Cut payout liability by 30-50%, without rejecting a single trader. Without tightening a single rule. Just skill-weighted math.
Modern prop firms are caught between two bad choices: tighten rules until traders revolt, or eat payouts that exceed challenge revenue. There's a third option. Assign profit splits dynamically based on trade quality. Reward the disciplined traders publicly with 100% payouts. Quietly reduce splits for gamblers, scalpers, and news-trade lottery winners. The aggregate liability drops to your target. The best traders become your marketing. The system does the math.
Most prop firms run an 80% profit split. Sounds reasonable. Until the cohort that gets funded includes news-trade lottery winners, oversized-position gamblers, and scalpers who happened to ride a directional week. Their PnL is real. Their payout is now your problem.
When monthly payouts approach (or exceed) challenge revenue, the standard playbook is to tighten rules. Tighter daily DD. Consistency rules. Lot-size restrictions. News-trading bans. Each new rule produces three things: more rejections, more negative reviews, and declining new signups. The model breaks from both ends.
The traders who deserve their payouts get penalized along with the gamblers. Customer trust craters. Your top performers churn first because they have options. You end up keeping the gamblers and losing the professionals.
Every trader. Every account. Every day. A Quality Score based on 15+ metrics. Profit splits assigned by skill, not by accident.
Arizet Payout Protection connects to your trading data, broker API or daily CSV, and calculates a Quality Score for every funded account. The score weighs 15+ trade-quality metrics like news-trading concentration, single-instrument dependency, position-size variance, stop-loss adherence, intra-day Sharpe, daily P&L concentration, and many more.
You set a target aggregate payout liability for the period. The system automatically assigns profit splits across your funded trader base. High-quality traders get more (up to 100%), low-quality traders get less (down to 0%), and the aggregate liability lands at your target. No rules changed. No traders rejected. No revolts.
A typical mid-size prop firm has 10 funded traders generating $50K each in profits this month. Standard flat 80% split = $400K payout liability. Or set a $300K target and let Payout Protection figure out how to get there.
Gambler at top of list. Disciplined trader in middle. All paid 80%. Nobody's incentive aligned.
Same traders, same PnL, different splits. Best performers celebrated at 100%. Liability hits target.
No platform migration. No trader notification required. Runs on top of your existing infrastructure.
We ingest your closed trades (and optionally open positions) via your broker API or a daily CSV dump. Standard integrations for MT5, cTrader, Match-Trader, DXTrade. New integrations in 3 days.
Your trader doesn't see anything change. Their existing accounts, accounts numbers, and platform stay identical.
Every funded account gets a Quality Score on a 0-100 scale, calculated daily across 15+ metrics. Multi-account traders are deduplicated. Gaming via account spread is impossible.
Scores are auditable. You see every metric, every weight, every trader. So do they, if you choose to expose it.
Set your aggregate payout liability target. The system solves for the optimal profit-split assignment that hits your target while preserving the rank-ordering of Quality Scores.
Top-quality traders get 100%. Bottom-quality traders get less. Aggregate lands at your target. Done.
The Quality Score is the output of the Meritix engine, Arizet's proprietary skill-weighted profit-split system. It weighs more than 15 distinct dimensions of trading behavior. Each metric is auditable. Each weight is published. The math is defensible to your regulators, your traders, and your investors.
A score of 100 means the trader is everything a prop firm hopes for: diversified, disciplined, profitable from real edge, not luck or gaming. A score of 10 means the opposite: lottery-style gains the firm should not subsidize at 80%.
Quality Scores are recalculated daily. They reflect the most recent 30 trading days with weighted recency. Traders who improve see their scores rise, and their next payout split with it.
Disciplined professional. Diversified across 6 instruments. Stop-loss adherence 94%. Intra-day Sharpe 1.4. News-event PnL concentration 8%. No single trade >7% of period P&L.
% of P&L from ±X minutes around major scheduled releases. High value = lottery-style trading penalty.
% of trades with hold time below threshold. Penalized only when combined with low Sharpe (noise trading).
% of P&L from single most-traded instrument. Single-asset edge is regime-fragile.
% of total P&L from biggest single trading day. High value = lucky day, not sustainable edge.
% of P&L from single largest trade. High value = lottery winner, not consistent earner.
Mean trade return divided by standard deviation. Measures consistency of edge.
% of trades opened with a stop-loss set. Discipline indicator.
Coefficient of variation of trade sizes. High = gambling-style escalation.
% of capital at risk per trade. Pro range 1-2%. 5%+ = gambler classification.
Max peak-to-trough drawdown relative to peak gains. Risk management discipline.
Largest simultaneous open position relative to account capital. Concentration risk indicator.
% of P&L from low-liquidity periods. Often exploits broker spread/slippage windows.
Holding sizeable positions over major scheduled events. Lottery-style risk-taking.
Detection of one human running multiple "diversifying" accounts. Severe penalty if matched.
Additional metrics tuned to your specific risk concerns. Co-designed in onboarding.
The traditional prop firm pitch is "pass our challenge, get funded, earn 80%." The Payout Protection pitch is stronger:
"The top 20% of our funded traders get 100% of their profits. We celebrate them publicly. We pay them every dollar they earn, and we have the receipts to prove it."
This is the marketing message your competitors can't match. They can't pay 100% because their economics don't allow it. You can, because the savings on lower-quality traders fund the upside for higher-quality ones.
You create a visible aspirational ceiling. Disciplined trading earns you not just a payout, but maximum payout, with public recognition. That's the trader audience's dream. You sell that dream credibly, not aspirationally.
The customer-facing application most firms build on top of Meritix is the Freedom Challenge. A challenge tier with deliberately relaxed rules and aggressive payout language, marketable as "easier evaluation, bigger upside." The rules look generous on the landing page; Meritix protects your aggregate economics on the back end, regardless of how generously the customer-facing rules read.
"We're the only prop firm that pays our top traders 100%." Demonstrable, defensible, magnetic.
"My Quality Score earned me a 100% split this month. I'm becoming a featured trader." Engagement that matters.
"My split dropped because my Sharpe is below average. Here's exactly what to fix." Educational, not punitive.
"Aggregate payout liability is now within target. Margins stable. Customer churn down."
The reason this works where rule-tightening fails: it's measurably fair. Every component is auditable, every weight is published, every score is reproducible.
Every metric, weight, and formula is published. Traders can replicate their own Quality Score with a calculator.
Every component is empirically grounded. Sharpe ratio, drawdown, concentration, adherence. Defensible to any regulator.
30-day rolling window with weighted recency. A trader who improves sees their score and split rise. No permanent punishment.
This isn't "everyone gets less." Best traders get MORE than the 80% baseline. The math celebrates skill, doesn't just punish gambling.
20-minute demo. We model your actual portfolio (under NDA) and show you what your liability would look like with Quality-Weighted splits applied this month. No commitment to integrate. Just data.