> For the complete documentation index, see [llms.txt](https://docs.propfunding.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.propfunding.com/key-differences-from-traditional-prop-firms.md).

# Key Differences from Traditional Prop Firms

| Feature                 | Traditional Prop Firms | **Propfunding.com**                                         |
| ----------------------- | ---------------------- | ----------------------------------------------------------- |
| **Capital Source**      | Internal firm capital  | Live LP accounts powered by trader data                     |
| **Fee Usage**           | Retained by firm       | Paid after passing                                          |
| **Risk Management**     | Firm absorbs risk      | Risk offset through LP algo models trained on trader's data |
| **Transparency**        | Centralized, opaque    | Data monetization performance is openly shared              |
| **Incentive Alignment** | Firm vs Trader         | **Pass-first model,** only successful traders pay           |

This approach allows Propfunding.com to scale sustainably, reward performance, and **turn failed trades into system-wide value,** without ever charging traders up front.