> ## Documentation Index
> Fetch the complete documentation index at: https://docs.hyro.network/llms.txt
> Use this file to discover all available pages before exploring further.
# Evaluation Rules
> Every rule, what it means, and how it's enforced. Version-pinned on-chain.
These rules are encoded in smart contracts and pinned to your challenge at purchase. They **cannot change mid-evaluation**.
## The rules
| Rule | Limit | What it means |
| ------------------------ | ----------- | ------------------------------------------------------------------- |
| Daily drawdown | 4% | Your equity can't drop more than 4% from the day's starting balance |
| Max loss | 6% (static) | Your equity can't drop more than 6% below your starting balance |
| Profit target | 10% | You pass when you reach +10% |
| Minimum trading days | 5 | You must trade on at least 5 distinct days |
| Profit concentration cap | 40% | No single trade can account for more than 40% of total profit |
## How rules are enforced
A Rust engine monitors your Bybit account continuously — not a human reviewer checking after the fact. An oracle posts your equity and the pass/fail verdict to Solana roughly every 60 seconds during active hours.
This matters: enforcement is automatic and visible. There's no discretionary review where a firm decides after you've succeeded that you broke a rule.
## Why these specific numbers
The ruleset isn't arbitrary. HyroTrader iterated on challenge models across multiple cohorts over five years. The current parameters are tuned for two goals at once: help traders build genuine risk-management discipline, and avoid over-restricting legitimate strategies.
Fraud prevention. Arbitrage rings target firms with no minimum, passing on a single high-conviction trade and extracting payouts on accounts they never genuinely earned. Five days forces multi-session demonstration of risk discipline — short enough not to block legitimate traders, long enough to filter exploits.
It prevents passing on one outsized gamble. Genuine skill shows up across multiple trades, not a single lucky position.
## Rule version pinning
Your evaluation runs under a specific rulebook version (e.g. `v1.0`). The version is recorded on-chain when you buy the challenge.
* Challenges purchased under `v1.0` are evaluated against `v1.0` rules **even after** `v1.1` is published.
* Every rule change is documented in a public changelog with date, scope, and rationale.
[How the versioned rulebook works →](/resources/decentralization)
## Outcomes
**Pass** — you reach +10% within the rules, across at least 5 trading days. You move to the funded demo at Tier 1 (80/20 split).
**Fail** — you break a drawdown limit or violate a rule. The demo is canceled and the evaluation fee is not refunded.
What changes once you pass, and how Tier 1 / Tier 2 splits work.