How to pass a Prop firm challenge: Step by Step Tutorial and Tips

The steps to pass a Prop firm challenge requires a structured process of rule compliance, risk control, and consistent performance execution. A prop firm challenge is a trading evaluation phase that assesses a trader’s ability to generate profit under predefined risk parameters using simulated capital. Prop firm challenges are structured in formats such as 1-Step, 2-Step, and Instant Funding models, each with distinct rules and verification stages. The evaluation typically includes a profit target between 5–10%, a maximum drawdown limit of 5–12%, and a trading duration ranging from 30 to 90 days, depending on the firm and account size.

Passing a prop firm challenge involves mastering rule adherence, strategy consistency, and emotional discipline under pressure. The preparation before attempting a prop firm challenge includes demo trading, forward testing the strategy, and reading the firm’s rulebook in detail. Practicing on demo accounts with similar parameters to the challenge helps simulate real conditions and refine execution. For instance, using a simulated 100K account with a 10% profit target and 5% drawdown limit replicates the exact evaluation criteria.

Prop firm challenges reward successful traders with funded accounts, profit splits ranging from 70% to 90%, and scaling plans that increase capital allocation over time. Traders who pass consistently gain access to capital without risking their own money, enabling them to trade professionally under institutional-grade conditions. Passing a prop firm challenge is a cumulative result of technical proficiency, risk discipline, psychological endurance, and operational precision. Each component must align with the firm’s evaluation criteria to achieve funding and transition into a funded trader role.

What is a prop firm challenge?

A prop firm challenge is a performance-based evaluation designed by proprietary trading firms to assess a trader’s ability to meet profit targets while managing risk within defined parameters. A prop firm challenge assigns traders a simulated account with virtual capital, commonly ranging from $10,000 to $300,000—and requires them to reach a profit target between 5% and 10% under strict risk constraints. Risk parameters include maximum daily loss limits (e.g., 4% of account value), overall drawdown limits (typically 8% to 12%), and time restrictions (usually 30 to 90 days). A prop firm challenge verifies a trader’s discipline, strategy consistency, and risk control by enforcing rules such as mandatory stop-loss use, minimum trading days (typically 5 to 10), and restrictions on news trading or overnight positions.

A prop firm challenge operates in one of three formats: instant funding, 1-step evaluation, or 2-step evaluation. Instant funding grants direct access to capital but evaluates performance in real-time. A 1-step challenge requires traders to meet targets in a single phase. A 2-step challenge involves an initial evaluation phase followed by a verification phase with lower risk thresholds or higher minimum trading days. Each structure filters undisciplined traders and selects only those who demonstrate consistent profitability and adherence to firm rules.

A prop firm challenge leads to a funded trading account if passed successfully. Funded accounts allow traders to use real capital provided by the firm and earn a percentage of the profits: 70% to 90%, and in some cases 100% as the conditions offered by Prop number one. Challenges serve as a cost-effective gateway for traders to access institutional-level capital, with entry fees ranging from $470 to over $1,000 depending on account size and firm. Prop firm challenges function as a structured gateway to professional trading careers by simulating real trading conditions and enforcing institutional-grade risk management.

What are the skills required to pass a prop firm challenge?

The skills required to pass a prop firm challenge are a defined set of technical, strategic, and psychological competencies that enable a trader to meet strict performance metrics without breaching risk parameters. Prop firm challenges measure a trader’s ability to generate profits consistently while operating within predefined drawdown, leverage, and time constraints. Each skill must align with the firm’s evaluation model, which typically includes a profit target between 5% and 10%, a maximum daily drawdown of 3% to 5%, and a total drawdown limit of 8% to 12% over 30 to 90 days.

Risk management is the most important skill required to pass a prop firm challenge because exceeding the drawdown threshold results in automatic disqualification. Traders must execute risk control by limiting exposure to 1% to 2% of account equity per trade, while maintaining risk-to-reward ratios of at least 1:2 or 1:3. Position sizing, stop-loss placement, and capital allocation strategies are necessary sub-skills that ensure risk remains within acceptable bounds.

Trading consistency is another core skill required to pass a prop firm challenge because most firms assess the distribution of profits across multiple trades rather than isolated gains. Many challenges require a minimum of 5 to 10 trading days to demonstrate sustained performance. Traders must avoid overtrading and align each trade with a predefined system to maintain statistical edge and execution discipline.

