STRAT (strat.trade) is a hybrid decentralized finance protocol deployed on the Initia blockchain ecosystem, combining a fully on-chain proprietary trading evaluation framework with a synthetic perpetual exchange (Perp DEX) [E1].

Unlike conventional prop trading platforms (such as FTMO or FundedNext), STRAT does not manage assessments, risk controls, or profit allocations on centralized cloud databases or simulated MT4/MT5 demo brokers. Instead, the entire lifecycle is enforced directly on-chain through Move smart contracts (prop_trading, prop_vault, virtual_asset) [E1].

Core Platform Architecture [E1]

• Dual-Track Structure: The protocol simultaneously hosts a standard decentralized perpetual exchange (Standard Perps) where users deposit their own iUSD margin, and an on-chain prop trading programme where successful candidates manage virtual protocol capital.
• Synthetic Cross-Market Exposure: Supports leveraged exposure (up to 100x) across digital assets (BTC, ETH, INIT) as well as synthetic US equities (AAPL, TSLA, NVDA) and precious metals (XAU, XAG).
• Pool-Based Counterparty Liquidity: Orders execute against liquidity provided by community depositors in the vault and prop_vault contracts, with settlement prices streamed via RedStone and Stork oracle networks.
• Instant On-Chain Payout Settlement: Once performance milestones are achieved on funded accounts, profits are claimed via the request_payout function, crediting the trader's Web3 wallet within seconds with zero manual compliance delays.

A. Corporate Entity & Jurisdiction [E1]

Extracted directly from client-side source code, STRAT's official Terms of Service establish:

• Legal Entity: Strat Technologies Incorporated [E1]
• Country of Incorporation: Republic of Panama [E1]
• Governing Law & Dispute Resolution: Laws of Panama. Mandatory binding individual arbitration applies; class actions and group litigation rights are explicitly waived [E1].
• Legal Inquiries: notices@strat.trade [E1]

B. Türkiye Explicitly Designated as a "Restricted Jurisdiction" [E1]

Section 1.2 of the STRAT Terms of Service enumerates prohibited geographic territories. In this clause, TÜRKIYE IS EXPLICITLY BANNED IN CAPITAL LETTERS:

"Restricted Jurisdictions currently include: the United States of America... the European Union and the European Economic Area (EEA)... the United Kingdom, the People's Republic of China, Singapore, Myanmar, Cuba, Iran, North Korea, Sudan, Syria... Australia, TURKEY, and any other country or region subject to comprehensive sanctions..."

Furthermore, under Section 4.1 (Prohibited Activities):

• Utilizing VPNs, proxies, or IP obfuscation tools to circumvent geographic geo-blocks is strictly prohibited [E1].
• The protocol reserves the right to immediately blacklist non-compliant wallet addresses and terminate funded allocations with complete forfeiture of accumulated gains [E1].

C. Capital Markets Law & Counterparty Risks

1. Regulatory Prohibition on Unlicensed Leveraged Derivatives:
   • Cross-border entities offering leveraged synthetic derivatives or CFD contracts to Turkish residents without domestic licensing commit unauthorized capital market operations (Law No. 6362 Art. 99/A) [E2].
   • Turkey's Capital Markets Board (SPK) routinely issues administrative DNS blocking orders against foreign portals offering unauthorized leveraged financial trading [E2].
2. Trader Counterparty Exposure:
   • STRAT holds no regulatory license from the SPK or international tier-1 supervisors [E2].
   • Because Turkish residents are classified as restricted persons under STRAT contracts, an account audit or withdrawal check that links an address to Turkish identification or IP traces leaves the user with zero legal recourse. The protocol can legally terminate the account and retain all trading profits under breach-of-contract clauses [E1].

Live queries to the STRAT node (rest-strat-1.anvil.asia-northeast.initia.xyz) via prop_trading::get_configs reveal the precise mathematical parameters hardcoded into the Move contracts [E1]:

Critical Contract Rules and Code Clauses [E1]

• 3. 14-Day Evaluation Deadline: While mainstream firms have eliminated assessment time limits, STRAT enforces a hardcoded 1,209,600-second (14-day) countdown. Failing to achieve the 10% gain within 14 days terminates the evaluation [E1].
• 4. 7-Day Inactivity Breaches: In both evaluation and funded phases, failing to execute an order for 7 consecutive calendar days automatically liquidates the account [E1].
• 5. Dynamic Spread Multipliers: Under max_hill_scale: 2.5 and imbalance_sensitivity: 1.2, liquidity pool imbalances widen bid-ask spreads by up to 2.5x against open orders [E1].

