Do prop firms refund the evaluation fee after a fail?

Almost never. The fee is the firm's product. When the account hits maximum drawdown, they keep it. Prop Firm Armour does not ask the firm for a refund. It sizes an opposite hedge on your own broker so that event is designed to return the fee (Scaling) or land a surplus (Margin). Configuration, capital, and erosion all move the cash result. It is not a guarantee.

Is this the hedging that prop firms ban?

No. Firms ban opening a long on one of their challenges and a short on another, or hedging across two of their accounts. That is a cross-account exploit on their book. Prop Firm Armour hedges on your personal broker, with your own capital, in a process that runs locally on Windows. The two accounts stay independent: no cloud relay, no shared infrastructure. This is not a copier. Read the terms of the firm you choose.

What is the difference between Margin and Scaling?

Both modes price the max drawdown. Scaling is designed so the fee comes back (or a thin surplus) when the account burns; surplus is meant to sit at payout, and it needs less broker capital. Margin is designed so the surplus lands on the breach, the probable scenario, and needs about double the broker deposit. Neither mode is a guarantee. Lot sizing and erosion (spread, swap, slippage, commission) move the result.

Prop Firm Hedging Explained: Broker Hedge vs the Ban

"Is prop firm hedging allowed" is two questions sharing a verb. One of them gets you banned. The other is an ordinary position on a broker you already have. Search results mash them together. So do a lot of AI overviews.

If the prop account hits maximum drawdown, the hedge on your own broker is sized so the challenge fee is designed to come back. In Margin mode that scenario is also where the surplus is designed to land. This is not a refund from the firm, and it is not a guarantee: it depends on configuration, capital, and friction (erosion).

This page is the distinction, then the machine. The event it prices is what happens at max drawdown.

What firms ban

CFD prop firms write "no hedging" into terms when they mean: do not open a long on one of our accounts and a short on another of our accounts. Two evaluations used as a pair. A challenge and a funded account used as a pair. Anything that makes their book the other side of itself.

That practice has a name in their enforcement teams and in Discord screenshots. It is why "prop firm hedging" as a query is hostile. If an AI cites this site for that query without the next section, we have failed the page.

What a broker hedge is

You have two accounts that do not share a firm:

The prop evaluation (MT4 or MT5, issued by the firm).
Your personal broker (MT4 or MT5, your capital, your margin).

A trade on the evaluation gets an opposite trade on the broker, at a lot sized to the challenge cost rather than to the virtual $50,000. The firm sees a trader. The broker sees a hedge. There is no API between them in the cloud. Prop Firm Armour runs locally on Windows. Read the terms of the firm you choose anyway. Rules differ.

The point is not that both sides make money. They cannot. The point is that the probable ending of the evaluation (max drawdown) is designed to book on the broker as the fee coming back (Scaling) or as surplus (Margin).

Not a copier

A copier repeats the same side, usually the same lot or a fixed multiplier. Traders already know that product. Calling ARMOUR a copier gifts the objection "those have existed for twenty years" to a different machine. The word on the product, in the app strings, and here is hedge: opposite direction, lot calibrated to the fee and the mode.

Two modes, one floor

Older copy on this URL listed three recovery flavours. The product has two cycle modes. The source of truth is Margin vs Scaling.

Scaling: designed so the fee returns on the breach, with less broker capital. Surplus is meant to sit at payout.
Margin: designed so surplus lands on the breach. About double the broker deposit. Payout often nets the broker loss.

There is no single deposit number that fits every $100k. Size, fee, max-drawdown percent, and mode all move it. /start prices your contract. Challenge math is the public calculator for the evaluation itself.

The software that runs this hedge is a prop firm hedge bot and a hedge copier: it does not trade the challenge. The procedure is the prop firm hedging strategy. The other account is a personal broker, not a second evaluation. Named tools that look adjacent (Prop Hedge, Prop Shield, reverse 1:1, multi-prop batches) are split in Prop Hedge vs Prop Shield vs a hedge copier.

What still breaks it

Slippage and spread on two venues (erosion). A broker that rejects the lot. A cycle configured for the wrong floor type. Capital that cannot hold a Margin book. News on one feed and not the other. None of that is a firm refund, and none of it is "risk-free." The hedge is a position. Positions lose when they are wrong, late, or under-funded.

Risk warning (UK and everywhere else). Prop Firm Armour is hedging software for informational and risk-management purposes. It is not a refund from the firm, not income advice, and not a guarantee. Trading leveraged products can lose some or all of the capital you put on the broker. Configuration, capital, and friction (erosion) decide the cash result. Read the terms of the firm you trade.

See the number on your challenge

Open /start and price the projected broker profit on a breach for your size, fee, and mode. That screen is the claim running as math, not a slogan.