Quantx Manifesto

Dear Expert Traders and Market Innovators,

Welcome to Quantx – the technical and strategic evolution of Aeon Funded. We don't just promise results: we deliver them through a mathematically robust, empirically validated model. In an industry plagued by structural instability and chronic failures, Quantx stands as the sustainable solution the sector desperately needs. Our approach is no speculative hypothesis; it's the outcome of years of data analysis, rigorous backtesting, and iterative optimizations. It works because it's engineered to align the interests of all stakeholders, transforming prop trading into a profitable, resilient ecosystem where payouts aren't a mirage but a daily reality.

Let's be upfront: honesty is the cornerstone of true sustainability. Not every trader's order hits the real market – and we're transparent about that. In classic prop firms, this lack of candor leads to opaque operations and eventual collapse. At Quantx, we embrace this reality as a strength, routing only what's necessary externally while handling the rest internally for efficiency and risk control. This transparency builds trust and ensures long-term viability, unlike the deceptive models that promise "real market access" for all but deliver excuses when payouts falter.

The Prop Firm Industry: A Flawed, Unsustainable Model Doomed to Collapse.

The traditional prop firm industry is a house of cards, built on shaky, illusory foundations. These platforms rely on a predatory "fee-driven" model, luring traders with low-cost challenges only to abandon them when it's time to pay out. Let's be honest: user fees are part of the business, but firms that sustain themselves solely on them are destined for failure. They can't survive long-term, and the evidence is clear:

• Total Reliance on Fees and Unmanaged Risk: Without advanced hedging mechanisms or internal matching, they accumulate massive losses. When markets turn, drawdowns explode, and classic prop firms simply can't pay traders – as evidenced by countless recent scandals where promised payouts evaporate, leaving traders with debts and frustration.
• Lack of Quantitative Depth: They depend on outdated strategies, primitive algorithms, or chaotic manual trading. They fail to anticipate slippage, optimize order flow, and boast failure rates exceeding 90%. These firms are little more than rigged lotteries, where the rare winners merely mask systemic disaster.
• Toxic Asymmetry in Interests: They hoard excessive profits, enforce draconian rules, and erect artificial barriers to avoid payments. The outcome? An ecosystem that crumbles under aggregated losses, with firms vanishing overnight, traders betrayed, and an industry rife with negative reviews and lawsuits. How many "leading" prop firms have we seen disappear, unable to honor obligations because their model is inherently unsustainable?

We've confronted these challenges head-on at Aeon Funded, learning from past lessons and others' failures. Through in-depth analysis of thousands of historical trades, we've pinpointed the breaking points and rebuilt the model from the ground up. Quantx isn't a mere rebrand: it's an aggressive reinvention grounded in solid quantitative principles, directly attacking the flaws of classic prop firms and ensuring sustainability for everyone.

The Quantx Model: Technically Profound and Sustainable – Where Classic Props Fail, We Excel.

Quantx dismantles the industry's defects with an integrated architecture of advanced systems, developed in collaboration with a leading quantitative fund. This partnership has enabled an ecosystem where quantum-inspired technology drives every decision, fostering collective profitability beyond mere fee dependency. We've invested heavily to engineer multiple specialized order books, each tailored to handle distinct aspects of trade execution, risk management, and liquidity provision. These aren't generic containers; they're dynamic, multi-layered systems that allocate traders based on strategy profiles, risk tolerances, and performance metrics.

At the heart of this infrastructure is our proprietary dealing desk – a centralized, AI-orchestrated command center that oversees all order routing, matching, and hedging in real-time. Powered by low-latency execution engines and integrated with our order books, the dealing desk uses advanced order management systems (OMS) with FIX protocol emulation for seamless internal processing. It employs smart order routers (SOR) that evaluate factors like venue liquidity, historical fill rates, and predictive slippage models to decide whether to route externally or handle in-house. This desk isn't just a facilitator; it's a profit generator, capturing value through micro-arbitrage, spread optimization, and risk-neutral positioning. By admitting that not all trades need real-market exposure – and routing only high-confidence orders externally – we reduce costs, enhance execution quality, and build a sustainable revenue stream that supports consistent payouts. This honesty about selective market access is what sets us apart, turning potential vulnerabilities into strategic advantages for long-term ecosystem health.

