Prop firm profit splits explained
8 min read
The profit split is the number every prop firm advertises, and on its own it tells you remarkably little.
A generous-looking percentage attached to restrictive conditions pays less than a modest one paid promptly and without argument. The headline is the easy part to get right.
This article covers what the number means, and then the four conditions that decide whether the advertised percentage is what you actually receive.
What the split pays
The split is the share of profit a funded trader keeps. The firm takes the remainder as its return for putting capital behind the trader. It applies to profit only — losses are not shared, which is the asymmetry that makes the arrangement worth having at all.
Every tier here pays 80%. Deliberately one number rather than a ladder: a split that improves with tier price turns the catalogue into a mechanism for upselling, and the tier you buy should reflect the drawdown room your strategy needs rather than how much of your own profit you are willing to forfeit.
| Tier | Fee | Max drawdown | Profit split |
|---|---|---|---|
| Starter 1-Step | $139 | 6% | 80% |
| Standard 1-Step | $239 | 8% | 80% |
| Pro 1-Step | $339 | 10% | 80% |
| Starter 2-Step | $129 | 8% | 80% |
| Standard 2-Step | $219 | 10% | 80% |
| Pro 2-Step | $319 | 12% | 80% |
The split column is identical all the way down. What the price buys is the drawdown column: more room to be wrong, at the same share of whatever you make.
Four conditions that decide what the number is worth
- Minimum payout thresholds. A high floor can strand a modest profit indefinitely, so it is never paid at any split.
- Payout frequency. A percentage paid monthly and the same percentage paid annually are not equivalent offers.
- What resets on payout. If the account's high-water mark or drawdown allowance moves against you afterwards, the second payout is harder than the first.
- Who decides you qualify. A split is only as real as the process that authorises it.
Settlement is part of the split
A split is a promise until it settles. The industry's recurring complaints are rarely about the percentage — they are about payouts delayed, reduced on review, or refused on a rule surfaced after the fact.
Here the 80% is settled on chain in USDT, against a verdict anchored publicly. That does not make the percentage more generous. It makes it checkable, which is a different and more useful property: the amount owed follows from a recorded verdict rather than from a decision you cannot inspect.
Common questions
- What is a prop firm profit split?
- It is the share of trading profit a funded trader keeps, with the firm taking the remainder. It applies to profit only; losses are not shared with the trader, which is the asymmetry that makes the arrangement worthwhile.
- What profit split do cats.fund traders receive?
- Funded traders keep 80% of the profit they generate, and the same split applies to every tier. A more expensive evaluation buys a larger drawdown allowance rather than a better share of profit.
- Why do some firms offer a higher split on expensive tiers?
- It is an upselling mechanism. Tying the split to the tier price encourages traders to buy a larger evaluation than their strategy needs. A single split across all tiers keeps the purchase decision about drawdown room, which is what genuinely differs between them.
- Is a higher profit split always better?
- No. A high percentage attached to a high minimum payout threshold, infrequent payout windows, or a discretionary approval process can pay less in practice than a lower split settled promptly and automatically. Read the conditions before comparing percentages.
- How is the profit share paid out?
- Payouts settle on chain in USDT against a verdict anchored publicly, so the amount owed follows from a recorded result rather than from an internal decision a trader cannot inspect.