Trading Rules

Clear rules for funded crypto traders.

Follow the drawdown, risk, and payout rules below to keep your account eligible and your capital allocation active.

0Daily loss limits
NoKYC required
MinPayout processing
NoTime limit

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.

Minimum trading day requirements also vary by account type: Standard accounts require 5 trading days at 0.5% each, while Pro accounts require 3 trading days at 0.5% each.

1.3 How to Start

Step 1: Purchase an Evaluation

Select your account size, complete the checkout process, and receive access to your simulated evaluation account.

Step 2: Trade

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.

Step 3: Pass or Fail

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.

Step 4: Get Simulated Funded

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

Balance

The total account value based on closed realized P&L only. Does not include open positions.

Equity

The real-time account value including both closed P&L and the unrealized P&L of all open positions. Equity = Balance + Unrealized P&L.

Max Loss Limit (MLL)

A fixed absolute floor set permanently below your initial account balance. It is 4% on all accounts except the $200K accounts, where it is 3%.

Breach

The automatic closure of all open positions and permanent termination of the account. Cannot be recovered, reset, or appealed.

Profit Target

The account growth required to pass the evaluation, expressed as a percentage of the starting balance. Applies to the evaluation stage only.

Qualifying Trading Day

A day where the account generates at least 0.5% profit based on the initial account balance.

2.1 Total Loss Limit

A loss limit is the maximum amount an account can lose before it is considered breached. PropDAO uses a total loss limit to define the minimum permitted equity on an account.

If account equity reaches or falls below the total loss limit, the account is breached. A breach results in the automatic closure of all open positions and permanent termination of the account.

PropDAO does not use a daily loss limit. Traders are not restricted by a separate intraday loss floor, but the total loss limit must be respected at all times.

No Daily Loss Limit

PropDAO does not apply a separate daily loss limit. Your account is measured against the total loss limit only.

Total loss limit graphic showing starting balance, fixed loss floor, no daily loss limit, equity path, and breach result.
Total loss limit: equity must stay above the fixed floor. No daily limit: there is no separate intraday reset.

2.2 EOD vs Trailing Drawdown

PropDAO uses EOD drawdown, not trailing drawdown. EOD means the loss floor is checked against the account at the end of the trading day and does not chase every intraday high-water mark.

Trailing drawdown is stricter because the loss floor can move upward as unrealized or realized profits increase. A trader can be profitable and still create a higher breach level after an intraday peak. PropDAO keeps the rule simpler: respect the total loss limit, with no daily loss limit and no intraday trailing floor.

EOD Drawdown PropDAO
Equity can move during the day without raising the loss floor. The account breaches only if equity reaches the total loss limit.

Best for traders who want a clear risk floor and room for normal intraday volatility.

Trailing Drawdown Not used
New account highs can push the drawdown floor higher. A later pullback may breach even above the original limit.

Common in some prop-firm models, but it can punish temporary profit spikes and make risk harder to track.

PropDAO ruleEOD drawdown with a total loss limit only.
No trailing floorYour loss limit does not climb after every intraday peak.
No daily loss limitThere is no separate daily reset or intraday daily breach line.

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.

Payout requests are based on simulated funded-stage profits. Every payout request is reviewed for rule compliance before approval and processing.

3.2 Payouts

Normal accounts keep 80% of all profits generated on the funded account, while PropDAO retains 20%. Pro accounts keep 90% of all profits, while PropDAO retains 10%.

Payout requests are on-demand, with no minimum waiting period, no limit on request count, and a $20 minimum payout amount. Approved payouts are processed in minutes in on-chain USDC.

100%
Available Profit Current balance above the starting funded balance, based on closed realized P&L.
80/90%
Trader Payout Normal accounts pay 80% to the trader. Pro accounts pay 90% to the trader.
Reset
Balance Resets Each payout sweeps all available profit and returns the balance to the initial funded amount.
Normal payout = (Current Balance - Starting Balance) x 0.80
Pro payout = (Current Balance - Starting Balance) x 0.90
Drawdown limits reset accordingly after the full profit sweep. No partial withdrawals.
On-demand, at any time, with no minimum waiting period.
Minimum payout amount: $20.
No limit on the number of payout requests.
Processed in minutes.
All payouts are in USDC on-chain.
Full profit sweep only.
Payout Restrictions

All positions must be closed before requesting a payout.

Full profit sweep only. Partial withdrawals are not available.

Payouts are not available on evaluation or breached accounts.

4.1 Assets & Leverage

Traders may only trade assets listed on the PropDAO Assets page. The supported market list includes crypto, stable, equity, index, and metal instruments.

Each asset has its own maximum leverage limit. The allowed leverage is shown per market and must be followed at all times.

View Assets

4.2 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.

NoneConsistency Rule

No cap on single-day profit as a percentage of total profit.

NoneDaily Loss Limit

There is no daily loss limit. Only the total account loss limit applies.

NoneTime Limit

Take as long as you need to pass the evaluation.

NoneProfit Cap

There is no maximum on how much you can earn.

NoneNews Trading Restriction

Trade during any market event.

NoneWeekend Holding Restriction

Hold positions over weekends. Crypto markets are 24/7.

NoneRisk-Per-Trade Rule

No maximum position size rule beyond leverage limits.

NoneMandatory Stop-Loss

Stop-losses are not required, though they are recommended.

NoneAnti-Gambling Rule

The drawdown rules are the only risk guardrails.

NoneStrategy Restrictions

Scalping, swing trading, grid trading, and other strategy types are permitted.

NoneEA / Bot Restrictions

Automated trading is permitted.

NoneCopy Trading Restriction

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.

Execution Timing Limits

Positions must be held for at least 1 second before a manual close. User-initiated executions must be spaced 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 apply only when opening a position. There is no closing fee. Opening fees scale by leverage from 0.12% at 1x up to 0.16% at 5x.

Leverage
Opening Fee
1x
0.12%
2x
0.13%
3x
0.14%
4x
0.15%
5x
0.16%
No Closing Fee

Trading fees are charged on position open only. Closing a position does not add a separate trading fee.