Legal

DePropFirm operates as a decentralized, non-custodial trading simulation protocol. It does not provide investment, brokerage, or asset management services of any kind. All activities occur entirely on-chain through autonomous smart contracts, without any custodial control or human discretion.

The protocol enables users to participate in simulated trading challenges using virtual balances. Entry fees are paid directly on-chain, but DePropFirm never holds or controls user funds — all assets go straight into the protocol's Challenge Vault smart contract, which transparently and automatically redistributes rewards according to immutable logic.

Because no funds are ever managed, stored, or invested by a central entity, and all interactions are made through self-custody wallets, DePropFirm does not fall under the definition of a financial institution, money transmitter, or investment service under current legal frameworks.

DePropFirm is fully non-custodial:

• Users maintain full control of their wallets and private keys at all times.
• All transactions (challenge entries, rewards, and challenge logic) are handled by autonomous smart contracts.
• The protocol cannot access, transfer, or retain any user funds manually.
• There are no intermediaries, no custodial wallets, and no off-chain fund storage.

Every fund movement is executed automatically on-chain, transparent and verifiable by anyone. No administrator or backend system can modify or intercept the process.

When a trader successfully completes both phases and qualifies as a funded trader, the process is entirely automated through Chainlink Automation and other decentralized services:

• The trader receives an on-chain reward equivalent to the entry fee amount — symbolizing full validation of their success.
• The trader's funded simulation account is activated.
• Any profit share generated in this funded stage is distributed automatically by the smart contracts from the on-chain vault.

No manual withdrawal or approval is needed. All distributions are executed programmatically, ensuring transparency, fairness, and decentralization. Since every payout is executed by smart contracts, DePropFirm maintains zero custody and no discretionary control over user assets.

DePropFirm is not a broker, exchange, or investment intermediary. It does not:

• Execute or route real trades on financial markets.
• Offer leverage or investment in real instruments.
• Manage, invest, or safeguard client assets.
• Provide financial advice, trading signals, or profit guarantees.

All trading is purely simulated, with real-time price feeds from Pyth Network used solely to replicate market conditions within the simulation environment. No user capital ever interacts with external exchanges.

DePropFirm is therefore a decentralized simulation protocol, not a financial or investment service.

All DePropFirm contracts are open-source, audited, and publicly verifiable. Every transaction — including challenge entries, trader performance, and reward distributions — is visible on-chain, ensuring full traceability and public accountability.

No back-end database or human control exists: every process is governed by transparent smart contract code.

DePropFirm remains compliant by design because:

• It is decentralized, non-custodial, and autonomous.
• It provides no financial intermediation or asset custody.
• All operations (payments, rewards, simulations) are handled by smart contracts only.
• All profits and rewards are automatically distributed on-chain via Chainlink Automation.
• No user data or KYC is collected — ensuring privacy and permissionless access.

Therefore, DePropFirm does not fall under financial regulations, as it neither holds funds nor provides financial services. It functions solely as a transparent, decentralized simulation environment for traders to showcase their skills.