Restricted Trading Practices

At Verodus, our mission is to foster genuine, responsible, and sustainable trading habits. We seek individual traders who can apply their unique systems and strategies across multiple market conditions. Following these rules is mandatory and is your primary responsibility when participating in our evaluation phases and funded accounts.

While our programs are designed to reward skilled speculative trading, we require all participants to trade in a manner that is reasonably replicable in actual financial markets. These rules are intended to protect our services from manipulative and abusive behavior. Verodus retains sole discretion in determining whether trading activity violates the spirit or letter of this policy.

(1). System Exploitation and Unfair Advantages

Traders must rely on genuine market analysis rather than exploiting technological loopholes or pricing delays.

• Comprehensive Arbitrage Taxonomy: Capitalizing on pricing discrepancies, latency issues, or delayed data feeds. Verodus strictly prohibits specific "math-based" exploits, including latency, triangular, statistical, spatial, and rollover arbitrage.

• High-Frequency Trading (HFT): Deploying ultra-fast algorithms designed to execute massive volumes of trades in milliseconds to exploit minor technological inefficiencies rather than real market movements.

• Glitch Exploitation: Knowingly or unknowingly executing trades based on platform errors, frozen price feeds, or inaccurate quotes.

• Tick Scalping & Rollover Abuse: Utilizing rapid-fire trading to profit from single-tick fluctuations, or deploying Expert Advisors (EAs) specifically programmed to exploit low-liquidity price spreads during nighttime rollover periods.

• News Trading Addon: Accounts that purchase the News Trading Addon are granted full permission to engage in news trading without any restrictions, time windows, profit-removal penalties, or breach risk tied to news events.

(2). Collusion and Third-Party Management

Your trading account must reflect your independent skills and analysis. Services are strictly for personal use.

• Account Sharing and Reselling: Allowing any third party to access, trade, or manage your account. Selling or transferring a funded account to another individual or entity is strictly banned.

• Account Management Services: Utilizing "Pass Your Challenge" services or hiring third-party entities to trade on your behalf to secure funding.

• Coordinated Group Trading: Collaborating with other traders to execute the same setups, or opening opposing positions across different accounts to guarantee a winning outcome for one party.

• IP and Coordination Rules: Any accounts found to be sharing IPs, hardware IDs, or entering identical positions within a tight time window will be flagged for manual review and a potential breach.

• Mass-Distributed EAs and Copy Trading: Traders may utilize EAs and automated trading systems. However, if you use a commercially available or third-party EA, you run the risk of other traders executing the exact same strategy. If our systems detect multiple accounts reflecting identical trade entries and exits, they will be flagged for copy trading and coordinated group trading.

(3). Unrealistic Market Behavior and Poor Risk Management

We reward consistent risk management. Strategies that mimic gambling or cannot be executed in live markets will be flagged.

• News Trading (Tiered Breach Model): To protect against unrealistic slippage, a ±2-minute restricted window is implemented around high-impact events for funded accounts (unless utilizing a specific "2-Step Swing" account model). Within this window, the following rules apply:

◦ First Violation: Any manual trade execution or automated TP/SL fills will result in the removal of all profits generated from the restricted window.

◦ Second Violation: A second instance of trading during the restricted window will result in a hard breach, leading to immediate account termination and permanent closure.

• News Bracketing and Gap Trading: News bracketing (straddling) is explicitly banned. Gap Trading is defined as any position opened within 60 minutes of a market close and held through the reopen.

• One-Sided Bets and Gambling: Taking massive, unanalyzed positions in a single direction without regard for technical or fundamental conditions, or intentionally blowing an account ("account rolling").

(4). Technical Platform Abuse

• Server Hyperactivity: Running automated bots or EAs that overload our trading servers is prohibited. Verodus enforces a specific server request limit of 2,000 requests per 24 hours.

• Order Book Spamming: We prohibit the fragmentation of single trade ideas into numerous micro-lots intended to circumvent margin limits or stress-test the platform.

(5). Consequences of Policy Violations

Adhering to these guidelines is mandatory. If our risk team determines that an account is utilizing any of the prohibited strategies outlined above, we reserve the right to take immediate corrective action. This may include:

• Removal of conflicting trades and profits from your history (standard for First News Violations).

• Temporary restrictions or limitations placed on your trading platform.

• Immediate disqualification from the evaluation process.

• Complete termination of your funded account (standard for Second News Violations or System Exploitation).

Profits obtained through violations may be withheld or clawed back, even after payout. Challenge fees are non-refundable once trading activity has commenced.