Ruben Abitbol, former Head of Trading and Risk at The5ers, has launched Rubik Consulting – a firm operating under the Risk Management as a Service (RMaaS) model, aimed at helping prop firms manage risk and build long-term sustainability. He warned that even 1% of traders left unchecked could be enough to push an entire company into bankruptcy.
Growing risk pressure in the prop trading industry
The prop trading industry is facing a turbulent period, with dozens of firms collapsing due to poor cash flow and risk control. According to recent data, between 80 and 100 prop firms shut down in 2024, primarily because of inadequate risk and liquidity management.
In response to this situation, Ruben Abitbol – former Head of Trading & Risk at The5ers and former executive at PropFirmMatch – has announced the launch of Rubik Consulting, a firm specializing in risk management advisory for prop trading companies.
“Most prop firms don’t truly understand risk, and that’s exactly why they fail,” Abitbol told Finance Magnates.
According to him, the issue isn’t fraud but rather a misunderstanding of cash flow timing.
“Today’s revenue affects payouts months later. When growth slows down, those payout obligations catch up and eat away all the profits,” he explained.
Rubik Consulting and the Risk Management as a Service (RMaaS) model
Rubik Consulting operates under the Risk Management as a Service (RMaaS) model, offering outsourced risk management solutions that enable prop firms to access professional expertise they often lack the resources to build internally.
“Only large firms can afford in-house risk teams. Smaller prop firms tend to handle it themselves, and that’s a critical mistake,” Abitbol emphasized.
Rubik’s services are designed to support firms from the startup phase to large-scale operations, including:
Designing challenge structures and operational frameworks
Conducting advanced trading data analysis
Monitoring payouts and cash flow
Detecting risky or fraudulent trading behavior
Managing technological, payment, and reputational risks
Currently, Rubik Consulting is working with over 12 prop firms across various stages of development.
Less than 1% of traders can bankrupt a prop firm
RUBIK Consulting just went live
Abitbol warned that even a tiny fraction of traders – less than 1% – can bankrupt an entire prop firm if effective monitoring systems are not in place. “Less than 1% of traders can destroy a prop firm if they’re not detected and managed properly,” he said. He noted that many firms are currently operating with payout ratios as high as 50%, a level he described as “dangerous for small businesses.”
After implementing Rubik’s risk control procedures, some clients have successfully reduced payout ratios to 25–30%, improving both profitability and financial stability. Abitbol also highlighted what he called the “smoke revenue” effect when companies boost short-term sales through low-quality affiliate traffic, only to pay double later to cover losses caused by fraudulent or high-risk traders.
“A decline in revenue after implementing risk control is normal; it’s actually a healthy correction,” he emphasized.
Prop trading lacks a unified risk framework
According to Abitbol, the prop trading industry still operates without a standardized risk management framework, unlike the traditional Forex market, which is supported by well-defined regulations and established technologies.
“In Forex, everything is on the table. But prop trading is a completely new environment no standardization, no benchmarks, and every firm interprets risk in its own way,” he explained.
He shared that Rubik Consulting is working toward developing an industry-wide risk standard while also advocating for light regulation to help filter out unsustainable companies.
“I support regulation. It will keep sustainable firms in the game and protect both traders and the industry,” Abitbol said.
Looking ahead, Abitbol predicted that Risk Management as a Service (RMaaS) will soon become an industry requirement rather than a competitive advantage.
“In the near future, outsourced risk management won’t just be an edge; it will be a matter of survival,” he concluded.
Conclusion
Launched amid a challenging period for many prop firms, Rubik Consulting, founded by Ruben Abitbol, represents more than just a consulting service; it stands as a wake-up call for the entire prop trading industry about the critical importance of risk management. Without proper risk management, a prop firm can go bankrupt because of just 1% of its traders. This message captures the harsh reality facing many companies in 2025, where discipline, transparency, and proactive risk control are no longer optional they are essential for survival.
