Prediction-market prop firm glossary
Every rule and term that decides whether you get funded and paid, defined in plain English. New to the category? Start with what a prediction-market prop firm is, or jump to any term below.
Consistency rule
A cap on how much of your total profit can come from a single day or market, so you can't pass on one lucky trade.
Drawdown
The maximum your account may fall before it fails, measured either from your starting balance (static) or from your highest equity (trailing).
Evaluation (challenge)
The test phase you must pass — hitting a profit target without breaching the drawdown — before you trade a firm's funded capital.
Funded account
The account you trade after passing an evaluation (or buying instant funding), where profits are split with the firm and paid out.
Instant funding
A funded account with no evaluation: you trade the firm's capital from minute one and a payout triggers automatically at a set gate.
Kalshi
A US-regulated (CFTC) prediction-market exchange; a few prop firms mirror or aggregate its markets.
Max position / risk
The largest position or risk allowed per trade, capping how much any single bet can move your account.
Minimum trading days
The fewest distinct days you must trade before you can pass an evaluation; 'None' lets you pass as soon as you hit the target.
Payout gate
The profit level that unlocks a withdrawal — on an instant-funded account, reaching it triggers an automatic, fixed payout.
Polymarket
The largest crypto prediction-market exchange; most prediction-market prop firms fund traders on its markets.
Prediction-market prop firm
A proprietary-trading firm that funds traders to trade prediction markets such as Polymarket and Kalshi, taking a share of the profit.
Profit split
Your share of the profit once funded — 80% means you keep $80 of every $100 of profit.
Profit target
The realised profit, as a percent of the starting balance, you must reach to pass an evaluation — or, for instant funding, the gate that triggers a payout.
Simulated account (B-book)
An evaluation or funded account that mirrors live market prices internally rather than placing your orders on the real venue.
Static drawdown
A loss limit measured from your starting balance that never moves, so your full buffer stays available no matter how high your equity climbs.
Time limit
A deadline to reach the profit target; 'None' lets a slow-resolving thesis play out without a countdown.
Trailing drawdown
A loss limit that follows your highest equity (high-water mark), tightening as you profit so it always sits a fixed distance below your peak.
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