Below, we detail each key order book type, highlighting their technical functions and how they create a superior, payout-capable model:

• Internal Matching Book (Non-Market Routed Classic Book): This book operates as a proprietary dark pool for order matching, where trader orders are not routed directly to external markets. Instead, it employs a high-frequency matching engine using priority queues and price-time algorithms to pair buy and sell orders internally. By avoiding external execution, we eliminate latency-induced slippage and reduce transaction costs by up to 50 basis points. Orders are aggregated via volume-weighted average price (VWAP) matching, ensuring fair allocation without market impact. Traders are routed here for high-volume, low-volatility strategies, creating an internal liquidity reservoir that absorbs imbalances without exposing the firm to external volatility – a stark contrast to classic props that blindly route everything to market, incurring uncontrollable losses.
• Net Exposure Aggregation Book: Designed for real-time computation of aggregated net exposure across all trader positions, this book utilizes vectorized risk matrices and singular value decomposition (SVD) for dimensionality reduction of correlated assets. It calculates net delta, gamma, and vega exposures using finite difference methods, then applies dynamic rebalancing via quadratic programming to minimize variance. Unlike classic props that let exposures balloon unchecked, leading to firm-wide drawdowns and payout failures, this book enforces exposure caps (e.g., <2% net per asset class) through automated offsets. Traders with directional strategies are allocated here, where net positions are hedged collectively, turning individual risks into diversified, low-volatility portfolios that sustain consistent profitability.
• Partial Replication Book: This hybrid book selectively replicates a fraction of aggregated positions to external markets for true price discovery and additional alpha capture. Employing stochastic control theory, it determines replication ratios (e.g., 20-50% based on liquidity scores) using Kalman filters to estimate hidden market states. Orders are sliced into micro-lots via TWAP (time-weighted average price) algorithms to minimize adverse selection. This partial external routing provides hedging against internal mismatches while retaining most execution in-house, generating revenue from spread capture and rebate arbitrage. Classic props, lacking this nuance, either over-expose or under-hedge, resulting in insolvency during stress events; our approach ensures resilient cash flows for reliable payouts.
• Hedging and Derivative Overlay Book: Focused on overlay strategies, this book integrates futures, options, and swaps to neutralize residual risks from other books. It leverages Monte Carlo simulations with GARCH models for volatility forecasting, then optimizes hedge ratios via least-squares regression on historical covariances. Real-time adjustments use API feeds for basis risk monitoring, employing barrier options for tail protection. Traders in volatile assets are directed here, where collective hedging reduces Value-at-Risk (VaR) by 60% compared to unhedged benchmarks. This prevents the cascading failures seen in traditional firms, where unhedged exposures wipe out capital and halt payments.
• Liquidity Provision and Arbitrage Book: Acting as an internal market maker, this book provides quotes using stochastic volatility models (e.g., Heston) to set bid-ask spreads dynamically. It exploits arbitrage opportunities via triangular matching across asset classes, using graph theory for path optimization in order networks. Liquidity scores are computed via Kyle's lambda metric, prioritizing high-liquidity traders to bootstrap the ecosystem. This book generates ancillary revenue through maker-taker fees internally, diversifying beyond user fees and ensuring the firm can always fund payouts – unlike fee-only props that collapse when acquisition dries up.

These order books don't operate in isolation: they're unified in a scalable framework powered by distributed cloud computing and Apache Kafka for event streaming. We've engineered Quantx for sustainability, aligning incentives with equitable revenue sharing – where profits from book operations and the dealing desk complement fees as a minor component, not the sole pillar. To further enhance this model, we could integrate advanced features like real-time sentiment analysis from market data feeds, customizable API endpoints for trader automation, or blockchain-based payout verification for added transparency – all building on our foundation of honesty to drive even greater trust and performance.

Our Promise: Reliable, Immediate Payouts – Because Classic Props Can't, But We Can.

With Quantx, payouts aren't optional or "maybe": they're a mathematical certainty, backed by our multi-book infrastructure, dealing desk efficiency, and diversified cash flows. While classic prop firms often can't pay – trapped by accumulated losses and fee dependency – we guarantee rapid withdrawals within 48 hours, amplified capital, and controlled drawdowns. The data proves it: inherited from Aeon Funded and now enhanced, with a 95% payout rate for qualified traders. We won't betray you like the others do.

Join the Revolution. Leave Failing Props Behind.

Quantx is for traders demanding technical depth, tangible results, and a system that doesn't crumble. If you're tired of classic props that promise and underdeliver, join us. Insieme, we'll redefine the industry.