Executive Summary & Core Facts
| Audit Vector | Verified Status & Technical Findings | Tier |
|---|---|---|
| Platform Type | Web3 & Telegram Mini App crypto prop trading firm (Launched November 2025) | [E1] |
| Operating Entity | Innovix LTD (Republic of Seychelles Offshore Registration) | [E2] |
| Physical Headquarters | Al Habtoor City, Dubai, UAE (Registered Phone: +9712025550156, Email: akafakir@gmail.com) |
[E1] |
| Dispute Resolution | Arbitration in Victoria, Republic of Seychelles (Seychelles Jurisdiction) | [E1] |
| Founder & Tech Lead | Denis Vasin (Storm Trade Co-Founder and Upscale Lead Architect) | [E1] |
| Parent & Sister Ecosystem | Storm Trade (Largest decentralized perpetuals exchange on TON blockchain) | [E1] |
| Internal Matching Engine | TETRA Engine (https://api.tetra.stormtrade.dev/lite/api/v0/address) |
[E1] |
| Artificial Intelligence Integration | Model Context Protocol (MCP) server active (https://mcp.upscale.trade) |
[E1] |
| Infrastructure Integration | Production client codes bind directly to storm.tg management and telemetry servers |
[E1] |
| Sovereign Regulatory Warning | Bank of Russia (CBR) Warning List (Record No: 42739, Feb 17, 2026 - with Alex's Crypto) | [E1] |
| Mirror & Censorship Bypass | Active mirrors include mirror.upscale.trade (301 redirect) and ru.upscale.trade |
[E1] |
| Licensing Status | Unlicensed. Zero regulatory registrations or consumer protections across major financial centers | [E2] |
| Restricted Jurisdictions | US citizens and OFAC sanctioned territories | [E1] |
| VPN Usage Policy | Strictly Prohibited. Terms of Use Section 1 mandates immediate account termination upon VPN detection | [E1] |
| KYC Policy Contradiction | Marketed as "Zero KYC", while Section 6 explicitly mandates passport and live selfie before withdrawal | [E1] |
| Challenge Programs | Basic (2-Step), Accelerated (1-Step), and Turbo (Instant Funding) | [E1] |
| Critical Trading Restrictions | 14-day payout cycle, 5 profitable days rule, 30% consistency, 60s rule, baseline reduction | [E1] |
| Price Oracle Network | Stork Oracle and Pyth Network for crypto; proprietary Upscale Price Index (UPI) for synthetics | [E1] |
| Deposit & Payout Rails | Intake via Cards, Telegram Stars, Calypso Pay, Base Pay. Payouts via USDT on TON, Base, and BSC | [E1] |
1. Identity, Corporate Structure & Dubai Operational Center
1.1 Business Model & Operations [E1]
Upscale (upscale.trade) operates as a Web3 and Telegram Mini App crypto prop firm, offering simulated balances ranging from $5,000 to $200,000. Traders pay non-refundable evaluation entry fees to meet virtual profit targets, with promises of 80% to 90% profit shares upon evaluation completion. The front-end leverages TradingView libraries rather than traditional MetaTrader terminals.
1.2 Leadership & Direct Ties to Storm Trade [E1]
The platform was built and engineered by Denis Vasin, co-founder of Storm Trade, the largest decentralized perpetuals exchange on the TON blockchain. Audit inspection confirmed that the primary official support bot in the Upscale client directs users straight to t.me/storm_support_bot, establishing that Upscale is an operational spin-off of Storm Trade rather than an independent market venture.
1.3 Corporate Structure & Operational Center: Seychelles Registration & Dubai Hub [E1]
While formally fronted by Seychelles-registered entity Innovix LTD, network forensic audits and domain infrastructure confirm the actual operational hub:
- WHOIS records for
upscale.traderegister the country code as AE (United Arab Emirates) [E1]. - Sister domain
storm.tg, sharing the identical Cloudflare Name Server cluster (sean.ns.cloudflare.comandnoor.ns.cloudflare.com), confirms registered ownership:
• Physical Operations Hub: Al Habtoor City, Dubai, United Arab Emirates [E1].
