A reset fee is the price of restarting a challenge after it has been failed or breached. Rather than buying a brand new challenge, you pay the reset fee and the account returns to its starting balance with the same targets and loss limits. The slate is wiped clean, including any profit you had made.
Resets are usually cheaper than a new purchase, which is why firms offer them. The discount varies, and some firms limit how often you may reset, or offer a free reset only under a promotion. A reset does not change the rules: the same daily loss, maximum loss, and minimum days apply to the fresh attempt.
Knowing the reset price before you buy tells you the true cost of two or three attempts, not just one. A cheap challenge with an expensive reset can cost more across three tries than a dearer challenge with cheap resets.
The common trap is resetting on impulse right after a breach, without reviewing what went wrong. We recommend treating the reset as a new purchase decision: check the fee, re-read the rules that ended the last attempt, and only pay it when you have a plan to trade differently. Prop trading can cost you every fee you pay.