Challenge Rules
How Klovr's simulated private alpha challenge works, what traders need to do, and what causes an account to pass or breach.
Current status
Klovr challenges are simulated during private alpha.
There are no deposits, no withdrawals, no funded capital, and no identity verification. Passing the challenge can qualify a trader for a Performance Passport, but it does not guarantee funding, payouts, prizes, or future account access.
Rules at a glance
The goal
The challenge tests whether a trader can grow a simulated account while respecting clear risk limits.
To pass, a trader must reach $10,800 equity from a $10,000 starting balance. This is an 8% profit target. The trader must also complete at least 5 active trading days and avoid breaching the risk rules.
$10,000 to $10,800 equity (8%), across at least 5 active trading days, without breaching the drawdown or daily-loss rules.
Passing requirements
Drawdown rules
Klovr uses a static total drawdown rule during private alpha. The account starts at $10,000. The maximum total drawdown is 5%, which creates a fixed breach level of $9,500.
The breach level does not trail new highs. If a trader grows the account to $12,000, the total drawdown breach level is still $9,500.
Daily loss rule
The maximum daily loss is $300. Daily loss resets at 00:00 UTC and is measured from the trader's start-of-day equity. If a trader starts the day at $10,600, the daily breach level for that day is $10,300.
Markets and position limits
During v0 private alpha, supported markets are limited to BTC, ETH, and SOL.
Other markets are not part of the v0 challenge unless they are explicitly enabled in the app.
Order types
Private alpha uses market orders for the v0 challenge.
This keeps the challenge simple, readable, and easier to evaluate. More order types may be added later as the product matures.
Fees and equity
Klovr applies a simulated trading fee of 5 bps per fill.
Account equity includes trading PnL after simulated fees. Open positions, closed trades, fees, and any implemented funding adjustments can affect whether the account passes or breaches.
Consistency review
Klovr also reviews whether performance came from repeatable trading or one oversized lucky day.
Largest winning day should not exceed 50% of total challenge profit. This triggers manual review, not automatic failure.
In private alpha, this is not an automatic breach. It is used to evaluate whether the trader's performance is healthy enough for a Performance Passport or future funding consideration.
Breaches
A breach means the account has broken a risk rule. Once an account breaches, it cannot recover back into a passing state.
What passing unlocks
Passing the simulated challenge can qualify a trader for a Performance Passport.
A record of trading performance and risk discipline. It helps traders build reputation inside Klovr and may inform future DAO funding decisions when funded accounts go live.
Passing does not guarantee funding, payouts, prizes, or future access.
Important notes
The rules shown in the app control the active challenge. If the app and docs ever conflict, follow the rules shown in the app before starting a challenge.
Points are not money, not a token, and not a payout entitlement. The private alpha is designed to evaluate trading performance, risk discipline, and product feedback before funded accounts go live.
Next step
Ready to take the challenge?
Start trading in private alpha, or join Discord for updates.