# 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.


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