Due Diligence·8 min
How to Read a Prop Firm's ToS for Payout-Denial Risk
Most payout denials come from rules buried in the fine print. Learn which clauses to look for before you pay an evaluation fee.
What is the single most important clause to check in a prop firm's ToS?
The 'Payout Conditions' or 'Profit Withdrawal' section. Look for subjective language like 'at our sole discretion' or 'abnormal trading activity' without clear definitions.
Which additional clauses hide payout-denial risks?
Three clauses to check: 1) News trading restrictions. 2) Consistency rules. 3) IP / multi-account policies.
How often do firms change these terms without notice?
ToS changes happen frequently. Our data includes a 'last verified' date so you can assess how stale the information might be.
What does a high payout denial report count actually mean?
A high count relative to estimated trader count may indicate systemic issues. Look for patterns in denial reasons.