These General Rules (hereinafter referred to as "Rules") govern the use of the Prop Star simulated trading platform. By accessing or using the Prop Star platform, you agree to be bound by these Rules, which constitute a legally binding agreement between you and Prop Star. These Rules are designed to ensure a fair, transparent, and educational environment for all users.
Prop Star is a simulated trading platform designed exclusively for educational and skill development purposes. It provides users with a realistic, yet simulated, trading environment to practice and refine their trading strategies without risking real capital. Prop Star is not an income-generating tool, an investment platform, or a means to achieve financial returns through real trading activities. All trading activities on the Prop Star platform are purely hypothetical and do not involve the exchange of actual financial instruments or real money. The primary objective of Prop Star is to offer a robust learning experience and to assess a trader's ability to manage risk and generate consistent hypothetical profits in a controlled environment.
3. Payout Mechanism for 'Funded' Accounts
Payouts for successful simulated trading performance on 'Funded' accounts are contingent upon and sourced exclusively from funds generated by users who fail their challenges on the Prop Star platform. This model ensures the sustainability of the platform and aligns the interests of successful traders with the overall health of the Prop Star community. It is imperative for all users to understand that Prop Star does not generate revenue from external investments or traditional trading activities to fund payouts. The payout pool is directly and solely replenished by the fees collected from unsuccessful challenge attempts.
4. Payout Queue and Insufficient Funds
In instances where the available funds from unsuccessful challenge attempts are insufficient to cover all eligible payouts, such payouts will automatically enter a payout queue. Payouts in the queue will be processed in the order they were incurred, once adequate funds have been collected from subsequent unsuccessful challenge attempts. Prop Star will make reasonable efforts to process payouts in a timely manner; however, the processing time is directly dependent on the replenishment of the payout pool. Users acknowledge and agree that delays in payouts may occur due to the nature of this funding mechanism.
5. Cost Deductions from Pooled Funds
Prior to any payouts being distributed from the pooled funds generated by unsuccessful challenge attempts, Prop Star will deduct all operational expenses and user acquisition costs. These deductions are essential for the maintenance, development, and growth of the Prop Star platform, including but not limited to, technology infrastructure, platform development, customer support, marketing, and administrative overhead. The remaining balance after these deductions constitutes the available pool for payouts. This ensures the long-term viability of the Prop Star platform and its ability to continue providing educational services.
To ensure the long-term sustainability and integrity of the Prop Star platform, a maximum of 3% of eligible traders per month will qualify for payouts. This limitation is a fundamental aspect of Prop Star's economic model and is designed to manage the outflow of funds in a controlled and predictable manner. The selection of traders for payouts will be based on predefined performance criteria and adherence to all Prop Star rules. This limitation may be adjusted by Prop Star at its sole discretion, with prior notice to users, to adapt to market conditions or platform sustainability requirements.
For all 'Funded' accounts, a maximum profit limit of 12% relative to the trader's chosen package size is enforced. Once a trader reaches this profit cap, their eligibility for further payouts from that specific 'Funded' account will be paused until the next evaluation period or a new challenge is undertaken. This profit cap is implemented to promote realistic trading expectations, encourage consistent performance over aggressive risk-taking, and contribute to the overall sustainability of the payout mechanism.
To maintain a fair and equitable simulated trading environment, the following practices are strictly prohibited on the Prop Star platform. Engagement in any of these activities will result in immediate disqualification from challenges, forfeiture of any accrued hypothetical profits, and potential suspension or termination of the user's account, at the sole discretion of Prop Star:
• Trade Copying: The act of replicating trades from other individuals, services, or signals, whether manual or automated.
• Hedging: Opening opposing positions on the same or correlated assets within the same or different Prop Star accounts to mitigate risk or exploit platform rules.
• Multi-Account Hedging: Using multiple Prop Star accounts, whether directly or indirectly controlled by the same individual or group, to open opposing positions or otherwise circumvent risk management rules.
• Use of Trading Bots or Signals: Employing automated trading systems (Expert Advisors, scripts, etc.) or relying on external trading signals to execute trades. All trading activity must be manual and based on the individual's own analysis and decision-making.
These prohibitions are in place to foster genuine skill development, prevent unfair advantages, and ensure that the simulated trading environment accurately reflects individual trading capabilities.
