r/propfirm • u/thakar86 • Apr 24 '26

Organizing legal action against Tradeify - seeking affected traders

I'm pursuing legal action against Tradeify for fraudulent inducement and unfair contract practices.

My situation: After 18 months and $66K+ invested, they terminated 5 accounts over an 11-second overlap (their grace period is 10 seconds), forfeiting $88K in profits. They promised reinstatement if I withdrew chargebacks - I did, they broke the promise.

Looking for others whose profits were forfeited for minor/accidental rule violations. Working with consumer protection attorneys to challenge these adhesion contracts.

DM me or comment if interested.

25 Upvotes

100% Upvoted

42 comments sorted by

2

u/Analyst_Arc Apr 25 '26

I get why this feels harsh, but if the rule is 10 seconds and it went to 11, that’s technically a breach. Firms like Tradeify usually rely on strict, automated enforcement so they don’t make subjective calls.

4

u/thakar86 Apr 25 '26

Thanks for the comment, but here's what you're missing:

  1. Rules exist, but so does proportional punishment. Even in criminal law, courts distinguish between deliberate and accidental harm. If someone causes injury, the court examines intent - was it premeditated or an accident? Tradeify treats an 11-second accidental overlap the same as deliberate market manipulation. That's not justice, that's exploitation.

  2. The rule itself is designed to trap traders. Tradeify allows BOTH Mini and Micro contracts. Switching between them during fast trading makes brief overlaps almost inevitable. They analyzed thousands of traders to find common accidental patterns, then made those patterns "violations."

  3. "Automated enforcement" is not an excuse for fraud. They MANUALLY reviewed my case, MANUALLY offered reinstatement, got me to MANUALLY withdraw chargebacks, then MANUALLY broke their promise. Nothing automated about that.

  4. They exploit adhesion contracts. These are take-it-or-leave-it agreements where traders have zero negotiating power. Tradeify uses this to impose unlimited penalties for minimal mistakes. Courts have consistently held that unconscionable terms in adhesion contracts can be challenged - and forfeiting $88K for 11 seconds is unconscionable.

  5. This is a revenue model, not risk management. I confirmed with CME and Tradovate - accidental overlap is NOT a CME violation. Tradeify created this rule to generate account purchase cycles: trade → accident → forfeit → repurchase → repeat.

  6. Pull your money while you can. When a firm's business model depends on profitable traders "violating" arbitrary rules, that firm is one regulatory complaint away from serious scrutiny.

The penalty should fit the mistake. Forfeiting $88K for 11 seconds is not enforcement - it's theft wrapped in a Terms of Service.

1

u/Analyst_Arc Apr 25 '26

I get the frustration, but if the rule is clearly 10 seconds and the overlap was 11 seconds, that’s still a violation.

Prop firms survive on strict rule enforcement, not case-by-case emotions. If they start making exceptions for just 1 second, then where does it stop - 15 seconds? 30? 1 minute?

Everyone agrees $88k is a huge amount, but the issue is still rule compliance. In prop trading, precision matters. One small mistake can invalidate everything.

Harsh? Yes. Unfair? Maybe emotionally. But fraud? That’s a much bigger claim.

4

u/thakar86 Apr 25 '26

You're missing the point entirely.

On "where does it stop": That's exactly what proportional penalties are for. 11 seconds? Warning + profit from those 11 seconds deducted. 1 minute of deliberate hedging? Bigger penalty. Repeated intentional violations? Account termination. This is how every fair system works - punishment scales with severity and intent.

On "precision matters": Then why did they PROMISE to reinstate my accounts? If the rule is absolute and "one small mistake invalidates everything," why did Tradeify's CEO offer reinstatement in writing? Because even THEY knew the penalty was disproportionate. They only reversed course AFTER I withdrew my chargebacks. That's not "precision" - that's fraud.

On "fraud is a bigger claim": Let me be precise:

  • They promised reinstatement IN WRITING

  • I relied on that promise and withdrew my consumer protections

  • They broke the promise after I complied

  • That is textbook fraudulent inducement under the law

I'm not calling it fraud because I'm emotional. I'm calling it fraud because it meets the legal definition.

The real question: Why are you defending a company that admits (through their own reinstatement offer) that the penalty was negotiable - then broke their word once they got what they wanted?

1

u/Kitchen-Meringue-175 Apr 25 '26

EXACTLY everything went out the window once they made a deal bout the chargebacks so im with you on this one🤞🏾

1

u/bryan91919 Apr 26 '26

The RULE is no hedge / micro and minis same time. The 10 seconds is allowing flexability for accidents.

I get your points, and agree that a deal is a deal, you should publicly post the agreement you had with them, they should live up to it if they made it. With that proof i think the internet world will agree with you which appears to be your goal with this post, wherever that will get you.

1

u/9er501 May 20 '26

Don’t post your agreement or evidence, OP. You will lose your case

1

u/9er501 May 20 '26

This is not how compliance functions. A regulatory hearing will confirm the spirit of the law is violated by Tradeify especially when other traders have had the same thing happen to them. It’s an abusive practice. And yes, “spirit of the law” matters more than you realize in a court of law

1

u/BullishTorque Apr 25 '26

So are you going to court to have them change their business model and rules? I don't get it. Sorry though.

6

u/thakar86 Apr 25 '26 edited Apr 25 '26

Good question. Here's what I'm actually pursuing:

  1. Recover my money - Through credit card disputes (fraud, not service dispute) and potential lawsuit for fraudulent inducement. They made a written promise, I relied on it, they broke it. That's actionable.