Psychological resilience is a non-technical but needed skill required to pass a prop firm challenge because emotional instability leads to impulsive decisions and rule violations. Traders must demonstrate patience during flat periods, composure during drawdowns, and restraint during winning streaks. Emotional control prevents revenge trading and overleveraging, which are common causes of failure. The skills required to pass a prop firm challenge must be integrated into a cohesive trading framework that prioritizes capital preservation, systematic execution, and emotional stability. Traders who combine these skills with a data-driven approach are statistically more likely to achieve funded status and maintain long-term profitability under real capital conditions.

Is It hard to pass a prop firm challenge?

Yes, it is hard to pass a prop firm challenge. The pass rate of prop firm challenges remains low, with only 5% to 10% of traders successfully completing the evaluation phases across most firms, according to 2025 statistics from PropFirmMatch. The difficulty of passing a prop firm challenge is mainly due to the strict rules, profit targets, and psychological demands embedded in the challenge structure.

The most common reasons for failure on passing a prop firm challenge include overtrading, revenge trading, breaking rules under pressure, and deviating from a tested strategy. Around 73% of failed traders blame the firm’s rules or market conditions rather than their own behavior, reflecting a widespread underestimation of the challenge’s rigor.

Steps & Instructions on How to pass a Prop firm challenge

Passing a prop firm challenge requires a methodical process of meeting profit objectives, adhering to drawdown constraints, applying consistent strategies, and demonstrating risk-aware trading behavior under evaluation conditions. Passing a prop firm challenge requires achieving a profit target set between 5% and 10% of the virtual account balance. 

For example, a $100,000 challenge account may require a $10,000 profit to pass a 10% target. Traders must meet this goal without violating the firm’s risk parameters. Daily drawdown limits are regularly capped at 3% to 5% of the account, while overall drawdown limits range from 8% to 12%. Exceeding either threshold results in immediate disqualification, regardless of profitability. The Steps and instructions on how to pass a prop firm challenge can be summarized on the following: Understanding the prop firm challenge rules, developing a proper trading strategy, and properly implementing a risk management strategy.

Step 1: Understand the Prop firm Challenge Rules

Understanding the prop firm challenge rules means identifying and adhering to the specific evaluation criteria set by proprietary trading firms for funded account qualification. Prop firm challenge rules define the operational boundaries within which traders must perform to demonstrate consistent profitability, disciplined risk control, and strategic decision-making.

Prop firm challenge rules include profit targets, which require traders to generate a return between 6% and 10% of the initial account balance during the evaluation phase. For instance, a $100,000 challenge account with a 10% target obligates the trader to earn $10,000 in net profit before advancing to the funded stage. Profit targets are fixed and must be achieved within the specified trading period. Prop firm challenge rules impose maximum daily loss limits, which restrict the trader from losing more than 4% to 5% of the account balance in a single trading day. For a $50,000 account, a 5% daily loss cap equates to a $2,500 maximum daily drawdown. Exceeding this threshold results in immediate disqualification regardless of prior gains.

Understanding the prop firm challenge rules in detail is mandatory because any violation—regardless of profitability—leads to immediate failure. Traders must thoroughly study the firm’s rulebook, clarify ambiguous terms, and structure their strategy to comply with every metric, limit, and condition from day one.

Step 2: Develop Your Trading Strategy

Developing your trading strategy is the foundational step to pass a prop firm challenge by aligning your trading behavior with the firm’s evaluation metrics. A trading strategy is a systematic framework that defines how a trader identifies setups, manages trades, and controls risk under specific market conditions. A prop firm challenge strategy must operate within strict parameters such as maximum drawdown limits, profit targets between 5% and 10%, and timeframes ranging from 10 to 90 days depending on the firm and challenge type.

A trading strategy for a prop firm challenge must define a clear trading style. The strategy must specify whether the trader will use scalping, intraday, swing, or position trading. The selection depends on the trader’s psychological profile, time availability, and the firm’s rules. 

A trading strategy must include well-defined entry and exit criteria. Entry rules must be based on repeatable technical patterns such as breakouts, pullbacks, or trend continuations, using tools like moving averages, RSI, MACD, or price action. Exit rules must include both stop-loss and take-profit levels with a minimum risk-to-reward ratio of 1:2 or preferably 1:3. A 1:3 ratio allows profitability even with a 33% win rate, which aligns with the statistical edge required to pass most challenges.

