Prop firm terms of service typically run 8,000–15,000 words, and most traders scroll to the bottom and click “I agree.” But whether your account survives — and whether your payouts go through — comes down to five clauses, not the whole document. This guide is how to read them in 15 minutes.
Clause 1: The modification clause
Keywords: modify, amend, change these terms
What to look for: Whether the firm can change the terms “at any time,” and whether such changes apply to “active evaluations and accounts.”
FundingTicks case: In December 2025 the firm used its modification clause to apply a 1-minute minimum hold for scalpers, higher daily profit requirements, and a lower profit split to existing accounts. Trustpilot dropped from ~4.1 to ~3.2. On January 18, 2026 the firm announced a tiered-refund wind-down. Details in our retroactive rule changes guide.
Good wording:
- “Will not apply to active evaluations or accounts”
- “Material rule changes are notified by email in advance”
- “Existing users get ≥30 days notice before changes take effect”
Dangerous wording:
- “We may modify these terms at any time, with no notice”
- “Continued use constitutes acceptance”
- “Changes take effect upon posting”
Clause 2: Disqualification grounds
Keywords: disqualify, terminate, void, forfeit
What to look for: Whether grounds for voiding earned profits are specifically and narrowly defined, or written broadly and abstractly.
Dangerous wording:
- “If the firm determines the conduct is contrary to the program’s intent”
- “Any conduct the firm considers abusive”
- “At any time, at the firm’s discretion”
Good wording:
- “If the prohibited-strategies list (below) applies”
- “If a clear violation is confirmed by external evidence”
- “Following prior written notice”
Terms that lean heavily on “firm’s discretion” leave room for post-hoc disqualification.
Clause 3: Intellectual property
Keywords: intellectual property, proprietary, algorithm, strategy
What to look for: Who owns your trading strategies and algorithms. Some firms claim “all strategies used on our platform become our property,” which can make using your own EA technically a violation.
Dangerous wording:
- “All trading strategies used on our platform become our property”
- “We may use any algorithm or method observed for our own purposes”
Good wording:
- “Your strategies and algorithms remain yours”
- “The firm is bound by confidentiality”
Especially important for EA/algorithmic traders. See EA / automated trading at prop firms.
Clause 4: Dispute resolution
Keywords: arbitration, jurisdiction, governing law, dispute
What to look for: Where and how disputes are resolved. Forced arbitration in remote or obscure jurisdictions effectively makes remedies impossible.
Typical bad setup:
- Arbitration in Curaçao, Belize, BVI, Saint Vincent, etc.
- Sole arbitration by an arbitrator the firm selects
- Arbitration fees on the trader, several times the evaluation fee
Typical good setup:
- Arbitration or court in the firm’s headquarters jurisdiction
- ICC, AAA, or similar international arbitration body
- Shared or firm-borne arbitration costs
If the dispute resolution clause is buried in fine print at the bottom of the page, that clause is the one to read first. If, after reading, you conclude that effective remedies are unavailable, “do not buy this evaluation” is a defensible call.
Clause 5: Wind-down policy
Keywords: discontinue, cease operations, wind down, terminate the program
What to look for: How evaluation fees, earned profits, and balances are handled if the firm stops operating.
FundingTicks wind-down refund framework (2026-01-18):
- Evaluation accounts: full refund
- Master accounts not meeting profit conditions: full refund
- Master accounts meeting profit conditions: 80% profit share
- Live accounts with profits: refund + 90% realised + 20% initial balance
- CEO statement: $220M+ paid historically
This framework is relatively orderly by industry standards. Many firms shut down without paying traders anything. Our shutdown tracker records refund presence/absence at wind-down too.
Good signs in the terms:
- “If we cease operations, unpaid profits and active evaluation fees will be refunded”
- “≥30 days advance notice”
- “Specific refund schedule”
If the clause is silent: The firm likely has no obligation to pay anything at wind-down.
The 15-minute method
- Open the firm’s terms page. Browser search (Cmd+F or Ctrl+F) the keywords above in order.
- Read the hits. 10–30 seconds each.
- For each of the five clauses, rate “good” or “dangerous.”
- Three or more “dangerous” — don’t pay the evaluation fee.
You do not need to read the terms for all 30+ firms. Use the 30-minute shortlist method to narrow to 3–4 candidates first, then apply the 15-minute read to each.
Total time: 30 minutes shortlist + ~60 minutes (3–4 firms × 15–20 minutes) = under 2 hours for a defensible final firm choice. For a decision that may involve thousands of dollars over several years, that is a proportionate investment.
This page is informational and is not legal advice. For material legal questions, consult a qualified attorney.