Evaluation Rules

These Evaluation Rules ("Rules") govern participation in all simulated trading evaluation programs ("Programs") offered by The Black Vault Funding, Inc. ("Company," "we," "us," or "our"), a Minnesota corporation. By activating a Program account, you agree to be bound by these Rules in their entirety. The Company reserves the right to amend these Rules at any time; continued participation after notice of amendment constitutes acceptance.

1. Program Structure Overview

Programs consist of one or more evaluation phases followed by a funded phase. Each phase carries its own performance objectives and risk parameters as set forth in the applicable Program documentation and in these Rules. The Company may offer multiple program tiers; specific profit targets and account sizes will differ by tier but the risk parameters in Sections 3 through 5 apply uniformly to all tiers unless the applicable tier documentation expressly states otherwise.

2. Profit Target

Each phase has a defined profit target expressed as a percentage of the starting simulated account balance:

Phase	Typical Profit Target	Measurement Basis
Phase 1 (Challenge)	8% of starting balance	Unrealized + realized P&L at end of trading day
Phase 2 (Verification)	5% of starting balance	Unrealized + realized P&L at end of trading day
Funded Phase	No target required	Profit split available upon request (see Payout Policy)

Profit targets must be achieved without simultaneously violating any of the risk limits set forth in these Rules. Reaching a profit target while in drawdown violation does not satisfy the objective and may result in disqualification.

3. Maximum Daily Loss Limit

The maximum daily loss limit ("Daily Loss Limit") represents the maximum amount by which your simulated account equity may decline in a single trading day (00:00 CT to 23:59 CT).

• Standard Daily Loss Limit: 5% of the starting balance for the current phase.
• The Daily Loss Limit is measured against the prior trading day's closing equity or the original starting balance, whichever is lower (a "reset floor" model).
• The Daily Loss Limit includes unrealized (open position) losses. An open position that exceeds the Daily Loss Limit in real-time constitutes a violation regardless of whether the position is subsequently closed at a smaller loss.
• Violations of the Daily Loss Limit will result in immediate disqualification from the current phase. No refunds are provided upon disqualification (see Refund Policy).

4. Maximum Trailing Drawdown

The maximum trailing drawdown ("Trailing Drawdown") is a dynamic limit calculated as follows:

• The Trailing Drawdown Floor rises with equity peaks but does not fall when equity declines. Once your equity reaches the floor, it locks at the original starting balance level (i.e., it does not trail above the starting balance for standard programs, preventing the floor from rising above your funded amount).
• If your account equity at any time, including on open positions, touches or falls below the Trailing Drawdown Floor, your account is immediately disqualified.
• Specific program tiers may use a fixed drawdown rather than a trailing drawdown; the applicable Program documentation will specify which applies.

5. Minimum Trading Days

To satisfy a phase objective, you must actively trade on a minimum number of calendar days within the phase window:

• Phase 1: Minimum 5 active trading days.
• Phase 2: Minimum 5 active trading days.
• An "active trading day" is a day on which at least one complete round-trip trade (open and close) is executed in the account during regular trading hours for the applicable instrument.
• Days on which only positions are held overnight from a prior session (no new opens or closes) do not qualify as active trading days.

6. Consistency Rule

A consistency requirement applies to Phase 1 and Phase 2 to prevent evaluation gaming through single-day outlier performance:

• No single trading day's net realized profit may exceed 40% of the total net realized profit at time of phase completion.
• If, on the day you achieve your profit target, a single-day profit represents more than 40% of the total, the phase objective is not satisfied until you continue trading on additional days to bring the single-day percentage into compliance.
• This rule does not apply to the Funded Phase.

7. Phase Duration and Expiration

• Phase 1: 30 calendar days from account activation.
• Phase 2: 60 calendar days from Phase 2 account activation.
• Funded Phase: No expiration; however, accounts inactive for 60 or more consecutive calendar days may be subject to review or termination at Company discretion.
• Failure to achieve the profit target within the allotted time results in disqualification. Extensions are not available unless expressly offered as a paid add-on in the applicable Program documentation.

8. Prohibited Conduct

The following conduct is strictly prohibited across all phases and will result in immediate disqualification without refund:

1. Account Sharing: Allowing any third party to access, log into, or trade any Program account.
2. Automated Trading Systems / Bots: Use of fully automated execution systems (including but not limited to EA/algo bots, copy-trading services, or signal-following services) without prior written approval from the Company.
3. Latency Arbitrage: Exploiting data-feed latency, platform delays, or quote discrepancies to generate artificially favorable fills.
4. Opposite Account Strategies: Simultaneously holding opposite-direction positions in related accounts (including accounts held by related parties) to guarantee outcomes irrespective of market direction.
5. Martingale and Grid Strategies: Use of exponential position-sizing strategies designed to recover prior losses through uncapped risk escalation.
6. Manipulation of Simulated Data: Any attempt to manipulate, falsify, or exploit the simulated data feed or order execution engine.
7. News Restriction Violations: Where news restrictions are specified in your Program documentation, opening or holding positions within the restricted window before and after scheduled high-impact economic releases (e.g., FOMC, NFP, CPI).

9. Permitted Instruments and Sessions

• Trading is permitted only in instruments available within the Company's simulated platform for your program tier.
• Leveraged positions must not exceed the maximum contract/lot limits specified in the applicable Program documentation.
• Positions may not be held through scheduled exchange maintenance windows or periods when the Company's data provider suspends pricing.
• Overnight holds are permitted unless the applicable Program documentation specifies "no overnight" as a restriction for your tier.

10. Scaling Plan (Funded Phase)

Traders who maintain consistent performance in the Funded Phase may be considered for account scaling at Company discretion. Scaling is not guaranteed and is subject to review of trading history, adherence to these Rules, and compliance with all Company policies. The Company will communicate scaling opportunities directly to eligible participants.

11. Account Reset

Account resets may be offered as a paid feature on certain program tiers. A reset restores the simulated account balance to the original starting balance and restarts the phase clock. Resets do not waive prior violations; a disqualified account is not eligible for a reset unless expressly stated in the reset feature terms.

12. Monitoring and Audit Rights

The Company reserves the right to review all trading activity at any time for compliance with these Rules. You acknowledge that the Company employs automated and manual review processes. Upon the Company's reasonable request, you agree to provide documentation regarding your trading methodology. Failure to cooperate with a compliance review may result in disqualification.

13. Consequences of Violation

• Breach of any Rule results in immediate disqualification from the affected phase.
• The Company may, in its sole discretion, disqualify a participant from all current and future Programs where material or intentional violations are identified.
• No Program fees are refundable upon disqualification (see Refund Policy).

14. Amendments

The Company may amend these Rules at any time by posting revised Rules on this page with an updated effective date. For active participants, amended Rules apply to new phases initiated after the amendment date; ongoing phases continue under the Rules in effect at the time of phase activation unless the amendment addresses a legal or regulatory requirement that applies retroactively.

15. Contact

Questions regarding these Rules should be directed to:
The Black Vault Funding, Inc.
Email: support@theblackvaultfunding.com