A trading strategy is a structured process that combines technical analysis, risk control, behavioral discipline, and performance tracking. A prop firm challenge strategy must be rule-based, backtested, risk-aligned, and psychologically sustainable to meet the firm’s funding criteria and secure long-term trading capital.

Step 3: Implement Risk Management Effectively

Executing risk management effectively is the most important step for passing a prop firm challenge because it ensures capital preservation and consistent performance under strict trading constraints. Prop firms impose rigid rules such as maximum daily drawdowns, total loss limits, and profit targets ranging between 5% to 10%, typically within 30 to 90 calendar days. Risk management in this context refers to the structured process of controlling trade exposure, minimizing losses, and aligning with firm-specific risk parameters to avoid disqualification.

Risk management for prop firm challenges begins with defining per-trade risk limits. Traders must risk no more than 1% to 2% of their total account balance per position. For example, in a $50,000 challenge account, the maximum risk per trade should not exceed $500 to $1,000. This constraint protects against breaching firm-imposed drawdown thresholds, such as a 5% daily loss limit or 10% total equity loss.

Risk management requires the use of stop-loss and take-profit orders. A stop-loss order automatically closes a losing trade at a pre-defined price level, limiting downside risk. A take-profit order secures gains once the market reaches a favorable price, removing emotional bias and maintaining trade discipline. Both tools are necessary for complying with the firm’s rules and achieving consistent outcomes.

Risk management includes applying favorable risk-to-reward ratios. A minimum ratio of 1:2 ensures that the potential reward is at least double the risk. For example, risking $100 to potentially earn $200 or more increases the probability of reaching the profit target without excessive trades. This ratio must be maintained across trade setups to meet challenge metrics efficiently.

Risk management is the foundation of passing a prop firm challenge because it aligns trading behavior with strict institutional standards. Traders who consistently apply risk controls demonstrate discipline, professionalism, and capital stewardship—qualities that prop firms prioritize when selecting funded traders.

How To Pass A 25K Prop Firm Challenge

Passing a 25K prop firm challenge requires executing a low-risk, high-discipline trading methodology that aligns with the firm’s evaluation metrics for profit, drawdown, and trading behavior. A 25K account challenge is a small-capital evaluation model that requires traders to generate a net profit target of 8% to 10%, equivalent to $2,000 to $2,500, within a fixed time frame of 30 to 45 calendar days. The challenge enforces strict capital preservation thresholds, including a maximum daily drawdown of 3% to 5% ($750 to $1,250) and a total equity drawdown cap of 10% ($2,500).

A 25K prop firm challenge requires traders to apply precise position sizing and fixed fractional risk models to maintain consistency and avoid breaching drawdown limits. Position sizing strategies must align with a 1% to 2% risk-per-trade rule, which translates to risking between $250 and $500 per trade. The trader must calculate lot sizes based on stop-loss distance and account risk tolerance, ensuring that every trade has a minimum reward-to-risk ratio of 2:1 or higher.

A 25K prop firm challenge requires traders to build psychological resilience by managing expectations, accepting losses, and focusing on process-based goals instead of outcome-based targets. The trader must develop a growth mindset, using each trade as feedback for skill refinement. Journaling emotional responses and identifying behavioral patterns are essential for long-term success. Passing a 25K prop firm challenge is a precision-based evaluation that tests the trader’s ability to generate sustainable returns under capital constraints, fixed risk parameters, and behavioral discipline. Success depends on structured execution, risk-controlled 

strategies, and adherence to the firm’s challenge rules.

How To Pass A 50K Prop Firm Challenge

Passing a $50K prop firm challenge requires meeting predefined trading objectives while strictly adhering to the firm’s risk management parameters. A $50K prop firm challenge is a structured evaluation process where traders must demonstrate consistent profitability under simulated conditions using a virtual $50,000 account. The challenge verifies a trader’s ability to manage capital, control drawdowns, and follow trading rules over a specified timeframe, typically 30 to 60 days.

