Evaluation / challenge
The test you must pass to get prop firm funding: a profit target (e.g. 8-10%), a daily loss limit (4-5%), a total drawdown (8-10%), and sometimes a minimum number of trading days.
In the two-phase model, the target of the second phase is usually lower (5%). The fee varies with account size (about $100 for 10k, about $500 for 100k) and is refunded with the first payout after you pass.
The most common reason for failure is increasing risk under pressure to reach the target quickly. Trading at 0.5-1% risk per day is enough to pass most evaluations when there's no time limit.