> For the complete documentation index, see [llms.txt](https://hashhedge.gitbook.io/hashhedge-user-guide/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hashhedge.gitbook.io/hashhedge-user-guide/en/introduction/challenge-type.md).
# Challenge Type
Hash Hedge offers two challenge types — the **1-Stage Challenge** (new) and the **2-Stage Challenge**. Both lead to a funded account with real payouts; they differ in how many evaluation stages you pass, and in their targets, loss limits and fees. Pick the type and account size that fit your experience and budget.
Choosing a Challenge
***
## 1-Stage Challenge
A single evaluation stage, then a funded account — the fastest route to funding, with a higher profit target and tighter loss limits.
**Available account sizes:** $5,000 · $10,000 · $25,000 · $50,000 · $100,000 — $10,000 is the most popular.
**Challenge rules, stage by stage**
| Rule | Stage 1 (Evaluation) | Funded |
| -------------------- | -------------------- | --------------------------- |
| Profit target | 10% | — |
| Max daily loss | 3% | 3% |
| Max overall drawdown | 6% | 6% |
| Minimum trading days | 5 | — |
| Trading period | Unlimited | Unlimited |
| Max leverage | 1:5 | 1:5 |
| Profit share | — | 80% (90% with Profit Split) |
## 2-Stage Challenge
Two evaluation stages, then a funded account. Lower profit targets and wider loss limits, spread across two stages.
**Available account sizes:** $5,000 · $10,000 · $25,000 · $50,000 · $100,000 · $150,000 — $25,000 is the most popular, $150,000 the best value.
**Challenge rules, stage by stage**
| Rule | Stage 1 (Evaluation) | Stage 2 (Verification) | Funded |
| -------------------- | -------------------- | ---------------------- | --------------------------- |
| Profit target | 8% | 6% | — |
| Max daily loss | 5% | 5% | 5% |
| Max overall drawdown | 10% | 8% | 8% |
| Minimum trading days | 5 | 5 | — |
| Trading period | Unlimited | Unlimited | Unlimited |
| Max leverage | 1:5 | 1:5 | 1:5 |
| Profit share | — | — | 80% (90% with Profit Split) |
## Which type should I choose
Both types use **1:5** leverage and have no time limit. The **1-Stage Challenge** reaches funding faster — a single evaluation stage — but asks for a higher **10%** target within tighter **3%** daily / **6%** overall loss limits. The **2-Stage Challenge** spreads lower targets (**8%** then **6%**) across two stages with wider **5%** daily / up to **10%** overall limits. Within a type, the percentages are the same on every size, so pick the account you're comfortable managing within its loss limits — a larger account scales targets and limits in dollars but keeps the same percentages. New to Hash Hedge? A smaller plan is a low-cost way to learn the platform.
Next: [How to buy a Challenge](/hashhedge-user-guide/en/introduction/how-to-enroll-a-challenge.md).
***
## Rules, Stages and Loss Limits
Both challenge types follow the same principles: pass the profit targets, stay inside the loss limits, and trade fairly. The targets and limits below describe the **2-Stage Challenge**; the **1-Stage Challenge** uses a single evaluation stage — profit target **10%**, max daily loss **3%**, max overall drawdown **6%**.
***
## The two stages
The **2-Stage Challenge** has **Stage 1** and **Stage 2**. In each one you reach a profit target while staying within the loss limits. After Stage 2 you move to the **Trader** (funded) stage. There is no time limit on any stage.
## Targets and limits by stage
* **Stage 1 — Evaluation:** profit target **8%**, max daily loss **5%**, max overall drawdown **10%**, minimum **5** trading days.
* **Stage 2 — Verification:** profit target **6%**, max daily loss **5%**, max overall drawdown **8%**, minimum **5** trading days.
* **Funded (Trader):** no profit target, max daily loss **5%**, max overall drawdown **8%**.
All percentages are measured against your account size. For example, on a **$25,000** account the Stage 1 target is **$2,000** (8%), the daily loss limit is **$1,250** (5%), and the max overall drawdown is **$2,500** (10%). Leverage is capped at **1:5** and there is no time limit.
## Minimum trading days
Each stage requires a **minimum of 5 trading days** — five separate days on which you opened at least one position. It's a minimum, not a maximum: with no time limit, you can take as many days as you need, and a day with no opened position simply doesn't count.
## Loss limits
Two limits apply on every account:
* **Daily loss limit** — the loss level for a single trading day that, once reached, ends the Challenge. It is not an amount you are free to lose, but the threshold that fails the account.
* **Total loss limit** — the overall account loss level that, once reached, ends the Challenge.
If you breach either limit, open positions are closed automatically and the Challenge is permanently failed.
{% hint style="info" %}
Your dashboard always shows the exact equity level at which the Challenge would fail, so you can see how much room you have left at a glance.
{% endhint %}
Daily and max loss on the dashboard, with the level that fails the Challenge
### How daily loss is calculated
**Daily loss = current Equity − Balance at the start of the day**
Balance at the start of the day is your balance including all closed positions as of the start of the day.
* **Balance** — your account including all closed positions and fees.
* **Equity** — your account including all open and closed positions.
The daily loss limit **updates at 00:00–00:10 UTC+4**. Open positions count toward Equity, so they affect your limits even before you close them.
How the daily loss limit works
## Trading rules
* **Futures only.** Spot trading is not available.
* **Leverage** up to **1:5**.
* A **trading day** is any day on which you opened at least one position.
* **Stop Loss is not required**, but you must stay within the limits. If a limit is hit, positions are force-closed.
* You can run **multiple Challenges at once** up to the funded stage. On the funded stage you can trade only one Challenge of each denomination (account size) — for example, a one-phase $100,000 and a two-phase $100,000 count as the same denomination, so you can trade only one of them.
## What's not allowed
* Arbitrage, manipulation, and other forms of unfair trading.
Aside from the above, any trading strategy is allowed on both the Challenge and the funded account.
