{"term":{"slug":"scaling-plan","term":"Scaling Plan","definition":"A program offered by prop firms that increases your account size and/or profit split as you demonstrate consistent profitability over time. Scaling rewards long-term funded traders with larger capital allocations.","extendedExplanation":"Scaling plans are a key retention tool for prop firms. They reward traders who consistently generate profits without breaching rules. The most common scaling mechanism increases account size by 25% after achieving a certain profit milestone.\n\nThe5%ers has one of the most aggressive scaling programs, allowing traders to scale from $20K up to $4M. Their profit split also increases from 50% to 100% as you scale. FTMO scales from $100K to $400K and increases the profit split from 80% to 90%.\n\nScaling typically requires: (1) a minimum number of profitable payout periods, (2) meeting a profit threshold, and (3) no rule violations during the scaling period. Some firms automatically scale you after criteria are met, while others require you to request it.","exampleWithNumbers":"The5%ers scaling path: start at $20K with 50% split. After 10% profit ($2,000), scale to $40K with 60% split. Continue scaling every 10% milestone: $80K (70%), $160K (80%), $320K (90%), up to $4M (100%). Starting from $20K, it takes 8 scaling milestones to reach $4M. At $4M with 100% split, a 2% monthly return yields $80,000/month -- all yours.","category":"evaluation","relatedTerms":["funded-account","payout-split","compound-growth","consistency-rule"]},"_links":{"self":"https://runvigil.app/api/glossary/scaling-plan","page":"https://runvigil.app/learn/scaling-plan","allTerms":"https://runvigil.app/api/glossary","learn":"https://runvigil.app/learn"}}