provider reserves the right to restrict access to all Services and terminate the Customer’s account immediately, without compensation. This may occur without prior warning, and no refunds will be issued for any fees paid. Additionally, any payments made for add-ons will not be refunded, regardless of eligibility. The Provider retains full discretion in determining the severity of the violation and the appropriate corrective action.

4.3 Activation of Services

Upon paying the fee for the BloomFunded Challenge program, the Customer will receive login data. By executing the first trade, the Customer acknowledges and agrees that the Provider completes the Services before the withdrawal period ends, thereby waiving the right to contract withdrawal.

4.4 Non-Activation

If the Customer does not activate the BloomFunded Challenge within 30 calendar days, access will be suspended. Renewal of access can be requested via email to support@bloomfunded.com, subject to any applicable terms.

4.5 Disputes and Chargebacks

In the event of an unjustifiable fee dispute or chargeback initiated by the Customer, the Provider reserves the right to cease services and deny future services at its discretion.

4.6 Refunds

A refund request must be made within 7 days of registration if no trading activity has occurred. Once trading commences, fees become nonrefundable, with no provision for full or partial refunds.

Section 5 – Payout and Withdrawal Policy

Payouts are every 14 days and are capped at a maximum of 5% of the initial balance, giving you a withdrawal capacity of 10% per month.

Section 6 – Dispute Resolution Policy

6.1 Pausing Accounts for Disputes

In the event that the Customer raises a dispute regarding a transaction made to BloomFunded, the trading account associated with the disputed transaction will be paused as per our BloomFunded Challenge Terms.

6.2 False Disputes

BloomFunded reserves the right to permanently suspend any Customer found to have raised a false dispute. A false dispute is defined as a situation where the services provided by BloomFunded were delivered without issue, yet the Customer initiated a dispute against the transaction.

6.3 Reactivation of Disputed Accounts

If the Customer wishes to reactivate a trading account for which a dispute was raised, they must first withdraw the dispute and provide BloomFunded with official proof of the dispute withdrawal. Upon receipt of this proof, our Risk Management Team will verify the provided documents. Once the verification process is successfully completed, the trading account will be reactivated.

6.4 Verification Timeline

Please note that the verification of dispute withdrawals and the subsequent account reactivation process may take 30 to 45 business days. The Customer is strongly encouraged to contact our support team before initiating any disputes to address their concerns promptly.

6.5 Contact for Issues

If the Customer experiences any issues related to their trading account or transactions, they are advised to reach out to the support team for assistance. For any further queries, please reach out to our Support Team via our designated Intercom channel or support@bloomfunded.com.

Section 7 – Entire Agreement

The Provider’s decision not to exercise or enforce any right or provision of these Terms shall not be deemed a waiver of such right or provision. Any waiver of rights under these Terms will be effective only if it is in writing and signed by the Provider. These Terms, along with any policies or operating rules posted by the Provider on this site or in relation to the Service, constitute the full and exclusive understanding and agreement between the Customer and the Provider. This agreement governs the Customer’s use of the Service, overriding all prior or contemporaneous agreements, communications and proposals, whether oral or written, between the Customer and the Provider (including, but not limited to, any prior versions of the Terms). Should any ambiguity or question regarding intent or interpretation arise, it shall be resolved in a neutral manner and not automatically against the drafting party. This approach does not override any statutory rights the Customer may hold under applicable consumer protection laws that are not subject to contractual waiver.

Section 8 – Governing Law

These Terms, as well as any additional agreements under which the Provider gives the Customer Services, are regulated and construed in accordance with the Provider’s legal jurisdiction, i.e. the United Arab Emirates.

Section 9 – Local Law

The Customer is advised to be fully aware of and comply with all local laws and regulations pertaining to their participation in the Services. The Customer acknowledges that they are engaging in the Service at their own risk and assumes all responsibility for their participation. By using the Services, the Customer affirms they are over the age of 18 years and acknowledges that the Provider is not responsible for any actions taken by the Customer that may violate local laws. Any such violations are the sole responsibility of the Customer.

Section 10 – Changes to BloomFunded Challenge Terms

The Provider reserves the right to modify, update or revise these Terms at any time at its sole discretion. Any such changes will be communicated to Customers through appropriate means, including but not limited to notifications on the website or via email. The Customer is responsible for reviewing the Terms regularly to stay informed of any updates. By continuing to access or use the services after such changes have been communicated, the Customer agrees to be bound by the revised Terms. It is the Customer’s responsibility to review and understand the current Terms before engaging in any Challenges or using any of the Services provided.

Section 11 – Contact Information

Office Address: Building A1, Dubai Digital Park, Dubai Silicon Oasis, Dubai, UAE

Email: support@bloomfunded.com