Clear rules for funded crypto traders.
Follow the drawdown, risk, and payout rules below to keep your account eligible and your capital allocation active.
1.1 Overview
PropDAO is a decentralized simulated proprietary trading platform built to identify and reward consistently profitable traders. Through our evaluation programs, traders demonstrate their ability to generate returns while managing risk in a realistic simulated trading environment before becoming eligible for performance-based payouts.
All trading activity takes place on the PropDAO Terminal, where supported assets, execution data, account metrics, and risk limits are tracked in one platform.
Upon successfully completing an evaluation, traders may qualify for a Simulated Funded Account and receive a share of their simulated profits in accordance with the PropDAO Payout Policy.
This Rulebook governs all PropDAO Evaluation Accounts, Simulated Funded Accounts, and any future challenge programs. By purchasing an evaluation, connecting a wallet, or using the Platform, you agree to comply with this Rulebook, the Terms of Service, the Privacy Policy, and all other applicable PropDAO policies.
1.2 Account Sizes
PropDAO offers multiple evaluation account sizes. Each account size has its own starting balance, challenge price, profit target, drawdown limits, and maximum leverage rules.
Traders should select an account size that matches their strategy, risk tolerance, and expected position sizing. Larger accounts provide more simulated capital but require the same disciplined risk management as smaller accounts.
Every account shares the same core rules — a 10% profit target, a 5% maximum drawdown fixed at the starting balance, and an 80% profit split — and there is no minimum number of trading days. The three variants differ only in the maximum daily loss (1%, 2% or 3% of the day's opening balance), priced accordingly.
1.3 How to Start
Select your account size, complete the checkout process, and receive access to your simulated evaluation account.
Trade within the evaluation rules and work toward the required profit target while remaining within the maximum drawdown limits. There are no minimum trading days and no time limits.
If you reach the profit target without violating any account rules, you automatically qualify for a Simulated Funded Account. If your account reaches the maximum drawdown or otherwise breaches the evaluation rules, the evaluation ends and the evaluation fee is non-refundable. You may purchase a new evaluation to try again.
Once funded, there is no profit target. Continue trading within the funded account rules and become eligible to request payouts based on your simulated trading performance in accordance with the PropDAO Payout Policy.
1.4 Definitions
The total account value based on closed realized P&L only. Does not include open positions.
The real-time account value including both closed P&L and the unrealized P&L of all open positions. Equity = Balance + Unrealized P&L.
A fixed floor set permanently 5% below your starting balance. It never trails your profits.
The most you can lose in one day: 1%, 2% or 3% of your equity at 00:00 UTC, set fresh each day and counted from the day's highest closed balance.
The automatic closure of all open positions and permanent termination of the account. Cannot be recovered, reset, or appealed.
The account growth required to pass the evaluation, expressed as a percentage of the starting balance. Applies to the evaluation stage only.
A day where the account generates at least 0.5% profit based on the initial account balance.
2.1 Static Drawdown
PropDAO uses a static drawdown. The floor is set once, at 5% below your starting balance, and it stays there for the life of the account. On a $10,000 account the floor is $9,500 — on day one, after your first winning week, and after you have doubled the account.
Because the floor is measured against equity (balance plus open P&L), it is checked in real time on every tick — there is no separate end-of-day check and no intraday-only rule. Payouts don't move it either: withdrawing profit lowers your balance toward the start, but the floor stays at 5% below the starting balance.
The number you saw when you bought the account is the number you are measured against, always. Your room only grows as you make profit.
Common in some prop-firm models, but it can punish temporary profit spikes and make risk harder to track.
2.2 Daily Loss Limit
On top of the static 5% floor, every account has a daily loss limit of 1%, 2% or 3% — you pick it when you buy the account (Quant, Pro or Starter). It caps how much you can lose in a single trading day, so one bad session can never take out most of your total room.
The trading day runs midnight to midnight UTC. At 00:00 UTC your daily loss limit is set for the day as a dollar amount: your percentage of your equity at that moment. That amount stays the same all day. Your loss is counted from the highest closed balance you reach that day, so profit you bank by closing a trade raises the starting point, but open, unrealized profit does not. If your equity (balance plus open P&L) falls by the full daily amount from that high, all positions are closed and the account is breached — the same outcome as hitting the 5% static drawdown.
Floating profit on open positions never moves the limit; only closed trades do. At the next 00:00 UTC a new limit is set from your equity at that time, up if you made money and down if you lost, and the day's high starts over.