Passing a $50K prop firm challenge involves achieving a profit target of 8% to 10%, which translates to $4,000 to $5,000 in net gains from the initial balance. The challenge imposes a maximum drawdown limit between 5% to 10%, meaning losses cannot exceed $2,500 to $5,000 cumulatively. Most firms enforce a daily loss limit of 2% to 4%, equivalent to $1,000 to $2,000, to prevent overexposure. A minimum of 5 to 15 trading days is required to validate consistency across different market conditions.

Risk management in a $50K prop firm challenge demands precise control of position sizing and exposure. Traders must cap risk per trade between 0.5% and 1%, equating to $250 to $500 per position. Each trade must include a hard stop-loss and a minimum risk-to-reward ratio of 1:2 to ensure statistical profitability. Position sizing should align with volatility and stop-loss distance, typically using 0.5 to 2.0 standard lots depending on asset class and strategy.

Trading strategy implementation must emphasize quality setups over quantity. Traders should aim for a steady equity curve with a monthly growth target of 2% to 3%, or $1,000 to $1,500. The strategy must avoid clustering trades in the same market direction and prevent overleveraging. Firms frequently restrict trading during high-impact news events, prohibit holding trades over weekends, and limit the use of Expert Advisors or copy trading tools. Some firms allow overnight positions and hedging, depending on the evaluation model.

Psychological discipline during a $50K prop firm challenge is necessary for sustained performance. Traders must avoid revenge trading after losses, resist the urge to overtrade after wins, and maintain emotional neutrality. Documenting every trade in a journal with entry rationale, exit logic, and outcome analysis supports performance review and behavioral correction. Traders must treat the $50K evaluation as a real capital environment, not a demo simulation.

To pass a $50K prop firm challenge, traders must combine statistical edge, disciplined execution, and strict adherence to rules. The evaluation is not a test of luck or aggressiveness but a verification of skill, patience, and risk control. Traders who consistently apply a structured trading plan, respect drawdown limits, and adapt to firm-specific constraints maximize their probability of success. 

How To Pass A 100K Prop Firm Challenge

Passing a $100K prop firm challenge requires meeting structured evaluation criteria, applying strict risk management, and executing a consistent trading plan aligned with the firm’s rules. A $100K prop firm challenge is a capital evaluation process offered by proprietary trading firms to assess a trader’s ability to manage a six-figure demo account under predefined conditions. The challenge is typically divided into a one-phase or two-phase model, each with distinct profit targets, drawdown thresholds, and trading day requirements.

A one-step $100K challenge requires reaching a 10% profit target ($10,000) without exceeding a 5% daily drawdown or 10% maximum drawdown from the initial balance. A two-step $100K challenge involves two sequential objectives: Phase 1 demands a 10% return ($10,000), while Phase 2 requires a 5% return ($5,000), both within a timeframe ranging from 30 to 60 days. 

Passing a $100K prop firm challenge requires traders to implement a risk-per-trade limit of 1%, which equates to $1,000 per position, to preserve capital and stay within the firm’s risk parameters. Risk-to-reward ratios must be optimized above 1:2 to ensure profitability over time. Position sizing must be dynamically adjusted based on stop-loss distance, volatility, and asset-specific leverage. For instance, using a 2-lot size on EUR/USD with a 50-pip stop-loss at 1% risk is a standard configuration.

Passing a $100K prop firm challenge requires a comprehensive approach combining technical precision, emotional stability, and strategic adaptability. Adhering to firm rules, managing capital responsibly, and executing a repeatable trading plan are essential to secure funding and transition into a professional trading career.

How To Pass A 300K Prop Firm Challenge

Passing a 300K prop firm challenge requires a high level of trading discipline, precise risk management, and strict compliance with evaluation parameters defined by the proprietary trading firm. A 300K prop firm challenge is a capital evaluation program that grants access to $300,000 in simulated trading capital after meeting specific profit targets, drawdown limits, and trading behavior rules. The evaluation type can be either a 1-step or 2-step model, depending on the firm, each with its own performance metrics and risk protocols.

A 1-step 300K prop firm challenge requires traders to reach a profit target while staying within the maximum drawdown limits during a single evaluation phase. A 2-step challenge splits the evaluation into two distinct phases: an initial profit target phase followed by a verification phase with a reduced target but continued adherence to risk controls. Firms like Elite Trader Funding charge $655 for a 1-step 300K challenge, while others may vary based on the platform and features offered.

