A prop firm challenge reset is the option to restart a challenge from the beginning after failing it or after choosing to abandon the attempt. The account balance returns to its original starting value, progress on the profit target resets to zero, the minimum trading days counter starts fresh, and any drawdown breach or rule violation is cleared.

Prop firms use resets in two main ways. Some offer a post-failure reset that becomes available after a trader breaches a rule and fails the challenge. The trader pays the reset fee and receives a new attempt at the same account size. Others also allow voluntary resets during an active challenge, which lets a trader who is deep in drawdown or off track abandon the current attempt and start over rather than continuing to trade toward a likely failure.

Reset fees typically run at 30% to 50% of the original challenge price, which makes the reset noticeably cheaper than repurchasing at full price. Terms vary by firm.