• Commercial Line:+9712025550156(Dubai commercial telecom) [E1].
• Registrant Contact: OLMEC / Omar (akafakir@gmail.com) [E1]. - Legal Assessment: The Seychelles incorporation serves as an offshore liability framework, while technical development, treasury operations, and core leadership operate physically from Dubai.
1.4 Infrastructure & Execution Engine: TETRA & Storm Trade Integration [E1]
Analysis of client configuration files and production infrastructure confirms that the platform is not an independent exchange, but is directly integrated into the Storm Trade ecosystem:
- Internal Matching Engine (TETRA): Simulated trades are routed directly into Storm Trade's internal matching engine rather than an independent liquidity pool:
https://api.tetra.stormtrade.dev/lite/api/v0/address[E1]. - Shared Administrative & Server Infrastructure: Administrative backoffices (
backoffice.storm.tg), documentation repositories (docs.storm.tg), and core server endpoints connect directly to Storm Trade networks [E1]. - Operational Implication: Upscale operates as an integrated prop trading arm designed to expand perpetual futures trading volume and user acquisition for the Storm Trade DEX ecosystem.
1.5 AI & Model Context Protocol (MCP) Agent Capabilities [E1]
The platform maintains an active Model Context Protocol (MCP) bridge (https://mcp.upscale.trade) designed for programmatic and AI agent trading:
- The server exposes
trade:read(market data and portfolio observation) andtrade:write(order execution and closure) scopes [E1]. - This infrastructure allows external AI agents (Claude, Cursor, custom automated systems) to interface directly with trading accounts via API.
- Trader Advisory: Programmatic algorithms remain strictly subject to the Section 4 minimum 60-second trade duration rule and the 30% single-day profit consistency ceiling; non-compliance triggers automatic profit forfeiture.
1.6 Corporate Entity, Dispute Jurisdiction & Arbitration Limits [E1] [E2]
The platform is formally owned by Seychelles-registered Innovix LTD [E2]. Section 14 of the Terms of Use mandates Seychelles Law as the governing jurisdiction, binding all legal disputes exclusively to Arbitration in Victoria, Seychelles [E1].
Consequently, retail traders have no practical consumer protection in local domestic courts in the event of account termination or payout denials, with formal legal recourse restricted to high-cost offshore arbitration.
2. Regulatory Exposure, International Sanctions & CBR Warning List
2.1 Central Bank of Russia (CBR) Blacklist & Alex's Crypto Syndicate [E1]
Official Warning List Decision: On February 17, 2026 (updated March 3, 2026), the Central Bank of the Russian Federation (Bank of Russia) placed Upscale on its official public blacklist.
- Record Number: 42739.
- Official Violation: "Signs of an illegal professional securities market participant."
- Identified Endpoints:
upscale.trade,@UpscaleTradeBot, and associated distribution channelt.me/Alexs_Crypto. - Syndicate Analysis: Alex's Crypto functions as the primary promotional vehicle marketing high-risk yield and airdrop schemes across CIS markets, acting as an acquisition funnel for Upscale.
2.2 Mirror Networks & Censorship Evasion (mirror.upscale.trade & ru.upscale.trade) [E1]
To circumvent sovereign firewall blocks, Upscale maintains active redundancy domains:
mirror.upscale.tradeexecutes a 301 permanent redirect directly tohttps://app.upscale.trade/.ru.upscale.tradeprovides an unblocked mirror portal specifically targeted at regional users.
2.3 Regulatory Compliance & Legal Status [E2]
- Licensing: Neither Innovix LTD nor Upscale Trade holds financial licenses or regulatory registrations in any major jurisdiction.
- Unregistered Derivatives: Offering leveraged synthetic instruments to retail traders without a localized license violates financial securities laws across major markets.
- Taxation: USDT payouts received via TON, Base, or BSC blockchains constitute taxable trading income under most domestic tax codes, carrying independent reporting duties for traders.