9. Compliance and Enforceability
These Rules are crafted with due consideration for industry standards and best practices in simulated trading environments. While Prop Star operates as an educational platform and does not fall under the direct regulatory purview of financial authorities governing real-money trading, these Rules aim to maintain a high level of transparency, fairness, and user protection. Prop Star reserves the right to monitor all trading activity for compliance with these Rules and to take appropriate action against any user found to be in violation. Users agree to cooperate fully with any investigations conducted by Prop Star regarding potential rule violations.
Prop Star reserves the right to amend, modify, or update these Rules at any time, with or without prior notice. Any changes will be effective immediately upon posting on the Prop Star website or platform. Your continued use of the Prop Star platform after any such modifications constitutes your acceptance of the revised Rules. It is your responsibility to regularly review these Rules to stay informed of any updates.
These Rules shall be governed by and construed in accordance with the laws of Ireland, without regard to its conflict of law principles. Any disputes arising under or in connection with these Rules shall be subject to the exclusive jurisdiction of the courts located in Ireland.
Disclaimer: This document provides a general framework for the terms and conditions. It is highly recommended that Prop Star consult with legal counsel specializing in financial technology and online platforms to review, customize, and finalize these terms to ensure full compliance with all applicable laws and regulations in their operating jurisdiction.
1. Clarity on 'Simulated' and 'Educational' Purpose
It is crucial to consistently and unequivocally emphasize that Prop Star is a simulated platform for educational purposes only. This distinction is the primary defense against being classified as a financial service requiring extensive regulation. The current wording is strong, but further reinforcement in user-facing communications and disclaimers is advised.
2. Payout Mechanism: Transparency and Risk Disclosure
The payout mechanism, being solely funded by unsuccessful challenge attempts, is a unique and potentially sensitive aspect. While transparently stated, it's vital to ensure users fully comprehend the inherent risk of payout delays or non-payment if the pool is insufficient. Consider adding a clear, concise risk disclosure specifically for this mechanism, perhaps in a FAQ or a dedicated section within the rules, using bold and prominent text.
3. Enforceability of Prohibited Practices
The prohibited practices section is well-defined. For enforceability, it's important to:
• Define 'Trade Copying' and 'Hedging' broadly: The current definitions are good, but ensure they cover various sophisticated methods users might employ to circumvent the rules.
• Monitoring and Detection: While not part of the legal text, the platform must have robust technical capabilities to detect and prove these prohibited practices. The ability to monitor and enforce is key to the credibility of these rules.
• Consequences: The consequences (disqualification, forfeiture, suspension/termination) are clearly stated. Consistency in applying these consequences is vital.
4. Jurisdiction and Governing Law
The placeholders Ireland are critical. The choice of jurisdiction will significantly impact the legal interpretation and enforceability of these rules. It is strongly recommended to choose a jurisdiction with a clear legal framework for online platforms and, if possible, one that is favorable to the educational/simulated nature of the business.
5. Amendments Clause
The amendments clause grants Prop Star the right to change the rules. While standard, it's good practice to consider:
• Notice Period: While 'with or without prior notice' is stated, for significant changes, providing a reasonable notice period (e.g., 7 or 14 days) can enhance fairness and user trust, even if not legally mandated for this type of platform.
• User Acceptance: Reiterate that continued use constitutes acceptance. This is standard and legally sound.
6. Disclaimer on Legal Counsel
The disclaimer at the end, advising consultation with legal counsel, is absolutely essential. This document serves as a strong foundation, but a legal professional specializing in the relevant jurisdictions and online platforms must review and tailor it to Prop Star's specific operational context and legal obligations.
7. Overall Language and Tone
The language is clear, concise, and professional. It balances the need for legal precision with readability for the average user. Avoid overly complex legal jargon where simpler terms suffice, without sacrificing accuracy.
By addressing these points, the terms and conditions will be significantly strengthened, providing a more robust legal framework for Prop Star.
All purchases made on the Prop Star platform are final and non-refundable from the moment the first limit or market order is opened within a purchased account or challenge. This policy is in place due to the immediate and irreversible allocation of resources and access to the simulated trading environment upon the initiation of trading activity. Users are strongly advised to carefully review their selections before completing any purchase and to understand the terms of this Refund Policy. Prop Star does not offer refunds, exchanges, or credits for any reason, including but not limited to, dissatisfaction with the platform, failure to meet performance targets, or account suspension/termination due due to violation of these Terms and Conditions. By proceeding with a purchase and initiating trading activity, you acknowledge and agree to this strict no-refund policy.