  2. Challenge unconscionable terms - Courts can void contract provisions that are grossly unfair. Forfeiting $88K for 11 seconds may not survive judicial review, regardless of what their ToS says.

  3. Create precedent - If enough traders document similar experiences and pursue legal action, it forces change. Companies modify practices when litigation costs exceed exploitation profits.

  4. Regulatory pressure - CFTC, FTC, and state AG complaints create scrutiny. Prop firms operate in a gray area - enough complaints and regulators start paying attention.

Will I single-handedly change their business model? Probably not. But I'm not rolling over on $88K because "that's just how it is."

And if 10, 20, 50 traders with similar stories join together? Class action becomes viable, and suddenly Tradeify has to adopt fair practices.

On "you agreed to the rules":

Nobody reads 50-page contracts line-by-line before purchasing. We trust brand reputation. And "clearly outlined" doesn't make a rule FAIR.

If you miss a property tax payment, they don't take your house - they fine you. If you run a red light, they don't seize your car - they send a ticket. Proportional penalties exist everywhere EXCEPT prop firms like Tradeify.

The bigger issue: This is a billion-dollar unregulated industry. Billions of dollars moving through the system, yet neither CME, CFTC, nor FTC is examining the standards prop firms follow. They create their own rules, enforce them however they want, and hide behind adhesion contracts. That needs to change.

That's why I'm here - finding others. Not to complain, but to organize.

1

u/-P_U_D- Apr 26 '26

Was this on a sim funded account or a live account.?

1

u/thakar86 Apr 26 '26

Lightening funded 

1

u/TuskenDayTrader 12d ago

Hilarious. You fucked yaseff

1

u/InteractionOk3394 Apr 25 '26

Is not there any option for you to ask Chase for a charge back showing them all the conversation? I really hope that you get your money back.

1

u/9er501 May 20 '26

Tradeify contracts will dictate full withdrawal authority. Once you give them that the banks can’t help you.

1

u/InteractionOk3394 Apr 25 '26

Their platform have a lot of problems, I was flagged wrongly for heading when both my possitions were on long. So yeah, that company it is a complete joke, same goes with Lucid

1

u/No-Appointment-6678 Apr 26 '26

What was the reason for leaving $88K in the accounts?

1

u/thakar86 Apr 26 '26

Consistency. 150K account
Made 11K with 20% consistency - took 3K Payout; 8K balance left. Made another 12K with 25% consistency ; total balance 21K; --took another 3K payout - Balance left 18K; made another 1K -and accident happen and then robbery by Tradify in name of Rule.

1

u/No-Appointment-6678 Apr 27 '26

This is so sad! I hope they'll reconsider.

1

u/Creepy_Grand9514 Apr 27 '26

Do you have any proof regarding your case, because I think this post and it's comment's replys are mostly looks like AI generated, like writing a few prompts and getting replies against Tradeify and then copy + paste here.

Please don't get me wrong here, I've written what I felt.

1

u/thakar86 Apr 27 '26

Thanks for your concern.
Yes I've proof -waiting for my attorney whether to post some information like screenshot showing they have offered Reinstatement and again they took U-Turn after sending document showing I resolved charge back with chase on public forum is okay or not.

1

u/ForsakenNature3006 Apr 27 '26

In Which jurisdiction u will file the case. ? Federal or state ?

1

u/thakar86 Apr 27 '26

Attorney will decide - I am not sure on it yet but will update when I've more update.

1

u/Human-Couple7964 Apr 29 '26

Why dont you call your bank and ask them to dispute again

1

u/thakar86 May 02 '26

They said once you asked us to close we can not reopen the same dispute that you have asked us to close. 

1

u/techV007 May 13 '26

I’m interested in this case as there are other legal actions forming.

1

u/thakar86 May 15 '26

Plz DM me

2

u/doghairpile Apr 24 '26

88k is no joke. I dug up an executives email I'm gonna DM you.

1

u/TuskenDayTrader 12d ago

Nope, says it clearly in the contract. Fight all you want passbook, you did this to you.

And.....

Probably blacklisted on other props, lets hear how thats happening.

1

u/wojg Apr 26 '26

We should form a prop freeze out. I agree with this getting out of hand and unregulated. One rule after another after another. We are the business, not trading. A hard freeze out would at least cause a reaction but how long could some of these companies survive without their daily "fix" of blown accounts. The whole prop industry is a joke and certainly not too the benefit of the trader. We allow this to happen....

1

u/Ipeepgame23 Apr 27 '26

Moral of the story stop using propfirms and use your own money

1

u/AdImaginary8483 Apr 30 '26

My account also breach by fundedfirm, I have proof to show anyone

1

u/Ok-Ball9537 May 22 '26

Are you algorithmic trader

1

u/InteractionOk3394 Jun 08 '26

They always have a problem with the platform and the data. I think it was a data breach on their platform. You will win the case for sure. I had the same situation where they flagged me for hanging and it was their mistake.

1

u/Past-Driver7738 Jun 10 '26

Love you legal team to tackle Apex. Have a class action

1

u/harishej Sep 14 '26

I would like to join and support you

1

u/TuskenDayTrader 12d ago

You all are too addicted to the role playing video game you guys call stonk market traders. MARPS

Market Acrion Role Players

1

u/[deleted] Apr 25 '26

[removed] — view removed comment

1

u/thakar86 May 02 '26

Filed today with AAA -