Problems Proportion solves
A B-book prop firm is the counterparty to its own traders, so every payout is its loss. Nobody wants to pay, and the rulebook grows until nobody has to: new rules, endless KYC checks. The effort spent fighting abuse lands on honest traders too: rules written for cheats, and refused payouts they earned. Proportion takes the firm out of the other side of the trade. A funded account trades on the Hyperliquid order book, so the trader’s profit is paid by the market. The backer who opens the account is paid from that profit, and a trader’s loss comes out of the buffer the backer posts to open it. The account’s terms are fixed at activation.
Challenges are separate: simulated evaluations traded and graded offchain. The payment, its escrow and the promotion to a funded account are onchain. A backer can use one to choose traders, and the backer decides whether a passed challenge becomes a funded account. See Challenges.
What each side gets
- Trader
- Backer
- LP
- Capital on the Hyperliquid order book and 30–90 % of the profit. Your backer sets the share, and it is fixed at activation.
- On a backed account, the backer posts the buffer and pays the premium. A subscription of 1.5 % of account size per 30 days is paid from the account’s profit. If it cannot be paid at renewal, the account closes and you keep your share of the profit.
- You can fund yourself instead: you post the buffer and a premium for a prepaid term, and on an ordinary close you keep both the trader’s and the backer’s share of the profit.
- You can withdraw profit while the account is open, once it has no open positions and has three profitable days or 1.5 % profit; each withdrawal takes all current profit. An account with a profit target has no withdrawals: reaching the target closes the account and pays your share.
- A floor breach or your request to close the account forfeits your share of the profit still in the account: all of that profit is split equally between the backer and the protocol. On a self-funded account you are the backer, so you keep that half. Profit already withdrawn is yours.
Security covers the audit and how the contracts are administered.