Terms of use in a fully simulated environment

2. Types of challenges

2.1 Standard Challenge

A two-phase challenge intended for traders who want to go through the classic process of prop trading.

After successfully completing both phases, the subscriber gains access to a well-founded account with Profit Split 80:20 (80 percent of profit for the trader, 20 percent for XHEDGERS).

2.2 XCHALLENGE

A special type of challenge with an extended reward model.

The rules are the same as for the Standard Challenge, the difference lies in the amount of profit split (100:0) and in the unlocking system called. XBOOST – additional financial reward paid from the revenues of the central corporate account XHEDGERS.

XBOOST appreciates consistent performance, discipline and long-term stability of business results.

3. Process of challenge and evaluation phase

3.1 Phase 1 – Evaluation Phase 1

The goal is to achieve a profit target of 10 percent of the initial value of the account without exceeding the specified risk limits.

This phase has no time limit to meet. The minimum number of trading days is four.

Limits: Daily Drawdown ≤ 5 percent, Max overall loss ≤ 10 percent.

3.2 Phase 2 – Evaluation Phase 2

The goal of the second phase is to achieve a profit target of 5 percent, again if all risk limits are met.

A minimum of 4 trading days is required.

Limits: Daily Drawdown ≤ 5 percent, Max overall loss ≤ 10 percent.

3.3 Funded Phase (Fase)

After successfully completing both phases, the subscriber gains access to the funded account.

Profits can be paid out in the form of a payout after 14 days have passed since the activation of the funded account. Further requests for payment can be submitted at intervals of the next 14 days at the earliest. During the well-founded phase, the Consistency Rules and Risk Management rules continue to apply.

4. Prompt parameters

Explanation:

• Daily Drawdown Maximum Daily Loss, Calculated from Current Equity (Equity Based)

• Max Overall Loss Total loss to initial balance

• Inactivity Rule If no trade is open for a given period of time, the current challenge or funded account will be closed

• Consistency Rule determines an even and stable distribution of gains within the entire challenge

• NEW HOLDING Opening and closing positions is prohibited 5 minutes before and 5 minutes after the announcement. Holding already open positions is allowed

• Inactivity Rule If no trade is open for 30 days, the prompt or funded account closes without the right to a refund

Definition of Consistency Rule rule

• No single trade or trading day may make up more than 45 percent of the total profit achieved in the given phase of the challenge (Evaluation Phase 1, Evaluation Phase 2 or Funded Phase)

• The rule applies to closed trades and is evaluated on the basis of actually realized profit

The purpose is to confirm the consistency of the business approach and the ability to manage risk stable.

Example:

• Trader has a $20,000 account, target profit 10 percent = $2,000, consistency rule 45 percent

• Day 1: Trader makes $1,100

• Day 2: Trader makes $300

• Day 3: Trader makes $600

→ Total Profit = $2,000, but the most profitable day is $1,100 = 55 percent of the total profit

→ So the trader did not meet the consistency rule

Due to the fact that the Consistency Rule has been exceeded, the profit target is increased to a value that is calculated as follows: Profit value that exceeded 45 percent divided by 0.45. The result is a new Profit Target value, which the trader must fulfill and again must not exceed the Consistency Rule.

$1,100 / 0.45 = $2,444.44

→ Once his total profit reaches $2,444.44, the daily profit of $1,100 will be exactly 45 percent and the trader can complete the phase.

5. Trading Rules

• Trading takes place exclusively in a simulated environment

• Only instruments listed in the official list of allowed assets can be traded

• Each trade must be carried out in accordance with Risk Management Policy

• Opening new stores is not allowed 5 minutes before or 5 minutes after High Impact News (High Impact News)

• Trading on weekends is not allowed

• Using EA is prohibited

• Violation of any rule may result in account invalidation

6. Disabled strategies

The use of any strategies that artificially distort results, bypasses risk management or do not represent realistic business behavior is prohibited.

The aim of these rules is to ensure a fair and objective assessment of the participants’ business skills.