Profit targets in 300K prop firm challenges typically range between 8% and 10% of the account value, equating to $24,000–$30,000 in net profit. Maximum daily drawdown limits are commonly set at 4%–5%, translating to $12,000–$15,000, while overall drawdown caps are set at 8%–10%, or $24,000–$30,000. Traders must calculate and maintain position sizes that align with these thresholds, regularly risking between 0.5% and 1% per trade to preserve capital and avoid disqualification.

Passing a 300K prop firm challenge demands consistent performance across a 60–90 day evaluation window. This extended period allows traders to plan trades methodically, avoid overtrading, and adapt to varying market conditions. The challenge prohibits impulsive behavior such as revenge trading or over-leveraging, which can result in immediate failure even if the profit target is achieved.

Trading strategy development for a 300K prop firm challenge must incorporate multi-timeframe analysis, macroeconomic context, and technical entry/exit criteria. Strategies must be backtested across historical data and forward-tested in live conditions to ensure stability. Firms expect traders to demonstrate rule-based decision-making rather than discretionary or 

To pass a 300K prop firm challenge, traders must execute a strategy that aligns with the firm’s rules, maintain strict risk parameters, and demonstrate consistency over time. Success in this challenge provides access to high-capital trading environments and the potential for significant profit sharing, making it a critical milestone for professional traders seeking institutional-level funding. 

What to know before starting a prop firm challenge

The things to know before starting a prop firm challenge refers to the essential conditions, evaluation structures, and psychological readiness that a trader must assess and internalize before attempting to pass a proprietary trading firm’s evaluation process. Prop firm challenges are structured trading evaluations with defined rules, including profit targets between 5% to 10%, maximum drawdown limits of 4% to 10%, daily loss limits of 4% to 5%, and time constraints ranging from 10 to 90 calendar days depending on the firm and challenge type. Challenge types include Instant Funding, 1-Step, 2-Step, and 3-Step evaluations, each with unique complexity levels and verification phases that determine the trader’s readiness and discipline under strict risk protocols.

Understanding the essential conditions, evaluation structures, and psychological readiness  before starting a prop firm challenge improves a trader’s probability of success by aligning strategy, psychology, and execution with firm requirements. Traders who internalize these factors and prepare accordingly reduce the risk of disqualification and increase their chances of becoming consistently funded professionals.

How to choose the best Prop trading firm

Choosing the ideal Prop trading firm depends on evaluating specific firm characteristics that align with a trader’s strategy, risk tolerance, and capital requirements. Prop trading firms differ in their challenge structures, funding tiers, payout models, trading platforms, and operational transparency. The best firm for one trader may not suit another, making a structured comparison essential for a successful selection.

The best Prop trading firm offers funding options that match the trader’s financial goals. The things to consider for choosing the best Prop trading firm requires comparing funding levels, evaluation models, risk parameters, payout structures, trading conditions, platform compatibility, and firm reputation. Traders increase their chances of success by selecting firms whose rules, costs, and support systems align with their trading style and financial objectives.

What is the cheapest prop firm?

The cheapest prop firm is defined by its lowest entry cost, minimal recurring fees, and accessible account sizes starting from $5,000 to $10,000 for as low as $50 to $100. A cheap prop firm offers a cost-efficient evaluation model with a one-time payment structure and fewer add-on services. Some of the cheapest prop trading firms include firms that provide limited-time promotions, free trial accounts, or demo accounts with no upfront cost, allowing traders to test strategies without financial commitment.

Budget-friendly prop firms reduce financial barriers by offering basic two-step or one-step challenges with simplified rules, lower minimum profit targets (5%), and relaxed time constraints. Firms such as Prop number one, MyFundedFX, E8 Funding, and The Trading Pit have been reported to offer entry-level challenges under $100 for small accounts, according to community data and trader reviews.

Choosing the cheapest prop firm requires evaluating the total cost of participation, including hidden fees, reset charges, platform access, and payout conditions. A prop firm with a slightly higher challenge fee but a higher profit split (up to 90%) or better scaling plan may offer better long-term value than the absolute lowest-cost firm.

The cheapest prop firm must be selected based on a trader’s strategy compatibility, required account size, risk tolerance, and platform preference. Traders should verify the firm’s legitimacy, funding model, and support system before purchase to avoid misleading offers or low-quality services.

How long does it take to pass a Prop firm challenge?

