# Evaluation model

> A prop firm business model in which traders pay a fee to attempt an evaluation, and those who pass trade a funded account for a share of the profits.

**Source:** https://proptechpal.com/glossary/evaluation-model  
**Generated:** 2026-09-24  
**Publisher:** Prop Tech Pal — independent prop firm technology comparison

_Disclosure grades measure what a vendor publishes, never product quality. A vendor publishing a weak SLA scores better than one publishing none._

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Also called: challenge model, funded trader programme

## Why it matters

Most of the revenue is evaluation fees, and most payouts are funded from it. That is why the risk engine, the payment processor and the payout process are the core of the technology stack rather than the trading platform alone.

## Where it applies

- [Prop firm risk management software](https://proptechpal.com/categories/risk-management)
- [How much it costs to start a prop firm](https://proptechpal.com/guides/cost-to-start-a-prop-firm)

[The full glossary](https://proptechpal.com/glossary)