Equity at 00:00 UTC Tuesday is $10,400, so Tuesday's daily loss limit is $208. You close a trade for +$300, so your closed balance reaches $10,700 and you can now go down to $10,492 before breaching. An open trade showing +$500 would not change that. On Wednesday a new limit is set from Wednesday's 00:00 equity.
2.3 Profit Target
The profit target is based on balance, meaning closed P&L only. You must close trades to realize the profit.
Once your balance reaches or exceeds the target, the step or evaluation is automatically passed.
There is no time limit to reach the profit target on either step.
There is no minimum number of trading days. You can pass in a single trade.
3.1 Funded Stage
After passing the evaluation, the trader becomes eligible for a Simulated Funded Account. This is the stage where simulated profits may become eligible for payout review.
There is no profit target in the funded stage. The goal is to continue trading consistently while staying within the account's loss limit, approved-market rules, leverage limits, and conduct requirements.
The account balance and equity continue to be monitored in real time. If the account breaches its loss limit or violates a trading rule, funded status can be removed and open positions may be closed.
Payouts are based on simulated funded-stage profits and are paid automatically by the platform — there is no manual review or approval step. PropDAO may hedge funded positions on the real market to cover payouts; this never affects your account, its rules or its P&L.
3.2 Payouts
Traders keep 80% of all profits generated on the funded account, while PropDAO retains 20%.
Payouts are on-demand, with no minimum waiting period, no limit on request count, and a $20 minimum payout amount. They are processed automatically in minutes in on-chain USDC.
Withdraw up to your full available profit (current balance minus starting balance). The static floor is unchanged; the next 00:00 UTC daily limit is set from the post-withdrawal equity.
All positions must be closed before requesting a payout.
Payouts are not available on evaluation or breached accounts.
4.1 Assets & Leverage
Traders may only trade assets listed on the PropDAO Assets page. 150+ perpetual markets with liquidity sourced from Hyperliquid, 24/7.
Each asset has its own maximum leverage limit, shown per market on the Assets page: 2x on crypto with a market cap above $1B, 1.5x on RWA markets, 1x on smaller-cap coins.
View Assets4.2 What Is Not Restricted
PropDAO keeps the rulebook focused on drawdown, leverage, approved assets, and payout requirements. These common prop-firm restrictions do not apply.
No cap on single-day profit as a percentage of total profit.
Pass in a single trade if you can. No minimum number of trading days.
Take as long as you need to pass the evaluation.
There is no maximum on how much you can earn.
Trade during any market event.
Hold positions over weekends. Crypto markets are 24/7.
No maximum position size rule beyond leverage limits.
Stop-losses are not required, though they are recommended.
The drawdown rules are the only risk guardrails.
Scalping, swing trading, grid trading, and other strategy types are permitted.
Automated trading is permitted.
Copy trading is permitted, including between your own PropDAO accounts.
4.3 Prohibited Conduct
Bug exploiting is prohibited. Traders may not use platform errors, pricing mistakes, execution issues, display bugs, or accounting bugs to create artificial profit or avoid normal risk controls.
Latency arbitrage is also prohibited. Strategies that exploit delayed quotes, delayed execution, stale prices, or feed timing differences are not allowed and may result in account breach, payout denial, or removal from the platform.
Cross-account hedging is prohibited. Traders may not hold opposing positions on the same or correlated markets across different PropDAO accounts — whether the accounts belong to the same person or to a coordinated group — so that one account profits from another’s loss. Hedging within a single account is allowed. Violations may result in breach of every account involved, payout denial, or removal from the platform.
Minimum hold: 1 second before a manual close.
Between orders: user-initiated executions must be at least 0.5 seconds apart.
4.4 No KYC
PropDAO does not require KYC to purchase an evaluation, trade an evaluation account, qualify for a simulated funded account, or request eligible payouts.
Accounts are connected through the platform flow without identity document uploads or manual identity verification. Traders are still responsible for complying with their local laws and any wallet, exchange, tax, or on-chain requirements that apply to them.
4.5 Fees
Each evaluation has a one-time evaluation fee paid at purchase. The evaluation fee gives access to the selected simulated account size and is separate from trading fees.
Trading fees are charged per fill on the notional value of the trade, on both open and close, and do not vary with leverage.
The same maker and taker rates apply on every market and at every leverage.
4.6 Transparency
PropDAO publishes its operating numbers rather than testimonials. The Transparency page shows fees collected, payouts made, registered users, active and funded accounts, trades closed and notional traded, read live from the production database.
The feed is a public, aggregates-only database function — it cannot return anything about an individual account — and anyone can call it directly (see the developer docs). Payouts settle on-chain in USDC, so each one can be checked on the explorer independently of anything PropDAO publishes.