Rule 1: Payout Criteria

At Funded7, Rule 1 (Consistency) is not a set of violation triggers, but a Quality Standard for payouts. It is designed to prove that your profits are the result of reproducible “skill” rather than a lucky streak.

Rule 1A Trade Size Consistency Rule

To prevent sudden “all-or-nothing” gambles where risk is scaled irresponsibly, we implement a Dynamic Statistical Criterion based on your own trading history.

Determining the Allowable Threshold

The system compares two statistical benchmarks and adopts the stricter (lower) value as your current “Allowable Threshold.”

Allowable Threshold = MIN (Median Criterion, IQR Criterion)

The Calculation Logic

The system extracts the Notional Value of every trade, sorts them in ascending order, and calculates the following:

① Median Criterion (Judgment by Middle Value) We look at the exact middle value of your trade size history.

  • Formula: Median × 2.5

  • Intent: We allow up to 2.5 times your “standard” trading size.

② IQR Criterion (Identification of Statistical Outliers) We use a statistical method to identify “abnormal spikes” (outliers) based on the dispersion of your data.

  • Formula: Q3 + (1.5 × IQR)

  • Definitions:

    • Q3 (3rd Quartile): The 75th percentile of your notional values.

    • IQR (Interquartile Range): The difference between Q3 and Q1 (25th percentile).

  • Intent: This accounts for your typical “volatility in trade size” and flags trades that fall outside that range.

What is Notional Value?

We do not judge by “Lots” alone, but by Notional Value to standardize the actual weight of responsibility across all instruments.

Why not Lots? 1 lot of EUR/USD and 1 lot of Gold represent vastly different market exposure. In the 2026 market environment, 1 lot of Gold is worth approximately 5 times more than 1 lot of USD/JPY.

Real-Life Calculation Example (Violation Case)

Scenario:

You have closed 50 trades so far, mostly 1.0 lot on EUR/USD.

  • Your Statistical Data:
    – Median: $100,000
    – Q3 (Top 25% line): $110,000
    – IQR (Dispersion): $20,000
  • Threshold Calculation:
    – Median Criterion: $100,000 × 2.5 = $250,000
    – IQR Criterion: $110,000 + (1.5 × $20,000) = $140,000
    – Final Allowable Threshold: MIN($250,000, $140,000) = $140,000
  • Current Trade:
    – XAU/USD (Gold) 1.0 lot
    – Notional Value: $230,000 (assuming price is $2300)
  • Verdict:
    – $230,000 (Current) > $140,000 (Threshold)
    → VIOLATION (Outlier) ❌

Rule 1B Activity Standards

This rule ensures that your evaluation wasn’t finished by a single lucky day, but through consistent market participation.

To qualify for Pro promotion or Payouts:

  • Minimum Trades: At least 10 closed trades. This proves your strategy is not dependent on just one or two instances.

  • Minimum Trading Days: At least 3 Active Trading Days.

    • Definition: An “Active Trading Day” is a day where at least one new order or one closure is executed.

Rule 1C Profit Quality (QC) Rule

Criterion: QC Score ≧ 0.90

This test proves you are not a “One-Hit Wonder.” It measures how your “2nd and 3rd Best Trades” compare to your “Single Best Trade” (or trade cluster).

Definition of “Trade Cluster”: For this calculation, multiple trades opened on the same instrument closely or relatively close together are counted as ONE single trade. This prevents splitting a single large gambling position into smaller trades to bypass the rule.

Formula
QC = (Profit of 2nd Best Trade + Profit of 3rd Best Trade) ÷ Profit of Max Trade

A score of 0.90 or higher is required to pass. This proves that your best win wasn’t an anomaly—you have achieved comparable wins at least two other times.

Good Example (Pass):

  • Max Trade: +$10,000
  • 2nd Best: +$5,000
  • 3rd Best: +$4,000
  • Calc: ($5,000 + $4,000) ÷ $10,000 = 0.90 (Pass ✅)

Bad Example (Fail):

  • Max Trade: +$10,000 (Lucky news spike)
  • 2nd Best: +$2,000
  • 3rd Best: +$1,000
  • Calc: ($2,000 + $1,000) ÷ $10,000 = 0.30 (Fail ❌)
  • Verdict: The profit relies too heavily on a single lucky trade.

Consequence of Violation

Not meeting Rule 1 is NOT a violation and does not result in a “Strike.” We simply wait for you to further prove your consistency.

Case A: Upon Passing Challenge (Phase 2) Due to system constraints when a target is hit (account locking):

  • Action: You will be placed in a Silver Funded Account (Risk 2.0%).

  • Remedy: Successfully complete 3 payouts in the Silver environment to upgrade to a regular Pro Account.

Case B: During Payout Request on Pro Account

  • Action: The payout will be held (deferred).

  • Remedy: Simply continue trading. As you add more consistent trades, your data history (Median/QC) will normalize. Once your metrics are “cured” and back in the healthy range, the payout will be released immediately.