                       ┌────────────────────────────────────────┐
                       │           STRAT Frontend Interface     │
                       │           (React / TanStack / Jotai)   │
                       └───────────────────┬────────────────────┘
                                           │
                                           ▼
                       ┌────────────────────────────────────────┐
                       │          Initia Minitia Rollup         │
                       │          Chain ID: strat-1             │
                       └───────────────────┬────────────────────┘
                                           │
         ┌─────────────────────────────────┴─────────────────────────────────┐
         ▼                                                                   ▼
┌─────────────────────────────────┐                         ┌─────────────────────────────────┐
│     Standard Derivatives DEX    │                         │      On-Chain Prop Trading      │
│   (Move: position, order, pair) │                         │ (Move: prop_trading, prop_vault)│
└────────────────┬────────────────┘                         └────────────────┬────────────────┘
                 │                                                           │
                 ├─────────────────────────┬─────────────────────────────────┤
                 ▼                         ▼                                 ▼
   ┌──────────────────────────┐ ┌──────────────────────┐        ┌──────────────────────────┐
   │      Liquidity Vault     │ │    Oracle Feeds      │        │    Virtual Allocation    │
   │    Move: vault (iUSD)    │ │   (RedStone + Stork) │        │   Move: virtual_asset    │
   └──────────────────────────┘ └──────────────────────┘        └──────────────────────────┘
              

• Layer 2 Architecture: STRAT is not a standalone L1; it operates as an Initia Minitia Rollup built on Cosmos SDK and MoveVM [E1].
• Collateral Base: Settles entirely in iUSD (0x13bab7c0ed9dd9f4609f7dee7a5f69c99e14eca507f77e088d9b429f77e47b81), a synthetic pegged asset [E1].
• Virtual Allocation Engine (virtual_asset): Prop account balances are tracked through simulated on-chain tokens (0x91813d4d0ac985564dabf90345417acc4fc452aec23f9dd3aebf140f7b594674) rather than transferred cash. Genuine trading profits are paid directly from the primary prop_vault in actual iUSD [E1].
• 80 Active Market Pairs & DefiLlama Metrics: The pair::PairStore contract defines 80 trading pairs. DefiLlama records total protocol TVL under Strat Perps at approximately $1.2 Million [E2].

Founding & Core Team [E1]

• Wayne Nelms (@wayne_nelmz): MIT Mathematics and Computer Science alumnus. Previously an equity options trader at quantitative derivatives giant Susquehanna International Group (SIG), and co-founder of AI financial platform Ornn Exchange [E1].
• YK (@0xwhykay): Head of Product. Formerly led Business Development at Aptos perp platform Merkle Trade and served as an investor at Asian Web3 venture fund Hashed, specializing in MoveVM derivatives architecture [E1].

Venture Capital Tracking & Ecosystem Support [E2]

• The project was indexed by Frontrun VC (frontrun.vc) on March 17, 2026, confirming that over 12 tier-1 institutional crypto venture funds actively track the protocol [E2].
• Receives official technical backing and integration support directly from the Initia foundation and core rollup engineers [E1].

Points & Competitive Tournaments [E1]

• Maintains an active Strat Perps Points incentive campaign refreshed weekly on Tuesdays [E1].
• Hosts seasonal trading competitions (competition/seasons) with partitioned leaderboards differentiating standard perp users from funded prop accounts (isProp=true) [E1].

• 1. Contractual Invalidity & Capital Forfeiture: Because STRAT formally blacklists Türkiye in Section 1.2, trading via VPN represents an open breach of contract. The protocol retains absolute discretion to freeze wallets and confiscate profits without legal recourse.
• 2. Unregulated Leveraged Exposure: Conducting leveraged derivative speculation through offshore unlicensed protocols lacks any investor compensation protection or regulatory shelter.
• 3. Technically Innovative, Operatively Severe: While STRAT presents pioneering on-chain Move architecture and instant wallet settlement, its operational parameters—14-day evaluation pressure, 7-day dormancy termination, single-use account burning (ClosedLifeCard), and 90% overnight leverage cuts—impose extraordinarily high hurdles on participants.

• Initia Minitia Rollup Live RPC Node: rest-strat-1.anvil.asia-northeast.initia.xyz (Module: prop_trading)
• Move Smart Contract Package: 0xd49da8a8c29c1294b98fcb119ae3bdc1cf697ac2b42d63caed608b07941ce111 (Chain ID: strat-1)
• STRAT Official Terms of Service (Sections 1.2 & 4.1): strat.trade/terms
• DefiLlama Protocol Analytics: defillama.com/protocol/strat-perps (~$1.2M TVL)
• Frontrun VC Institutional Tracking Database: frontrun.vc (Entry Date: March 17, 2026)
• Wayne Nelms & YK Executive Background: MIT, Susquehanna International Group (SIG), Ornn Exchange, Merkle Trade, Hashed
• Initia Ecosystem Architecture & Cosmos SDK / MoveVM Rollup Documentation
• Turkish Capital Markets Board (SPK) Communiqué on Leveraged Transactions (III-35/B.2) and Law No. 7518