# FAQ - Challenge FUNDING

**How do I get promoted to the next level?**\
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**POINTS:** On each FUNDED challenge, you will have a points target to be achieved. Points are earned by your trading activity over time and a combination of your PnL.\
\- A minimum PnL does apply - You will be unable to achieve promotion before your PnL has exceeded +15% of your original balance, regardless of your trading activity.\
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**RAPID Promotion:** By overachieving the PnL target - you will earn points exponentially, or lose them if your total trading balance suffers losses. This mechanism ensures a trader can quickly move through the ranks with exceptional performance.\
\- There is no minimum trading time required. Unlike FUNDED V1, promotion is earned through performance no matter how quickly you may achieve it. Once you have exceeded your points target, you may instantly cashout 80% of your profit and move up to the next level.\
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**How may I fail my challenge?**\
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**INACTIVITY:** When you start your challenge you are allotted a minimum of 7 days, this will tick down while inactive - if the timer reaches Zero, your challenge will end and you may withdraw your funds less a small borrow fee on the capital. Each trade earns your more time on your clock. \
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The system allows traders to manage their own time dynamically, by storing up a lot of time the trader can manage their own breaks and non trading days.\
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The timer system protects the vault liquidity from becoming too idle, while ensuring traders are not having to wait for an arbitrary period of time before moving up to the next FUNDING level.\
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**NOTE**: In the event a trader is not active and their timer expires, even without any trades taken, an inactivity penalty will be deducted from available profit and/or collateral, with the remainder returned.\
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**DRAWDOWN** - Your account with  have a maximum drawdown limit, this is the maximum your account may be in negative PnL before it is liquidated. Drawdown is calculated across all open positions.\
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Upon drawdown limit being hit, losses will first be deducted from trader's collateral and then any remaining losses will be covered by the funds from FUNDED.


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