Next Level Funded's New 1 & 2 Step Pay After You Pass Models Explained

The proprietary trading industry has long operated on a high-risk model for traders: pay a largeupfront fee, fail the challenge, and lose your money. In 2026, Next Level Funded (NLF) hascompletely disrupted this standard with the introduction of the Pay After You Pass model.

This structure drastically lowers the barrier to entry, allowing traders to prove their skills withminimal upfront financial risk. In this guide, we break down exactly how the $7.77 upfront modelworks, the difference between the 1-Step and 2-Step options, and why this is the mosttrader-friendly evaluation in the market today.

How the "Pay After You Pass" Model Works

The concept is simple: you should not have to risk hundreds of dollars just to prove you cantrade. NLF's Pay After You Pass model splits the evaluation cost into two stages:

1. The Upfront Fee ($7.77): You pay a flat $7.77 to start the evaluation phase. This appliesto all account sizes, whether you are taking a $10,000 challenge or a $200,000challenge.
2. The Activation Fee (Paid Later): If—and only if—you successfully hit the profit targetsand pass the evaluation, you pay the remaining activation fee to unlock your live fundedaccount.

If you fail the evaluation, your total loss is just $7.77.

Pricing Tiers: Upfront vs Activation

The activation fee scales based on the account size you choose, but the upfront cost remains locked at $7.77 across the board.

1-Step vs 2-Step Pay After You Pass Rules

NLF offers the Pay After You Pass model in both 1-Step and 2-Step formats, allowing traders to

choose the evaluation style that best fits their risk management strategy. Both models feature

On-Demand payouts, meaning you do not have to wait 14 or 30 days to withdraw your profits

once funded.

1-Step Pay Later Account Rules

The 1-Step model is designed for aggressive traders who want to reach funded status as

quickly as possible. It requires hitting a single profit target with slightly tighter drawdown limits.

● Profit Target: 7%

● Daily Drawdown: 4%

● Overall Drawdown: 8% (Static)

● Reward Cycle: On-Demand

2-Step Pay Later Account Rules

The 2-Step model is the industry standard, offering wider drawdown limits in exchange for a

two-phase evaluation process. It is ideal for conservative traders focused on capital

preservation.

● Profit Target: Phase 1: 6% | Phase 2: 5%

● Daily Drawdown: 5%

● Overall Drawdown: 10% (Static)

● Reward Cycle: On-Demand

Why Static Drawdown Matters

Both the 1-Step and 2-Step Pay Later accounts utilize a Static Overall Drawdown. Unlike

trailing drawdowns that follow your highest account balance and choke out your trades, a static

drawdown is locked to your initial starting balance. If you start with a $100,000 account and a

10% static drawdown, your absolute loss limit is always $90,000, regardless of how much profit

you make.

Why This Model is Disrupting the Prop Firm Industry

Traditional prop firms rely heavily on evaluation failure fees to generate revenue. By charging

$500+ upfront for a $100k challenge, they profit massively when the statistical majority of

traders fail.

By dropping the upfront cost to $7.77, Next Level Funded has shifted the risk entirely. NLF only

makes substantial revenue when traders pass and pay the activation fee, which inherently

aligns the firm's success with the trader's success.

Key Advantages of Pay After You Pass:

1. Risk Mitigation: Test new strategies in a live-market evaluation environment for less than the cost of a coffee.
2. Psychological Relief: Trading without the pressure of a massive upfront fee often leads to better execution and higher pass rates.
3. Capital Efficiency: Keep your trading capital in your own bank account until you have actually proven you can pass the challenge.

Get Started for $7.77 Today

There has never been a lower barrier to entry in the prop trading space. Whether you prefer the

speed of a 1-Step challenge or the wider drawdowns of a 2-Step evaluation, you can start

trading a Next Level Funded account today for just $7.77.

Start Your Pay After You Pass Evaluation Now

Author: Spencer Todd, Founder of Next Level Funded