How and when is the refundable challenge deposit returned?

On One-Step and Two-Step challenges, once you successfully complete the Challenge and become eligible for your first profit split, your Refundable Challenge Deposit will be returned. The Deposit is processed together with your first profit split and sent as a separate crypto transaction from your payout.

This applies to One-Step and Two-Step challenges. Zero-Step has a challenge fee instead, which is not refundable once you activate the challenge. That is the trade-off for the fastest route: one trading day and no verification phase. Cancelling before activation is still refunded.