# Creating Proposals

Create funding offers for traders.

## Prerequisites

* Connected wallet with USDC on Arbitrum
* Identified trader to fund
* Understanding of risk parameters

## Proposal Parameters

### Capital Amount

| Tier         | Range           |
| ------------ | --------------- |
| Minimum      | $1,000 USDC     |
| Conservative | $1,000-$5,000   |
| Moderate     | $10,000-$50,000 |
| Aggressive   | $100,000+       |

Start small with untested traders.

### Profit Share

| Split | Use Case                           |
| ----- | ---------------------------------- |
| 70/30 | Newer traders, higher risk         |
| 80/20 | Industry standard, skilled traders |
| 90/10 | Proven, high-performing traders    |

**Example**:

* Capital: $10,000
* Profit: $2,000
* Your Share (20%): $400
* Trader Share (80%): $1,600
* Your Payout: $10,400

### Duration

| Term   | Range      | Use Case          |
| ------ | ---------- | ----------------- |
| Short  | 7-14 days  | Test new traders  |
| Medium | 30-60 days | Standard duration |
| Long   | 90+ days   | Proven traders    |

### Max Drawdown

Maximum loss from peak before auto-pause.

| Setting      | Range  | Risk Profile                        |
| ------------ | ------ | ----------------------------------- |
| Conservative | 15-20% | Tight control, capital preservation |
| Moderate     | 20-25% | Balanced, standard for most deals   |
| Aggressive   | 25-30% | More flexibility, higher risk       |

**Example**:

* Initial: $10,000
* Max Drawdown: 20%
* Pause Trigger: $8,000

### Daily Drawdown

Maximum loss in any 24-hour period.

| Setting      | Range | Profile           |
| ------------ | ----- | ----------------- |
| Conservative | 5%    | Tight protection  |
| Moderate     | 7-8%  | Normal volatility |
| Aggressive   | 10%   | High tolerance    |

Resets at midnight UTC.

## Creating a Proposal

### Step 1: Navigate

Go to **Funding** > **Create Proposal**

### Step 2: Select Trader

**Option A**: Browse traders on the leaderboard and check their performance metrics

**Option B**: Enter trader wallet address directly

Look for:

* Consistent profitability
* Reasonable drawdowns
* Matching trading style
* Track record

### Step 3: Configure Terms

Fill in:

* Trader wallet address
* Capital amount (USDC)
* Your profit share percentage
* Duration in days
* Max drawdown limit
* Daily drawdown limit

### Step 4: Reserve Address

Click **Reserve Address** to get a unique vault address for your proposal. This address is valid for 1 hour.

### Step 5: Transfer USDC

Transfer your capital to the provided vault address:

1. Open your wallet (MetaMask, Rabby, etc.)
2. Send USDC on Arbitrum to the vault address
3. Wait for transaction confirmation

### Step 6: Confirm & Create

1. Enter your USDC transfer transaction hash
2. Click **Confirm Funding**
3. Proposal is created and sent to trader

### Step 7: Wait for Trader

Trader can:

* **Accept**: Vault activates, trading begins
* **Decline**: Proposal canceled, USDC refunded
* **Ignore**: Proposal expires (you can cancel and reclaim funds)

## After Acceptance

When trader accepts:

1. Vault activates automatically (2-5 minutes)
2. USDC bridges to Hyperliquid
3. Trading is enabled
4. Risk monitoring begins

**Monitor your investment** in the Vault Dashboard:

* Real-time balance
* Current drawdown
* Trade history
* Open positions

## Managing Proposals

### Cancel Pending Proposal

Before trader accepts:

1. Go to **Funding** > Find your proposal
2. Click **Cancel Proposal**
3. USDC will be refunded

### Modify Terms

Cannot modify existing proposals. To change terms:

1. Cancel current proposal
2. Create new one with updated terms

## Best Practices

**First partnerships**:

* Start with $1k-$5k
* Use 20% max drawdown
* Choose 30-day duration

**Risk management**:

* Diversify across 3-5 traders
* Mix conservative/aggressive strategies
* Monitor weekly

**Optimal limits**: 20-25% max drawdown, 5-7% daily

## Risks

**Market risk**: Crypto volatility can cause 20%+ daily moves

**Trader risk**: Poor decisions or strategy failure

**Protection**: Drawdown limits prevent total loss

**Mitigation**:

* Set reasonable limits (15-20%)
* Diversify across traders
* Start small
* Monitor regularly

## FAQ

**Can I withdraw before deal ends?** Only by closing the vault, which requires closing all positions first.

**What if trader loses all capital?** Drawdown limits prevent total loss. Worst case with 20% limit: receive $8k of $10k.

**Can I fund multiple traders?** Yes. Create separate proposals for each trader.

**How to evaluate traders?** Check their Atract Score, Sharpe ratio, max historical drawdown, win rate, and trade frequency on the leaderboard.

**What if my reservation expires?** No funds lost if you haven't transferred yet. Simply reserve a new address.

## Next Steps

* [Vault Lifecycle](/funding-and-vaults/vault-lifecycle.md)
* [Profit Sharing](/funding-and-vaults/profit-sharing.md)
* [Risk Controls](/trading/risk-controls.md)


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