6.1 Martingale

The use of a martingale strategy, consisting of doubling the size of positions after losing trade in order to compensate for losses, is prohibited.

This method leads to disproportionate risk and exceeding the drawdown limits.

6.2 Grid Trading

The use of grid strategies that open multiple positions at regular intervals without a clear risk management or without a fixed stop loss is prohibited.

Such strategies do not reflect realistic business behavior.

6.3 Hedging between accounts

Opening opposing positions on multiple accounts in order to secure a profit regardless of market development is prohibited.

Coordinated cooperation between several participants of the challenge, leading to an artificial distribution of risk, is also considered hedging between accounts.

6.4 Latency Arbitrage

The use of latency between data sources or servers with the aim of profiting from the time delay of prices is prohibited.

Such behavior represents technical misuse of the system.

6.5 CopyTrading and Mirror Trading

The use of systems that automatically copy the trades of other accounts is prohibited.

Xhedgers challenges evaluate independent business decision-making, not trade duplication.

6.6 Use of external signal services

The use or monitoring of external signal services that are not part of your own business plan is prohibited.

Trading according to the instructions of public or paid signals without independent analysis of the participant is also considered a violation of the rules.

6.7 Using Expert Advisors (EA)

The use of automatic trading systems (Expert Advisors, EA) is completely prohibited in all types of Xhedgers challenges.

Participants may not launch, test or use any software that automatically opens, closes or manages positions.

This ban includes:

• Using EA to automatically enter trades

• Running external algorithms via API

• Using semi-mechanical tools that make inputs without manual confirmation

Violation of any rule leads to immediate termination of the account without the right to refund.

6.8 High Frequency Trading (HFT)

Running high frequency strategies that generate excessive trades in a short time or abuse micro latency is prohibited.

These strategies can affect the stability of the system and are not representative of regular retail trading.

6.9 News Scalping

Opening positions at the time of publication of macroeconomic messages in order to take advantage of extreme volatility is prohibited.

New stores must not be opened 5 minutes before and 5 minutes after highly important economic events.

6.10 Other forms of system abuse

Any other methods aimed at circumventing the rules or manipulating the results are prohibited.

This includes, for example:

• Artificially increasing profit on simulated data

• Handling the equity account

• Using external connections or APIs to influence results

Violation of these rules leads to the immediate termination of the current challenge, and in case of repeated violations, to block the account without the right to refund and to re-enter the new challenge.

7. Allowed instruments and leverage

8. Rules for Drawdown and Losses

• Daily Drawdown is counted from the current Equity (Equity Based)

• Maximal drawdown is static (static loss) and refers to the initial value of the account

• Exceeding any limit leads to automatic account termination

• The system continuously monitors all changes in real time

9. Payments, refunds and XBoost

9.1 Payouts (Payouts)

Payments of profits from the well-founded account can be drawn after 14 days have passed from the activation of the well-founded account.

Further requests for payment can be submitted at intervals of the next 14 days at the earliest.

Every payday request is subject to business history review, compliance with consistency rules and valid drawdown limits.

Payments are only possible if:

• Has not been exceeded by the Daily Drawdown or Maximal Drawndawn

• Participant has met all rules of consistency and risk management

• The amount requested pay exceeds the minimum value of $100

Note: Profit payments do not mean the direct transfer of real funds from the markets, all profits arise within the simulated environment and their payment is a motivational reward paid by Xhedgers.

9.2 Profit Split

Profit distribution depends on the type of challenge:

In both cases, payments are made through cryptocurrencies (USDT ERC20 / TRC20, USDC, BTC) or by manual bank transfer (RISE, SEPA, Wire Transfer).

Payments are only possible if:

• Has not been exceeded by the Daily Drawdown or Maximal Drawndawn

• Participant has met all rules of consistency and risk management

• The amount requested pay exceeds the minimum value of $100

Note: Profit payments do not mean the direct transfer of real funds from the markets. All profits arise within the simulated environment and their payment is a motivational reward paid by Xhedgers.

