A profit split is the division of profits on a funded account between you and the firm. An 80% split means you keep $800 of every $1,000 in profit and the firm keeps $200. The split applies to funded profits only; challenge profits are not paid out, they only count toward passing.
Splits vary by firm and by plan, and many firms raise the split as you progress. The crypto firms we track start every funded account at 80%, and eight of the ten offer a path above 80% through a checkout upgrade or a scaling milestone. A higher split is worth less than it looks if the plan also has a high minimum payout or a long payout wait.
This number matters because it is the only part of the profit you actually receive. A trader who makes $5,000 on a 70% split takes home $3,500, while the same $5,000 on a 90% split pays $4,500. That $1,000 gap comes from one contract term, not from trading skill.
The common trap is comparing splits without comparing payout timing and minimums. A 90% split with a monthly payout and a high minimum can pay later than an 80% split that pays on demand. Check the split, the schedule, and the minimum together. Prop trading can cost you every fee you pay.