2.4 Territorial Prohibitions & VPN Ban (Section 1) [E1]
Section 1 of the Terms of Use bars US citizens and OFAC-sanctioned jurisdictions. Furthermore, the contract strictly prohibits VPN or proxy usage. Accounts detected accessing the platform through virtual private networks are subject to immediate unilateral closure and forfeiture of funds.
2.5 The Zero-KYC Contradiction (Section 6) [E1]
Contractual Terms (Section 6): Despite marketing materials touting "Zero KYC", Section 6 of the legally binding Terms of Use mandates full identity verification prior to any payout:
"Prior to executing any payout request, the user must successfully complete standardized KYC procedures via an authorized third-party provider. This process mandates submission of a photographic passport identity page and a live selfie. Withdrawals remain locked until verification approval."
"Prior to executing any payout request, the user must successfully complete standardized KYC procedures via an authorized third-party provider. This process mandates submission of a photographic passport identity page and a live selfie. Withdrawals remain locked until verification approval."
3. Evaluation Models & Fee Matrix [E1]
3.1 Model Specifications
| Parameter | Basic Step 1 | Basic Step 2 | Accelerated | Turbo (Instant Funding) |
|---|---|---|---|---|
| Profit Target | 5% | 8% | 10% | None |
| Max Daily Drawdown | 5% | 5% | 3% | Not Applicable |
| Max Total Drawdown | 10% | 10% ($200K: 8%) | 6% | 6% Trailing from High-Water Mark |
| Minimum Profitable Days | 3 days | 5 days | 3 days | 5 days for withdrawal |
Profitable Day Criterion: Daily net balance growth between UTC start and end (inclusive of floating PnL) must equal at least 0.50% of the initial capital ($50 on $10K, $500 on $100K).
Allocation Limits: Aggregate funding ceiling is $400,000 for Basic and Accelerated tiers. Turbo Instant Funding maintains an independent $100,000 ceiling.
3.2 Official Challenge Fee Matrix
| Account Size | Basic (Crypto) | Basic (RWA) | Basic (ALL) | Acc. (Crypto) | Acc. (RWA) | Acc. (ALL) | Turbo (Crypto) | Turbo (RWA) | Turbo (ALL) |
|---|---|---|---|---|---|---|---|---|---|
| $5,000 | $69 | $59 | $81 | $79 | $69 | $99 | $229 | $199 | $269 |
| $10,000 | $119 | $99 | $144 | $129 | $109 | $189 | $449 | $399 | $549 |
| $25,000 | $249 | $219 | $315 | $259 | $249 | $399 | $899 | $799 | $1,099 |
| $50,000 | $399 | $349 | $540 | $459 | $399 | $649 | $1,499 | $1,349 | $1,799 |
| $100,000 | $799 | $699 | $899 | $899 | $799 | $999 | $2,999 | $2,699 | $3,599 |
| $200,000 | $1,399 | $1,299 | $1,499 | $1,499 | $1,399 | $1,599 | N/A | N/A | N/A |
*Categories: Crypto (futures crypto pairs only), RWA (Forex, Gold, Commodities), ALL (Comprehensive basket of 120+ asset tickers).
4. Contractual Clauses, Payout Barriers & Algorithmic Limits [E1]
- 1. Mandatory 14-Day Waiting Period: A minimum of 14 calendar days must elapse between account funding and the initial payout, as well as between subsequent payout submissions.
- 2. The 5 Profitable Days Threshold: Even after 14 calendar days, withdrawals remain locked unless the account logged at least 5 separate trading days generating net profits of >= 0.50% of the initial capital balance.
- 3. Tiered Payout Caps: Single-withdrawal requests are hard-capped by account tier: 50% for $5K accounts, 40% for $10K and $25K, 25% for $50K, 20% for $100K, and 15% for $200K.
-
4. Algorithmic Baseline Compression (
payoutBaselineBalance): Client-side logic reveals that post-withdrawal, thepayoutBaselineBalancelogic resets the maximum loss floor to the remaining balance, sharply reducing available risk room. - 5. The 30% Profit Consistency Rule (Turbo & API): No single trading day may account for more than 30% of total cumulative net profit. A trader earning $1,500 on one day must continue trading to generate at least $5,000 in aggregate profits before requesting a payout.