9.3 Challenge fee refund

As part of the support of long-term successful traders, Xhedgers offers the option of refunding the registration fee for the challenge.

refund is provided upon successful completion Fourth Payout (4th Payout) from a funded account.

Refund conditions:

• Participant must be active in a well-founded phase

• All previous payouts must be successfully approved

• The refund applies to the original amount of the summon fee

• Refund is paid in the same way as profit payments

9.4 Xboost system (bonus model)

Xboost is a unique reward system that is part of the special Xchallenge challenge.

In addition to the standard profit earned within the funded account, participants are also awarded a bonus xboost, paid from the revenues of the central corporate account xhedgers.

xboost principle

• The bonus is paid together with Payout depending on the account’s appreciation achieved

• The amount of Xboost depends on the account appreciation band achieved since the last paycheck

• The higher the account’s appreciation, the higher the bonus awarded

• Specific bonus values will be determined internally and published in the Current XBoost table section on the website link to xchallenge and anchor to the table from Xboost

Xboost Program Destination

xboost rewards persistence, consistency and professionalism.

The purpose of the program is not to appreciate one extraordinary trade, but to a long-term stable performance and discipline in risk management.

Xboost funding source

Xboost is funded by the revenues of the Xhedgers central corporate account, which manages the company’s equity in real markets.

A trader does not invest any own funds and does not contribute to the risk of real trading.

Reward has a character motivation bonus, not investment participation.

9.5 Payout / xboost application procedure

1. A trader submits a payment request through a user portal

2. The system automatically verifies that all Consistency and Risk limit conditions are met (when detecting a possible violation of the rules, the merchant is also manually checked)

3. Approved pay is processed to 48 hours from confirmation

4. At the same time as Payout, if it is an xchallenge, the relevant is paid xboost bonus

All payments are made in USD or in the equivalent value of the selected cryptocurrency according to the current exchange rate.

9.6 Transparency and Paycheck Control

Each payment is registered in the client portal and provided with a confirmation of processing.

Xhedgers reserves the right to delay payment in case:

• Manual account verification must be done (Manual Review)

• The system detects possible violations of the Consistency rules or prohibited strategies

• Identity verification or additional control already takes place when switching to a funded account (KYC Verification)

9.7 Final Provisions for Payments

• All payouts are of a motivational reward, not an investment return

• Xhedgers is not a financial institution and does not manage client assets

• All funds paid within Payouts and Xboost are internal rewards within the Prop Trading program

• Violation of any rule may result in loss of pay or refund

10. Free trial and switching to a paid challenge

Free trial is 14 day trial version Challenges with Rules:

• Profit Target: 5 percent

• Minimum number of trading days: 3

After meeting these conditions, the trader can switch to a selected paid challenge (Standard Challenge or Xchallenge).

When transitioning has the option transfer the profit achieved from the free trial into a new challenge, thereby smoothly following up on his previous performance and continuing to fulfill the target profit.

Example:

Trader will achieve appreciation in the free trial +3 percent on the bill $20,000.

After purchasing a challenge in the same size (20K Challenge), it begins to trade with an account that corresponds to its previous result and continues to meet the goal 10 percent profit target.

The profit of +3 percent of the free trial is included in the achieved performance and remains preserved.

The transfer of profit from the free trial is possible only when switching to the challenge of the same account size and only if the free trial was fulfilled in accordance with all the rules of the risk management.

11. List of prohibited countries

In accordance with the regulation of the European Union, the international sanctions lists and the security policy of Xhedgers, it is not possible to provide our services to persons or entities with residency in the following countries.

Afghanistan, Belarus, Burkina Faso, Democratic Republic of Congo, Eritrea, Iran, Iraq, Yemen, South Sudan, Cuba, Libya, Mali, Myanmar (Burma), Niger, Russia, North Korea, Somalia, Central African Republic, Sudan, Syria, USA, Canada, Venezuela.

• Prohibited or occupied regions of Ukraine:

Crimea, Sevastopol, Donetsk, Luhansk, Zaporizhia, Cherson.