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Bybit Demo Compliance Rules

These rules apply exclusively to Bybit-based Challenges and Funded Accounts. They are designed to ensure realistic trading behavior and prevent abuse of demo-environment limitations.

The following practices are classified as soft breaches and may result in PnL adjustments or reassignment to a new challenge.

Unrealistic Execution & Slippage

Bybit’s demo environment does not simulate real slippage, liquidity depth, or market impact. As a result, certain trades may execute at prices that would not be achievable under live market conditions.

Examples

  • Market orders filled at exact levels during high volatility with no slippage
  • Large positions filled instantly without price impact
  • Tight entries and exits during volatile moves with no spread or delay

Monitoring & Consequences

  • Trades may be manually reviewed.
  • PnL may be adjusted to reflect realistic execution conditions.
  • Only 40% of profit generated from flagged trades may count toward the profit target.
  • In certain cases, traders may be required to trade on platforms with real liquidity (e.g., Cleo).

A challenge will not be failed solely due to demo slippage discrepancies. This rule exists to maintain performance realism and prevent structural exploitation of demo conditions.

Low-Cap Altcoin Exposure

Low-cap assets often exhibit limited liquidity and extreme volatility, making live replication unreliable.

Definition

An asset is considered low-cap if:

  • Market capitalization is below $100 million
  • Typical 24h volume ranges between $500K–$5M
  • It is listed in Bybit’s Innovation Zone

Exposure Limit

You must not allocate more than 5% of your initial account balance (including leverage) across all low-cap assets at any time.

Consequences

  • Reassignment to a new challenge
  • Only 40% of profit from low-cap trades may count toward the profit target

Verification

Before trading, verify the asset’s 24h trading volume on Bybit.
If it is below $5M or listed in the Innovation Zone, treat it as low-cap.

Important

  • The Unrealistic Execution rule applies only to Bybit demo environments.
  • The Low-Cap Exposure rule applies to both Cleo and Bybit challenges.