PipFarm Launches "Pay With Profits": Start Challenges with Minimal Upfront Costs

PipFarm has introduced a disruptive new payment model called "Pay With Profits" (PWP). This system allows traders to start an evaluation process by paying only a small fraction of the total cost, deferring the remaining balance to be paid from future profits generated in the funded account. Under the "no payout, no fee" premise, the firm aims to align its interests with those of the trader.

How the PWP Model Works

The process is structured into four key stages that link the final cost to the trader's performance and risk management:

• Reduced Entry Fee: Access to challenges starts as low as $7 USD. This is the only out-of-pocket expense for the trader.
• Risk Tier Assignment: During the evaluation phase, actual trading behavior (max risk and max loss) determines the user's Risk Tier (from Tier 1 to Tier 5).
• Funded Account Rules: The risk limits maintained during the challenge become the hard limits for the funded account.
• Payment from Profits: The remaining fee is automatically deducted from the first withdrawal. From that point on, the account continues to operate with the assigned profit share permanently.

The 5 Risk Tiers

Risk management during the challenge defines both the final fee and the trader's profit percentage:

Tier 1 (Very Low Risk)

For traders with a Max Loss ≤ 2% and Max Risk ≤ 0.5%. This results in a fee of 1.0% of the balance and a 90% profit share.

Tier 3 (Moderate)

For a Max Loss ≤ 6% and Max Risk ≤ 1.5%. This carries a 2.0% balance fee and a 70% profit share.

Tier 5 (Very High Risk)

For strategies with Max Loss > 8% or Max Risk > 2%. This carries a 3.0% balance fee and a 50% profit share.

Key Differences from Traditional Models

Unlike standard upfront payments, the PWP model eliminates high initial financial risk. If the trader fails the challenge or does not reach a payout, they never pay the rest of the fee. This model coexists with PipFarm's classic system and can be selected during the checkout process for Consistency, Endurance, and Classic modes on the cTrader platform.