1. Executive Summary & Core Audit Findings
Through reverse-engineering client scripts, querying live backend API endpoints (api-gateway.hz.vestmarkets.com), and auditing documentation and on-chain metrics, our investigation identified key structural parameters:
- DEX Marketing vs Simulation Reality: While marketed as a zero-knowledge proof decentralized exchange (zkRisk), 99.8% of platform throughput consists of virtual trader challenge accounts branded as Vest Capital.
- The Liquidity-Volume Discrepancy: According to public DefiLlama records, on-chain TVL stands at only $161,178. Concurrently, API telemetry reveals 24-hour evaluation volume surpassing $287 million, confirming that trader orders execute in an internal closed simulation rather than an external pool.
- Wall Street & Jane Street Capital Backing: Distinct from retail prop firms, developer Vest Labs secured $10 million in venture funding across two rounds from Jane Street Capital, QCP Capital, Amber Group, Selini Capital, and Big Brain Holdings.
- Regulatory Exposure: Vest Exchange Inc. holds zero financial licenses. Operating under Panama jurisdiction, contracts provide no consumer recourse in domestic courts, and international traders bear full regulatory and capital recovery risks.
2. Corporate Architecture & Investor Base
The platform operates through two distinct legal and development layers:
- Operating Legal Entity: Vest Exchange Inc., incorporated in the Republic of Panama. All user agreements and dispute resolutions are bound to Panamanian arbitration.
- Engineering Entity: Vest Labs Inc., a financial software development firm founded in 2022 and based in Seattle, Washington, USA.
- Leadership: Founded by Justin Ma (CEO / X:
@perpv2), with co-founders Max T., Rikuya T., and Head of Operations Jhanly N. (X:@capital_jn). - Institutional Funding ($10 Million):
- Seed Round (January 2023 - $5M): Jane Street Capital, QCP Capital, Big Brain Holdings, Pear VC, AscendEX, and Robert Chen (OtterSec).
- Expansion Round (March 2025 - $5M): Amber Group, Jane Street Capital, Selini Capital, QCP Capital, Mozaik Capital, and DefiSquared.
3. Synthetic Perpetuals Architecture & zkRisk Engine
Operating at trade.vestmarkets.com, the system offers derivative trading across 88 synthetic markets:
- Market Universe: 74 US Equities (synthetic 24/7 contracts on AAPL, NVDA, TSLA, MSFT), 9 Forex pairs, and 5 Crypto assets (BTC, ETH, SOL, XRP, HYPE).
- zkRisk Pricing Engine: Utilizes an Entropic Value-at-Risk (EVaR) model instead of a central limit order book, dynamically adjusting funding rates based on open interest skew.
- Leverage Framework: Up to 100x on Forex, 50x on major crypto, 25x on equities, and 5x on altcoins. Standard taker fees are set at 0.01%.
4. Vest Capital Prop Model: 43 Live Plans
Verified via the live API (v3/capital/plans), Vest Capital offers 43 packages divided into two primary tiers:
Evaluation (1-Step Challenge)
- Profit Target: 10% or 20%
- Time Limit: None (No minimum trading days)
- Max Drawdown: 6% Static Drawdown
- Daily Loss Limit: 3%, 4%, or Unlimited
- Profit Split: 80% to 90%
- Example: $5,000 account priced at $72 - $90
Instant Funded
- No evaluation phase; immediate payout eligibility
- Zero profit targets and zero daily loss limits
- Max Drawdown: 4% Static Drawdown
- Profit Split: 95%
- Pricing: Account fee equals the loss buffer
- Example: $25,000 account priced at $1,000
According to system limits (v3/capital/limits), each user is capped at a maximum of 10 concurrent funded accounts and 100 evaluation accounts.
5. Contract Terms, Risk Parameters & Hidden Restrictions
Critical operational clauses within customer contracts and API configurations:
- Simulated Trading Acknowledgment (TOS Section 6.1): Terms explicitly state: "The Program is a simulated trading and signal-generation exercise. Participants do not manage live capital. Payouts constitute program incentives, not real market trading profits. The Company retains sole discretion whether to route signals to external liquidity."
- Conflict of Interest Waiver (TOS Section 6.5): Customers expressly waive claims regarding conflicts of interest between the platform and traders.
-
5x Hidden Leverage Cap on Funded Accounts: While marketing promotes 50x-100x leverage, active funded Vest Capital accounts are strictly limited to a 5x maximum leverage ceiling (
max_leverage: 5.0000). - Mark Price Liquidation Traps: Liquidations trigger based on oracle mark price feeds rather than the traded chart price, creating unexpected liquidations during volatility spikes.
- Leverage Reduction Windows (LRW): During CME maintenance (16:30 - 16:45 ET), equity index leverage is forcefully scaled down to 5x, and oversized positions are liquidated automatically at market price.
- VPN Prohibition (TOS Section 5.15): Accessing accounts through VPNs or anonymizing proxies is grounds for immediate account closure and profit forfeiture.
- Withdrawal Cap: External USDC disbursements from the Primary Account are capped at 50,000 USDC per rolling 24-hour window.
6. PropŞikayet Research Verdict
Verdict: Vest Markets and Vest Capital combine institutional high-frequency backing (Jane Street) with a closed-loop virtual prop firm evaluation business. While instant funding and 95% profit splits offer appealing parameters, traders must understand that liquidity is internal, funded leverage is capped at a conservative 5x, and dispute resolution is governed by offshore Panamanian arbitration. The platform represents a sophisticated synthetic prop venue that demands strict awareness of mark-price behavior and contract fine print.