# FLASH FUNDING

Very different from completing challenges and growing your account, FLASH FUNDING allows you to leverage your capital for an instant loan from the FUNDED vault, with you keeping 90% of the profits you generate. The traders collateral to FUNDING ratio will dictate their drawdown limit.\
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FLASH FUNDING Structure\
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**Collateral-Funding Relationship**

* Traders deposit USDC as collateral and receive additional funding
* Flexible collateral:account size ratios (e.g., 1:9, 1:4)
* Example: $100 collateral → $1000 account (1:9 ratio)
* Example: $500 collateral → $2500 account (1:4 ratio)

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**Drawdown Limits**

* Drawdown limit is set at initial balance minus collateral deposit.
* Example: $1000 account with $100 collateral → drawdown limit at $900 (10% drawdown)
* Example: $2500 account with $500 collateral → drawdown limit at $2000 (20% drawdown)
* Higher collateral ratio = higher percentage drawdown allowance

**NOTE:** By selecting a higher FUNDING to collateral ratio, the trader will have a lower drawdown limit in % - While multiplying the potential for profit, that trader carries a higher risk of liquidation.<br>

**TIME Penalty**

* In the event a Trader accesses FUNDS through FLASH FUNDING and is idle, they will accrue a time penalty that will be applied in USDC upon closure of their account.
* Trading volume will earn a generous amount additional time on a linear basis. Example: A trader has a total of $900 in FUNDING (for $100 in collateral) and uses their balance OF $1,000 to open a trade at 20x leverage. Total volume for open + close = $40,000. This particular trade would earn around 24 hours extra time for  the trader.

**How does a FLASH FUNDING challenge end?**

* If the Trader exceeds their allowed drawdown, their account will be closed.
* If the Trader runs out of available time, due to being idle, their account will be closed and their collateral returned - Less any time penalty.
* The Trader may close the challenge at any time, while withdrawing their available collateral + profit share.&#x20;

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CASHOUTS\
The Trader may cashout out 90% of profits generated at any time and continue trading. Assuming they have ample time&#x20;


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