Prop Firm Software Contract Checklist: 20 Terms to Resolve Before Signing

A demo proves what the software can do today. The contract determines price, responsibility, access and exit when things change. Use this checklist to identify questions for your legal/commercial review.

Commercial terms

1. Setup fee: amount, trigger and refundability.
2. Recurring fee: billing unit and payment timing.
3. Usage definition: active account/trader/credit methodology.
4. Percentage base: exact definition of revenue, net revenue or net profit.
5. Price changes: notice and limits during/after term.
6. Third-party costs: which platform, KYC, data and payment charges are excluded.

Term and termination

7. Minimum term: month-to-month, fixed term or annual.
8. Renewal: automatic renewal and notice deadline.
9. Termination for convenience: whether and when permitted.
10. Termination for breach: cure period and material-breach definition.

Service and support

11. SLA: measured service, uptime, exclusions and remedy.
12. Support: hours, channels, severity and escalation.
13. Third-party outage: responsibility for trading/KYC/PSP dependency failure.

Data and technology

14. Data rights: ownership/use/export/deletion.
15. Retention: access window after termination.
16. IP: ownership of core software, configuration and custom work.
17. Security: contractual controls, incident notification and subprocessors where applicable.

Exit and liability

18. Migration assistance: scope, timing and price.
19. Liability: cap, exclusions and applicable remedies.
20. Governing law/disputes: jurisdiction and process.

Examples of why public terms matter

PropsEngine's public terms include a 99.5% monthly uptime target excluding maintenance, a liability cap tied to fees from the preceding three months and a 90-day post-termination data-retention period. Its setup fee is stated as non-refundable once onboarding has commenced. These provisions illustrate why a pricing page alone is insufficient procurement evidence.

Asgard publicly distinguishes vendor-owned source code from client-owned/exportable trader data. PropSuite distinguishes its underlying platform architecture from client branding/customization. Different vendors can therefore use “white label” while granting materially different rights.

Percentage contracts require definitions, not labels

If compensation is based on net profit or net revenue, the contract should define allowed deductions, refunds/chargebacks, payment fees, payout treatment, taxes, timing, reporting, audit rights and negative periods. A percentage without a defined base is not a usable commercial model.

Use the contract to close demo gaps

If a feature, migration promise, support response or integration was essential to the purchase, ensure it appears in the signed order form/SLA or other governing document rather than relying solely on sales correspondence.

Pair this checklist with our demo tests, data ownership guide and SLA guide.

FAQ

Can this checklist replace a lawyer?

No. It is a procurement checklist, not legal advice. Use qualified counsel for the actual agreement and applicable law.

Which contract term is most important?

It depends on the business, but pricing definitions, service responsibility, data/exit rights and termination terms often have long-lived consequences.