Lark Funding

FREQUENTLY ASKED QUESTIONS

All the rules and guidelines you need to successfully pass the
Evaluation and become a Funded Lark Trader.

Hidden Rules
There are absolutely ZERO hidden rules with Lark Funding. If you don't see a rule, that's because it doesn't exist.
How fast do I receive my Evalution Account?

All account credentials are emailed immediately upon purchase so you can get going right away. If for whatever reason you haven't received them after 30 minutes, please email our support team at info@larkfunding.com and we'll sort it out for you.

How fast do I receive my Funded Account?
Once you pass your Assessment, you will receive an email from from Gabriella from Deel (gabriella@deel.support), providing you with instructions on how to access and complete your Trader Agreement. Once you complete the Agreement and all documents are provided, your funded account will be created, funded and issued to you usually within 24-48 hours.

Upon passing your Assessment, you will receive an email from Gabriella from Deel (gabriella@deel.support) with instructions on how to access and complete your Trader Agreement. Once the agreement is completed and supporting Know Your Customer documents provided, your funded account will be created, funded and issued to you typically within 24-48 business hours.
When does the Evaluation begin?
Your Evaluation begins immediately upon your purchase going through. Therefore please keep in mind the 30 inactivity rule and ensure that you place at least one trade every 30 days to keep your account active.
What is the difference between a Hard Breach and Soft Breach rule?

soft breach means that all trades that violated the rule will be closed. However, you can continue trading your Assessment or Funded account.

hard breach means that you violated either the Daily Loss Limit or the Max Trailing Drawdown rule. In the event you have a hard breach, you will fail the Assessment or have your Funded account taken away.

How do you calculate the 4% Daily Loss Limit?

The Daily Loss Limit is calculated based on the previous day’s end of day (5 pm EST) balance. 

Example:  If your prior day’s end-of-day balance was $100,000 you would breach the Daily Loss Limit of 4% should your equity the next day fall to $96,000. 

How do you calculate the 5% Max Trailing Drawdown?

The Maximum Trailing drawdown is the maximum your account can drawdown before you would hard breach your account.  When you open the account, your Max Trailing Drawdown is set at 5% of your starting balance.  This 5% trails your closed trading balance until you reach 5% profits in your account. Once you have achieved 5% in your account the max trailing locks in at your starting balance, and no longer trails your account.

This is both to protect our capital and allow you to infinitely grow your account along with your buffer, to make your trading more and more stress free.

Example: If your starting balance is $100,000, you can drawdown to $95,000 before you would violate the Maximum Trailing Drawdown rule. Then for example, if you grow your account to $102,000 in closed balance, your new Maximum Trailing Drawdown would be $97,000. If you then grow your account to $115,000, your Maximum Trailing Drawdown is locked in at your initial starting balance ($100,000). This means you can experience a 15% drawdown before you would hit your Maximum Drawdown. Do note that the 4% Daily Drawdown will continue to be in play at all times.

Why do I have to place a stop loss on trades?

Because it's smart and prudent risk management! Which of course, is the key to longevity in trading. If you fail to place a stop loss at the time of placing an order or executing a trade, our system will automatically close the trade.

This is only considered a soft breach rule, so you will be able to continue trading your account.

Can I hold positions over the weekend?

For an additional 10% of their challenge fee, traders can select the option upon checkout to hold trades over the weekend.

If this option is not selected, because of unexpected events that may take place over weekends, we require all trades to be closed by 3:45 pm EST on Friday.

Any trades left open after this time will automatically be closed.  Note, this is only a soft breach and you will be able to continue trading once the markets reopen.

How many lots can I trade? (Max Lots with Risk)

Below are the maximum open lots across all pairs that a trader can have at any
given time with 10:1 leverage.

$50K - 5 lots with risk
$100K - 10 lots with risk
$250K - 25 lots with risk
$500K - 50 lots with risk
$1,000,000 - 100 lots with risk

With 20:1 leverage, the maximum allowed lots with risk is as follows:

$50K - 10 lots with risk
$100K - 20 lots with risk
$250K - 50 lots with risk
$500K - 100lots with risk
$1,000,000 - 200 lots with risk

Once your trade is in profit and you've moved your stop loss to either breakeven or
in profit, the trade is no longer considered to be running with "open risk" and you
can therefore open additional trades with additional lots.