- 6. 60-Second Profit Forfeiture: Profitable trades closed within less than 60 seconds from opening or scale-in are stripped of all profits, while losing trades held under 60 seconds are deducted in full. This restriction applies equally to API bots and manual orders.
- 7. Monetized Protection Add-Ons: Daily drawdown protection is offered as an upsell at 15% surcharge. It is single-use only and does not prevent total account breach. Account resets carry additional mandatory fees.
5. Fee Architecture, Gateway Markups & Oracle Network [E1]
5.1 Trading Commissions & The 7.5x Surcharge
| Asset Group | Basic & Accelerated | Turbo (Instant Funding) | Variance & Operational Impact |
|---|---|---|---|
| Crypto Assets | 0.008% | 0.060% | 7.5x Commission Surcharge |
| Forex, XAU / XAG | 0.0035% | 0.0070% | 2.0x Commission |
| Indices, Copper | 0.0035% | 0.0100% | Approx. 2.85x Commission |
| 24/7 Equities, WTI, Natural Gas | 0.0030% | 0.0200% | Approx. 6.67x Commission |
5.2 Hidden Gateway Surcharges (FPay 8%, B2BinPay 5%) [E1]
Production environment variables in env-config.js expose undisclosed payment fee multipliers:
VITE_FPAY_COMMISSION: "1.08": Fiat Pay / credit card deposits incur an 8% hidden processing surcharge.VITE_B2M_COMMISSION: "1.05": B2BinPay crypto transactions apply a 5% platform deduction.VITE_FSL_APP_KEY: "udhk6Tff32s": Embedded identity gate developed by Find Satoshi Lab (STEPN creators).- New payout endpoint:
POST /withdrawals/base(USDT disbursements on Base network).
5.3 Overnight Financing, Spreads & Oracle Network
- Overnight Financing: Positions in 24/7 equities, indices, and energy contracts incur a 0.025% daily carrying fee, tripled on Fridays to 0.075% to cover the weekend.
- Spread Mechanics: BTC and ETH orders opened more than one hour apart carry zero spread; shorter intervals incur market spreads. Exit spreads are modeled at zero.
- Oracle Feeds: Crypto pairs reference Stork Oracle and Pyth Network. Equities and commodities reference the internal Upscale Price Index (UPI), generating synthetic quotes during off-market weekend hours.
7. Four Major Platforms Comparison Matrix
| Audit Dimension | UPSCALE (@UpscaleTrade) |
FERM (@tryferm) |
STRAT (@TradeOnStrat) |
VEST MARKETS (@VestExchange) |
|---|---|---|---|---|
| Platform Architecture | Web3 & Telegram Prop Desk | Simulated Prop Trading Desk | Crypto & Synthetic Perp DEX | Decentralized Perp DEX |
| Legal Jurisdiction | Seychelles (HQ: Dubai, UAE) [E1] | Delaware, USA [E2] | Independent Protocol | Delaware / Panama [E2] |
| Regulatory Status | CBR Blacklisted (Russia) [E1] | Unlicensed Institution | Unlicensed Institution | Unlicensed Institution |
| KYC Policy | Marketed "Zero", Mandatory on Payout [E1] | None on Buy, Required on Payout [E2] | Wallet-Based (No KYC) | Wallet-Based (No KYC) |
| Instant Funding | Available (Turbo Model) [E1] | None (Evaluation Only) | None (Proprietary Capital) | None (Proprietary Capital) |
| Prominent Restriction | 14-Day Cycle, 30% Rule, 60s Rule [E1] | 1.20% Max Risk & Forfeiture [E2] | High Funding Rates | Liquidation & Slippage Risk |
| Price Oracle Source | Stork Oracle, Pyth, UPI [E1] | Hyperliquid Synthetic Stream | Pyth Network & Stork | Pyth Network Oracle |
| Profit Split | 80% Standard, 90% Scaled [E1] | 80% Standard, 90% Scaled [E2] | 100% Trader Owned | 100% Trader Owned |
Bungee Funded Perps Comparison: While Bungee adopts an isolated margin perpetual DEX router structure, Upscale relies on server-executed synthetic evaluations. In both instances, counterparty and capital recovery risks rest entirely with the retail trader.
