😲3. Challenges in Traditional Prop Firms
Traditional prop firms are centralised businesses that provide traders with access to capital. While they offer a path to leverage, the following challenges represent pain points for traders and investors that EOSI Finance seeks to address:
Opaque processes: legacy prop firms operate behind closed doors. Evaluation metrics, drawdown limits, profit targets and payout rules are often hidden or subject to change without notice. Traders frequently have their accounts terminated despite meeting profit targets; profits are withheld or returned without clear justification. This undermines trust.
Centralised control and decisions: ownership is concentrated among a small set of founders or investors. They decide which traders to onboard, which accounts to close and how profits are distributed. The community has no voice.
High leverage and reckless risk: some firms encourage traders to take large positions with high leverage to boost returns, increasing the probability of liquidation and losses. Others restrict risk to the point that traders cannot execute effective strategies.
One‑size‑fits‑all evaluation: evaluation accounts often force traders into specific profit targets (e.g., 8 % in 30 days) regardless of style or market conditions. This pressure leads to over‑trading and burnout.
Hidden fees and delayed payouts: evaluation fees, data fees, software subscriptions and withdrawal fees can add up. Some firms delay payouts for weeks, harming traders’ cash flow.
Limited education and support: many prop firms provide little training, leaving traders to learn through expensive trial and error.
Restrictive asset offerings: most prop firms support only traditional asset classes. Traders interested in crypto, RWAs or innovative derivatives have limited options.
EOSI Finance seeks to address these problems through community funding, AI‑driven assessments, dynamic risk management, multi‑asset access, community governance and on‑chain transparency/enforcement of rules.
Last updated