For example, on a $500,000 account, if you take a trade with 50 lots, once your stop
loss is at breakeven or in profit, you can execute a second trade with an additional
50 lots, for a total of 100 lots. So on and so forth.

If you execute trades that exceed that maximum allotted lots, our system will
automatically liquidate all trades that currently carry risk.

Do note, margin and leverage requirements still apply. So, even though these are
the maximum lots that can be traded, it is possible based on the leverage of the
account that you may not be able to trade up to the maximum depending on the
specific trade.

Is there a breach for inactivity?

We require all traders to execute at least one trade every 30 days on their account or it will be considered inactive and your account will be breached.

Are there prohibited trading strategies?

High-Frequency Trading
(HFT) High-Frequency Trading (HFT) is defined as the use of advanced computer algorithms and high-speed telecommunications networks to execute a large number of trades in a fraction of a second.

Lark Funding prohibits HFT, as it can result in market manipulation, unfair advantages, and instability in the market. Any trader caught engaging in HFT will breach the Lark Funding Terms of Use and lose their trading privileges on our platform. 

We expect all traders to use our platform fairly and honestly and to comply with all laws, regulations, and the Lark Funding Terms of Use.

Martingale Trading

The Martingale trading strategy is a risky investment method in which the investment amount is increased after each loss, with the expectation that a winning trade will recoup all previous losses and yield a profit. This strategy is considered gambling and can result in significant drawdowns and the loss of all capital if a trader experiences a prolonged losing streak. In theory, this strategy is infallible, but in practice, it is only feasible with unlimited capital. Lark Funding has established a predetermined maximum drawdown level, and all traders must design their strategy around this pre-defined maximum risk level.

Having a well-defined risk management strategy and avoiding placing all bets on a single trade is critical. As a result, engaging in this trading activity is a violation of Lark Funding's Terms of Use.

 

How long does it take to receive my Funded Account?

We work with a company called Deel to issue all trader agreements and process profit withdrawals. Once you pass your Assessment, you will receive an email from Gabriella from Deel (gabriella@deel.support) with instructions on how to access and complete your Trader Agreement. 

Once the agreement is completed and all documents provided, your Funded account will be created, funded and issued to you typically within 24-48 business hours.

And then you're off to the races!

Once I pass the Evaluation am I provided with a demo or live account?

In order to best serve our clients, trading in all stages of the cooperation between Lark Funding and the client is via a demo account.

To avoid any confusion, please keep in mind that a Funded Account is a fully simulated account with real market quotes from liquidity providers. The trading data is sent off to a partnered proprietary trading firm where trades are copied at their own discretion using aggregated orders using proprietary risk management techniques.

What are the rules for the Funded account?

The rules for the Funded Account are exactly the same as your Assessment account.  However, with a Funded Account, there is no cap or limitation on the profits you can generate. The sky's the limit!

If I have a hard breach in my Funded account and there are profits, do I forfeit those profits?

The short answer is no! We will still provide you with the profits you've earned.

If you have profits in your Funded account at the time of a hard breach, you will still receive your portion of those profits.

For example, if you have a $100,000 account and you grow that account to $110,000.  Should you then have a hard breach we would close the account.  Of the $10,000 in profits, you would be paid your 75% portion ($7,500).

How do I withdraw my profits?

When you are ready to withdraw your hard-earned profits, please send an email to our support team (support@larkfunding.com) with the amount you would like to withdraw. We will then post your profit share into your Deel account, which you can withdraw via any of the available and variety of methods they offer.

When can I withdraw profits from my Funded account?

You can request your first profit withdrawal 30 days after receiving your Funded Account.

At the time of any withdrawal request, we will also withdraw our share of the profits as well.

Important: Your drawdown is permanently locked in at your funded account's original value (in this case $100,000), the drawdown does NOT reset after withdrawal. If you were to grow your $100,000 account to $115,000 and you withdrew $15,000, you will have breached the maximum Trailing Drawdown Rule (please refer to above).

Your first withdrawal or being 5% in profit will lock in your drawdown to the original balance of the starting account.