8. Strategic Verdict & Trader Recommendations
- 1. Assess Counterparty & Jurisdictional Realities: The corporate pairing of a Seychelles offshore incorporation, Dubai operations hub, and formal Russian Central Bank warning list placement elevates counterparty default risk. In the event of payment refusals, international retail traders have no legal recourse.
- 2. Disregard Promotional "Zero KYC" Narratives: Despite initial non-custodial wallet onboarding, identity verification via passport photographic data and live selfie verification is mandatory upon withdrawal submission.
- 3. Turbo Accounts Impose Heavy Commission Burdens: With a 6% trailing drawdown floor, 7.5x higher crypto commissions (0.06%), and a 30% single-day profit cap, Turbo instant funding accounts carry very high forfeiture rates.
- 4. Algorithmic Traders Must Respect the 60-Second Rule: All automated trading strategies closing positions in under 60 seconds have their profits stripped. High-frequency algorithms cannot operate profitably under these terms.
- 5. Final Recommendation: Upscale is not a regulated financial entity. Capital committed should be limited strictly to disposable risk levels, with routine withdrawals executed immediately upon clearing the 14-day cycle.
9. Evidentiary Sources & Documentation
- Central Bank of the Russian Federation (Bank of Russia) Official Warning List, Record No: 42739 (
cbr.ru) - WHOIS Forensic Registries:
upscale.trade(AE registration) andstorm.tg(Al Habtoor City, Dubai registration) - Model Context Protocol Discovery:
https://mcp.upscale.trade/.well-known/oauth-protected-resource - Upscale Terms of Use:
app.upscale.trade/terms-of-use-upscale.pdf(May 15, 2026, 10 pages) - Client Configurations:
app.upscale.trade/env-config.jsand compiled packageindex-CzXtSDCh.js - TETRA Matching Engine:
api.tetra.stormtrade.dev/lite/api/v0/address - TON On-Chain Contract:
EQBQwk4uEjMlB54tkmVIuDQZSZivN3AT8ozcoa2ELqf2Im6U(toncenter API v2) - Denis Vasin Profile & Public Disclosures: Cointelegraph, thetrends.tech, cryptopotato.com
- Innovix LTD Registration: thetrustedprop.com "Upscale Review 2026"
- Launch Announcement: GlobeNewswire, November 3, 2025
- Third-Party Evaluators: propfirmmap.com, propfirmmatch.com, propfirmpal.com, trustpilot.com
6. Social Media, X OSINT & Reputation Audit
6.1 Influencer Syndicates & Misleading Marketing [E1]
Analysis of marketing broadcasts on X confirms deceptive promotional narratives. Commissioned affiliates (
@_SHUGABA, etc.) advertise claims of "No consistency rule, No withdrawal limits, No KYC", directly contradicting the enforceable Terms of Use which enforce a 30% consistency rule, withdrawal caps, and mandatory passport identity verification.6.2 Payout Skepticism & Unsubstantiated Automated Trading [E1]
Following algorithmic trading announcements, independent researchers (
@02growthlab) publicly requested verified on-chain proof of any API-executed payout. The company has failed to supply verifiable blockchain transaction hashes. In practice, the 60-second restriction renders automated high-frequency trading unprofitable.6.3 Independent Ratings & Confiscation Clauses [E2] [E3]
PropFirmMap assigns Upscale a security rating of D; the firm is unlisted on PropFirmPal and marked as unverified on PropFirmMatch [E2]. While unverified forum complaints allege profit confiscations [E3], the binding contractual text explicitly empowers the firm to retroactively cancel trades deemed executed outside off-market price corridors [E1].