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Based in Exeter - working across prop trading firms worldwide

Glossary · Compliance

Risk disclosure

  • Also called
  • risk warning
  • disclaimer
  • hypothetical performance disclaimer

What it means

In a prop firm, the risk disclosure appears in the footer of every page, at checkout and in the terms. It typically states that the firm provides simulated trading, that fees are paid for an evaluation service, that past performance does not indicate future results, and that the firm does not provide investment advice.

Futures prop firms often also carry the hypothetical performance legend set out in CFTC Rule 4.41 where simulated results are shown. Other jurisdictions have their own required or expected wording for financial promotions.

A disclosure only protects the firm if the rest of the site does not contradict it. A footer that says simulated next to a headline that says real capital is not a disclosure, it is evidence.

Related terms

Read these next.

Compliance

Marketing claims

Marketing claims are statements a prop firm makes to sell its programs, such as payout totals, pass rates, speed and income; each must be accurate, sourced and not misleading.
Evaluations

Simulated funded account

A simulated funded account is the post-evaluation account a prop firm gives a trader: trades run in a simulated environment and the firm pays performance rewards on results.
Compliance

CFTC

The CFTC (Commodity Futures Trading Commission) is the US federal regulator of futures, options and swaps markets, relevant to prop firms offering futures or US-facing products.
Compliance

FCA financial promotion

A financial promotion is a communication inviting someone into investment activity; in the UK, the FCA regime restricts who may make them and how, which affects some prop marketing.
The website

Trust center

A trust center is a website section that gathers a prop firm's company details, payout proof, policies, disclosures and review links in one place for traders and partners.

On your website

Where this shows up on a prop firm site.

Feature

Trust center

One place for the facts a cautious trader checks: the legal entity, address, people, policies, restricted countries and how payouts work.
Tool

Prop Firm Disclaimer Generator

Draft the simulated-trading and risk disclaimer every prop firm page needs, for your lawyer to review.
Guide

What Legal Documents Does a Prop Firm Need?

The legal set a prop firm launches with: terms, risk disclosure, simulated-trading notice, refund, payout, privacy, country and affiliate terms.
Guide

Prop Firm Legal Costs: Terms, Policies, Advice (2026)

What legal work costs a prop firm in 2026: terms, refund policy, risk disclosure, privacy and trademarks, with sourced ranges and quote-only items.

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