The time it takes to pass a Prop firm challenge depends on the challenge structure, but most traders complete it within 30 to 60 calendar days. Most prop firm challenges define a fixed evaluation period, with one-step challenges typically lasting 30 days and two-step challenges requiring up to 60 or 90 days to complete both phases. The time to pass is constrained by the firm’s trading period rules, which commonly range between 30-day minimums and 90-day maximums, depending on the firm and funding tier. 

The time required to pass a prop firm challenge is influenced by trader behavior and market conditions. Traders employing intraday strategies or scalping techniques may reach profit targets within 7 to 14 days under high-volatility market conditions. Conversely, swing traders holding positions over multiple sessions may require the full duration. Profit targets also determine the time required—challenges with 8% to 10% profit goals take longer than those with 5% to 6% targets.

What happens after passing a prop firm challenge? 

After passing a prop firm challenge, the funded trader receives a funded account and enters into a profit-sharing agreement with the proprietary trading firm. A funded account is a live trading account backed by the firm’s capital, ranging from $25,000 to $300,000, depending on the challenge level completed. The trader transitions from simulated trading to managing real capital, while remaining subject to the firm’s risk parameters—including maximum drawdown limits, daily loss thresholds, and trade consistency requirements.

Once the funded trader gains access, he/she enters a verification phase before full funding is granted. The verification phase lasts 10 to 30 trading days and requires the trader to demonstrate consistent strategy execution, controlled risk exposure, and adherence to the firm’s trading rules. Only after successful verification does the trader gain access to full capital allocation and profit withdrawals.

The access to a prop firm as a funded trader enables traders to build a professional trading career using institutional capital, without risking personal funds, while maintaining long-term access to growth opportunities and financial independence.

What happens if you fail passing a prop firm challenge? 

Failing a prop firm challenge results in disqualification from the funded trader program and the forfeiture of the entry fee paid to access the evaluation. A prop firm challenge is a structured evaluation phase where traders must meet specific criteria such as profit targets, maximum drawdown limits, and rule compliance within a defined trading period, typically between 30 and 90 days. If a trader violates any of the firm’s trading rules—such as exceeding a daily loss limit (typically 4–5%), breaching the total drawdown threshold (commonly 8–10%), or failing to reach the profit target (usually 5–10%)—the challenge is terminated, and the trader is not granted access to a funded account. Industry data suggests that 90% to 95% of traders fail their first challenge attempt, emphasizing the importance of preparation, emotional discipline, and risk control.

What are the best books and tutorials to help you pass prop firm challenges?

The best books and tutorials to help you pass prop firm challenges provide traders with strategic frameworks, psychological conditioning, and risk control techniques required to meet profit targets and drawdown thresholds. Books that help pass prop firm challenges include “Trading in the Zone” by Mark Douglas, which develops emotional control and mental discipline, and “One Good Trade” by Mike Bellafiore, which explains professional trading setups and decision-making processes used in proprietary trading environments. “The Disciplined Trader” by Mark Douglas reinforces risk-centric thinking and behavioral consistency. “Trade Your Way to Financial Freedom” by Van K. Tharp provides statistical modeling and position sizing strategies aligned with prop firm risk parameters. “Technical Analysis of the Financial Markets” by John J. Murphy offers charting techniques, trend analysis, and indicator-based entry systems applicable to most prop firm platforms.

Tutorials that help pass prop firm challenges include proprietary trading masterclasses on Udemy, which teach challenge-specific tactics like equity curve management and leverage optimization. Risk management tutorials for prop traders focus on maintaining 1% risk per trade and achieving a minimum 2:1 reward-to-risk ratio.

What are the benefits of becoming a funded trader?

The benefits of becoming a funded trader include access to institutional capital, elimination of personal financial risk, and the opportunity to earn high profit splits without needing personal trading funds. Funded trading is a performance-based trading model that allows skilled traders to operate with proprietary firm capital after passing a qualification challenge. Funded traders are evaluated on strict criteria such as risk management, consistency, and drawdown control, which reinforces disciplined trading behavior.

Becoming a funded trader through a prop firm grants access to trading accounts ranging from $10,000 to over $1,000,000, enabling position sizing that exceeds personal capital constraints. Funded traders retain between 50% and 90% of the net profits generated, depending on the firm’s payout structure, and in some cases 100% of profit split.