> 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/overview/how-the-model-works.md).

# How the Model Works

Instead of relying on challenge fees or centralized firm capital, our model is powered by **data**, **performance**, and a **scalable evaluation system**.

#### Evaluation & Funding Flow:

1. **Free Entry:** Traders join our two-step challenge at no cost, only one account per cohort is allowed per user.
2. **Live Evaluation:** All traders start at the same time under standardized rules and account sizes.
3. **Data Monetization:** Every trade feeds our internal algorithmic models powering live LP accounts.
4. **Funding Allocation:** Only the top 10% of traders per cohort are funded, on a first-pass, first-funded basis.
5. **Free Rollover:** Profitable traders not funded this round are auto-enrolled into the next month’s cohort.
6. **Post-Pass Activation Fee:** Only those who pass and pay a one-time activation fee to go live.

#### Key Benefits:

* **No Upfront Risk:** Traders can prove themselves without paying a cent upfront.
* **Every Trade Counts:** Win or lose, each trader adds value to our data systems.
* **Sustainable Model:** Our algos use live trader behavior to drive performance on LP accounts.
* **Scalable Funding:** The more traders that participate, the more efficient and profitable the system becomes.