This means if you are at $115,000 and you withdraw $10,000, you will be paid out and your funded account will be active and can still be traded. $5000 becomes your "max" drawdown since the drawdown is locked at the original $100,000. This also means that if you compound $100,000 to $400,00, you may request a withdrawal of $250,000 instantly and will now have a $50,000 buffer for your drawdown.

Is the challenge fee refundable?

The challenge fee is not currently refundable.

How often can I request a profit withdrawal?

Funded Traders can request a profit withdrawal every 30 days.

What happens to my drawdown when I request a withdrawal?

The 5% trailing drawdown is removed and your maximum drawdown locks in at your starting balance when you grow your account by 5% or request a withdrawal. Whichever comes first. 

What Platform can I trade on?

Lark Funding's technology management is currently integrated with the MT4 and MT5 platforms. These platforms, along with pricing and execution are provided by our broker, EightCap.

Once funded, you can trade using Tradingview but only if you are using MT5, so please make sure when signing up you select MT5 if this is something you would like to do once funded.

Yes, we're hoping to provide cTrader as soon as possible!

Can I trade with Tradingview?

Once funded, you can use Eightcap's Tradingview integration and execute your trading on Tradingview.

Please keep in mind this is only available once funded and is only compatible with MT5, so please select MT5 when signing up for your Evaluation.

Is there a scaling plan?

We currently don't offer a scaling plan.

What products can I trade?

If EightCap offers it, you can trade it! This includes FX pairs and CFD Indices, Metals, Equity Shares, and Cryptocurrencies.

You can learn more about their platform here: https://www.eightcap.com/en/

What is the leverage?

All standard accounts come with 10:1 leverage on Forex, Metals and Indices. . All traders have the option to double their leverage to 20:1 upon checkout for an additional 25% of the challenge fee.

The standard leverage on Equities is 5:1 and Cryptos are 2:1

On a $100,000 account with 10:1 leverage, traders will be able to open a maximum of 10 lots. When doubling their leverage to 20:1, 20 lots with risk will be allowed to be opened by the trader.

Can I trade during news events?

Yes! There are no restrictions regarding any news events.

Can I use an Expert Advisor?

Yes, we do allow EA's except those that are designed for HFT or arbitrage trading.

Are there any countries we cannot trade from?

Due to OFAC sanctions, we are unable to offer services with traders residing in the following countries: Cuba, Iran, Lebanon, Syria, North Korea, Libya, Sudan, Somalia.

What is the minimum age I must be to be part of your program?

You must be at least 18 years of age to purchase an assessment. Sorry ambitious teens!

Where do I track the progress of my account?

Upon purchasing an Assessment, you will receive access to a trader dashboard where you can monitor your Assessment and Funded accounts.  The dashboard is updated every time we calculate metrics, which occurs roughly every 60 seconds. It is your responsibility to monitor your breach levels accordingly.

With great power comes great responsibility! 

What are the trading hours?

Our trading hours are set by EightCap.  We do not have any control over the trading hours. You can see the trading hours for each product by right-clicking on any product in the Market Watch window of the MT4 or MT5 platform and selecting Specifications from the dropdown menu.

Please note that holidays can have an impact on available trading hours.

Additionally, pursuant to the no-holding trades over the weekend rule, we close all open trades at 3:45pm EST on Fridays.

Am I trading real money?

After a client becomes a Funded Trader, he/she will be provided with a demo account with virtual funds. For the avoidance of any confusion, please keep in mind that a Funded Account is a fully simulated account with real market quotes from liquidity providers. The trading data is sent off to a partnered proprietary trading firm where trades are copied at their own discretion using aggregated orders using proprietary risk management techniques.

Do your accounts charge commissions?

We use the RAW accounts from EightCap and these accounts have commission charges for Forex and Equity Share CFDs. 

The other products, such as commodities and indices do not carry a commission.

How will I see the charge on my statement?

Charges come across in the name of Lark Funding Inc.

How are taxes handled?

When trading a Funded account for Lark Funding, you are treated as an independent contractor.  As a result, you are responsible for any and all taxes on your profit share.

Can’t find your answer? No problem! We pride ourselves on having the best customer service in the industry. Just contact us at

Support@larkfunding.com

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