Risk disclosure — trading evaluations on DecentralProp
Not yet reviewed by a lawyer. This document is published in draft so you can read it before you commit money, not because it is finished. No operating company has been formed and no governing law has been set, so parts of it name gaps rather than answers. It will be reissued once counsel has been through it. Questions: info@decentralprop.com
Read this before you pay for an evaluation. It describes what you're actually buying, what you can lose, and what isn't guaranteed. If anything here conflicts with the published fee schedule or the published architecture documentation on a factual mechanism, those documents are the source of truth and this one should be corrected to match.
1. What you're buying
An evaluation fee buys you an account on DecentralProp's execution engine — a simulated trading environment. You place orders through the UI and DecentralProp fills them against a live market price feed, but no order you place ever reaches a real exchange or broker. The prices are real; the execution is not. Whether you pass, and what you're paid if you do, both depend entirely on your performance inside that simulation.
If you pass, the firm funds an account in your name and pays you a share of the profit that account earns, delivered on-chain as described in Section 3. The fee you paid to attempt the evaluation is not refunded whether you pass or fail.
2. Evaluation risk
The rules are fixed platform-wide and enforced automatically by the server, not by a human reviewer: a maximum daily loss of 5%, a maximum total drawdown of 10% measured from your starting balance (not a trailing high-water mark), and a minimum of 4 trading days. The profit target is 7% for a one-step evaluation and for phase one of a two-step evaluation, and 5% for phase two of a two-step evaluation. A firm sets its profit split, and nothing else about the evaluation. Leverage is platform-set. Which account sizes a firm can sell is decided by the size of its treasury, not by the firm.
Breaching any rule fails the evaluation immediately. There is no discretionary override, no "just this once," and no partial credit. Most traders who buy an evaluation do not pass it. Passing is not the expected outcome; it's the outcome you're paying for a chance at.
3. Funded-payout risk
A funded payout is paid in $FIRMA — the specific firm's own token, not SOL, not a stablecoin, and not fungible with any other firm's $FIRMA. $FIRMA trades on a whose price is a mechanical function of that curve's reserves. It can go to zero. It has no guaranteed liquidity and no guaranteed listing beyond the specific mechanisms in the published fee schedule. See the token disclaimer for the full mechanics — this section is a summary, not a substitute for reading it.
A firm's ability to pay is backed by its own treasury first, then a shared reserve, then a platform-wide backstop pool, in that order. Those layers exist specifically so a thin firm can still pay a real winner — but they are bounded, not unlimited, and a large enough shortfall can still leave a payout delayed or partial.
4. Platform and smart-contract risk
DecentralProp settles evaluations, disputes, and payouts through five Solana programs that move real value. This is novel software running a business model that doesn't have an established track record elsewhere. As of this writing, those programs have been through multiple internal rounds of adversarial security review but have not yet completed an independent third-party audit — that engagement is planned to be funded from protocol revenue after launch, not before it. Internal review catches real bugs, but it is not a substitute for an outside firm's audit, and you should treat that gap as a real, current risk rather than a formality still being finalized.
Separately: the key that can upgrade these programs, and the key that co-signs certain insolvency-related payouts, are each currently held as a single key rather than split across multiple independent signers. Migrating both to a multi-signature setup is planned but not yet complete. Until it is, a single compromised key is a more direct path to loss of funds platform-wide than any one trader's own actions.
Smart contract risk of this kind is not unique to DecentralProp, but it is real: a bug, exploit, or unforeseen interaction between programs could result in a loss of funds that no amount of careful trading on your part would prevent.
5. Jurisdiction and eligibility
DecentralProp may not be available in every jurisdiction, and eligibility rules may change. See the Geo/AML Decision Memo for the platform's current access-restriction posture. It is your responsibility to confirm that participating is lawful where you live before you pay for an evaluation.
6. No advice, no guarantee
Nothing on this platform, in this document, or in any DecentralProp communication is financial, investment, legal, or tax advice. Past performance by other traders, other firms, or the platform as a whole is not a predictor of your results. DecentralProp does not guarantee that you will pass an evaluation, that a funded account will be profitable, or that any token will hold or gain value.
Open items for counsel: whether this needs jurisdiction-specific versions, whether it should be a standalone acknowledgment a trader affirmatively signs (not just a linked page) before their first purchase, and how Section 4's audit-status language should be worded once the audit is actually engaged.