PROOF ON
Litepaper · v0.2

PROOF in twelve pictures.

What the code enforces, what it doesn't, and what you have to trust. Short on purpose.

01thesis

Replace the prop firm with code.

Prop firms fund skilled traders — but hold everyone's money, change rules at will, and pay at their discretion. PROOF keeps the idea and removes the firm.

  1. 01

    Prove skill

    On your own wallet, in the $100K simulation, or with your own capital.

  2. 02

    Get funded

    Investors deposit into your vault. You trade, never withdraw.

  3. 03

    Split profits

    Investors, trader, protocol — by a public ratio.

02architecture

Money never passes through the trader.

Every order walks this path. The trader can push orders in; nothing lets them pull money out.

  1. 01Investordeposits stablecoins
  2. 02Trader Vaultholds the money
  3. 03Execution Controllertrader's only door
  4. 04Risk Enginechecks every order
  5. 05Approved Adapterwhitelisted routes
  6. 06MarketDEX / RWA
Profit and loss return to the Vault. The trader never touches them.
Capital flows from investor to vault to controller to risk engine to adapter to market; PnL returns to the vault.
03stage 1

Stage 1 — Proof of skill.

Three ways in, three separate records: import an existing wallet (context), run the $100,000 simulation for 14 days under a published Risk Mandate (platform verified), or trade your own capital on-platform (highest verification). Virtual capital is never real custody and never withdrawable.

Standard track$100K virtual · 14d
Max drawdown
−15%
Daily limit
−6%
Max leverage
5×
Profit target
none
Conservative track$100K virtual · 14d
Max drawdown
−8%
Daily limit
−3%
Max leverage
2×
Profit target
none

Illustrative parameters. Final values are set by governance before mainnet and can change afterwards through governance.

04traderscore

Two scores that cannot be bought.

Trader Score weighs skill — including where the history came from and how much capital was actually at risk. Risk Score weighs discipline. Deterministic, public inputs; PROOF holdings are not among them.

89Trader Score
78Risk Score
Trader Score inputs
  1. 01
    Risk-adjusted return
  2. 02
    Max drawdown
  3. 03
    Consistency
  4. 04
    Track-record length
  5. 05
    Trade count
  6. 06
    Source confidence
  7. 07
    Capital actually risked
  8. 08
    Rule compliance
Risk Score inputs
  1. 01
    Drawdown depth and length
  2. 02
    Worst-day loss
  3. 03
    Mandate headroom used
  4. 04
    Concentration
  5. 05
    High-risk exposure vs. budget
  6. 06
    Volatility of returns

In the MVP, part of the analytics is computed offchain and submitted by an authorized party. That is a trust assumption and we name it. Capital permissions never rely on a single server.

05stage 2

Stage 2 — One trader, one vault.

Investors choose exactly which trader they back. No shared pool. A vault moves through these states and every step is explicit.

  1. Createdvault exists
  2. Qualifyingscore being earned
  3. Fundraisinginvestors deposit
  4. Activetrading under limits
  5. Pausedlimit hit or emergency
  6. Liquidatingpositions unwound
  7. Closedinvestors redeem
06risk engine

The trader sets the mandate. The engine enforces it.

Every trader publishes a Risk Mandate before taking capital — max initial position, max active capital, high-risk budget, plus advanced limits. The risk engine checks each order against it before execution, next to the vault-level ceilings below.

Risk Mandate · example on $100,000
Total AUM$100,000 · 100%
Max active capital$60,000 · 60%
$40,000 stays outside positions
High-risk budget$15,000 · 15%
inside active capital, across all high-risk positions
Max initial position$2,000 · 2%
per new trade, any asset
  1. maxAUMHow much money the vault may hold
  2. maxPositionSizeBpsBiggest single bet
  3. maxDailyLossBpsMost it can lose in a day
  4. maxTotalDrawdownBpsMost it can lose from the peak
  5. maxLeverageBpsHow much borrowing
  6. maxAssetExposureBpsMost in one asset
  7. minCollateralRatioBpsSafety cushion
High-water markMax drawdown −10%Auto-stop
07capacity

Capacity grows in tiers.

Score opens each tier. Stake is required on top for the bigger ones. Stake alone opens nothing.

Capital capacity tiers
TierMin TraderScoreMin track recordPROOF stakeMax AUM
0 · Verified6014dNone$10K
1 · Funded7060d25,000$50K
2 · Senior80120d100,000$250K
3 · Principal90240d400,000$1M

Illustrative parameters. Final values are set by governance before mainnet and can change afterwards through governance.

08vault accounting

Fees only on new highs.

Deposits and withdrawals settle at a finalized price per epoch, so nobody can jump in before a gain or out before a loss. Performance fees use a high-water mark.

High-water mark · worked example
100120fee on +20105120130fee on +10HWM
  1. 1Start
  2. 2New high → fee on +20
  3. 3Drawdown → no fee
  4. 4Recovery → still no fee
  5. 5New high → fee on +10 only
LPs
75%
Trader
20%
Protocol
5%

Illustrative parameters. Final values are set by governance before mainnet and can change afterwards through governance.

Investors bear losses by share. No principal protection exists or is implied.

09assets

Not every asset is equal.

Each asset has a risk class, an oracle and its own limits. A thin memecoin pool never sets a vault's value. Tokenized stocks are a future class, gated on legal review.

  1. STABLE
  2. MAJOR_CRYPTO
  3. ALTCOIN
  4. MEMECOIN
  5. RWA
  6. UNKNOWN
10token

$PROOF — commitment, not a shortcut.

Fixed supply of 1,000,000,000, no inflationary APY, never the LP deposit asset and never required to start. Traders stake it as commitment — one input into Capital Capacity; LPs lock it for fee discounts and priority access; slashing is for provable malicious behaviour only, never for losses.

  1. 01
    Unlock capacityAfter the score.
  2. 02
    Skin in the gameLocked while managing capital.
  3. 03
    Slashed for cheatingNever for honest losses.
  4. 04
    Fee discountsProtocol fees, premium tools. The simulation stays free.
  5. 05
    GovernanceFees, tiers, adapters, treasury.
  6. 06
    Strategy creationAdvanced vault types, later.

Planned: 90% of the protocol's fee revenue — not of trading profits — is used for market buybacks of PROOF that are permanently burned; 10% goes to treasury / operations. This links usage to supply and promises nothing about price. No purchases or burns are executed today.

11governance

Who can do what.

Roles are separate so emergencies never wait on a vote.

  1. 01
    GovernanceFees, tiers, collateral, adapters, treasury, upgrades.
  2. 02
    Security councilEmergency pause and liquidation. Fast, narrow.
  3. 03
    Risk managerPer-vault limits within governance bounds.
  4. 04
    Oracle managerPrice feeds and deviation thresholds.
  5. 05
    AdminMinimal. Migrates to multisig + timelock.
12roadmap

Testnet first. Always.

Everything deploys to Robinhood Chain Testnet (46630) before Robinhood Chain (4663). Nothing that touches investor money ships before the parts that prove skill and enforce limits.

  1. 01

    Now

    Site, PROOF launch on a third-party venue.

  2. 02

    Next

    Simulation engine, Trader Score / Risk Score v1, public profiles.

  3. 03

    Then

    Vaults, risk engine, adapters, epoch settlement.

  4. 04

    Later

    Staking tiers, slashing, multisig + timelock.