> For the complete documentation index, see [llms.txt](https://eosi-finance-1.gitbook.io/eosi-finance-documentations/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://eosi-finance-1.gitbook.io/eosi-finance-documentations/eosi-finance/5.-architecture-of-the-eosi-finance-ecosystem/5.1-decentralised-funding-and-governance.md).

# 5.1 Decentralised Funding and Governance

<mark style="color:$primary;">**EOSI Finance**</mark>’s funding mechanism diverges from traditional prop firms. Instead of relying on a central entity to supply capital, <mark style="color:$primary;">**EOSI Finance**</mark> uses its native token <mark style="color:$success;">**EOSIF**</mark> as the gateway to funded accounts.&#x20;

At the heart of <mark style="color:$primary;">**EOSI Finance**</mark> are **two key contracts**: a **public funding pool** and one or more **private evaluation pools**. Members deposit approved tokens (e.g., MATIC, USDT, EOSIF) into the public pool. Once the community approves a trader, a smart contract allocates a portion of the pool to that trader’s evaluation account. If the trader meets the predefined profit and risk criteria, governance can vote to move them to a live trading account with a larger allocation. The smart contracts handle fund flows automatically and enforce drawdown limits, profit‑targets and risk parameters. <mark style="color:$primary;">**EOSI Finance**</mark> never takes custody of the pool; all movements of capital occur via transparent, auditable transactions.

When traders purchase evaluation packages or funded accounts, they pay in <mark style="color:$success;">**EOSIF**</mark>. These tokens are either burned or deposited into a **trader funding pool** managed by smart contracts. The pool acts as a treasury, providing capital for funded accounts and backing returns for copy traders and the <mark style="color:yellow;">**StandR Bot**</mark>.

**On‑Chain Governance:** <mark style="color:$success;">**EOSIF**</mark> holders participate in governing the platform by voting on proposals. Key parameters subject to vote include:

* Evaluation fee levels and profit targets.
* Drawdown limits and position size restrictions.
* Profit‑sharing ratios between traders, copy traders and <mark style="color:$primary;">EOSI Finance</mark>.
* Onboarding or removal of pro traders.
* Allocation of treasury funds for development, buybacks, liquidity provision or new services.
* White‑listing of new assets or integration with external protocols.

This decentralised governance model ensures transparency and community ownership. Token holders can delegate voting power to representatives or join councils to discuss proposals.

To avoid regulatory confusion, <mark style="color:$primary;">**EOSI Finance**</mark> does not market these pools as investment vehicles. Contributors should view their participation as providing liquidity to a community‑driven experiment in decentralised trading rather than as an investment in a managed fund. Participants must assess their own risk appetite and understand that they could lose some or all of their contribution.


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