These rules apply exclusively to challenges and funded accounts on the Bybit platform. They are in place to ensure realistic trading behavior and prevent abuse of demo environment limitations that do not reflect live market conditions.
To maintain the integrity of our trading environment and ensure that funded accounts reflect realistic trading performance, we actively monitor for practices that take advantage of demo-only conditions or expose accounts to excessive risk. The following two practices are considered soft breaches and may result in PnL adjustments, or reassignment of a new challenge.
1. Unrealistic Execution & Slippage
Bybit demo environments do not simulate real slippage or market impact, which can lead to trades filling at ideal prices that would not be achievable on a live exchange. This results in unrealistically favorable execution and inflated profits.
Examples of unrealistic execution:
- Market orders filled at exact levels with no slippage during high volatility
- Large positions filled instantly without impacting price
- Tight entries and exits on high-volatility moves with no spread or execution delay
What happens:
- Trades may be manually reviewed and PNL adjusted to reflect realistic execution
- Only 40% of profits generated from flagged trades may be counted toward your profit target
- In certain cases, traders may be asked to trade on platforms with real liquidity (e.g., Cleo)
We regularly review trade outcomes from the Bybit demo environment and compare them with real market data. If we identify a significant difference in PnL due to the lack of slippage or execution realism, it will be factored into challenge evaluations.
However, we will not fail a challenge solely because of this. We recognize that such discrepancies result from the limitations of the Bybit demo environment. The purpose of this rule is to ensure realistic trading behavior and prevent abuse of conditions that would not be replicable in a live trading environment.
2. Low-Cap Altcoin Exposure
Low-cap assets are often highly volatile and illiquid, making them difficult to replicate in live trading conditions. To prevent unrealistic performance from trades on such assets, we apply strict limits.
Definition:
- Market capitalization below $100 million
- Typical 24h volume: $500K–$5M
- Includes coins listed in the Bybit Innovation Zone
Limit:
- You must not allocate more than 5% of your initial account balance across all low-cap assets at any one time (including leverage).
What happens if you exceed this:
- You may be reassigned a new challenge
- Only 40% of profits generated from low-cap assets may be counted toward your profit target
How to verify:
Check CoinMarketCap for the coin’s market cap before trading. If under $100M or listed in Bybit’s Innovation Zone, treat it as low-cap.
Note: This rule applies to both Cleo and Bybit challenges.