L7 Select Program Rules

The L7 Select Evaluation is a one-stage simulated trading assessment. Your objective is to satisfy both the Actual Net Realized Profit Target and the Qualification Progress Target within the Evaluation Period without triggering a Daily Trailing Drawdown breach, Static Maximum Drawdown breach or other disqualification.

If the Evaluation becomes Performance Complete, L7 conducts an integrity review. If approved, the result becomes a Verified Pass and L7 may issue an L7 Select Trading Certificate. A Verified Pass advances you to the Funding Requirements in Section 18. A funded account is activated only after those requirements are satisfied, L7 approves activation and the applicable funded-account terms are accepted.

The fixed Evaluation mechanics stated in these Rules govern the applicable rule version. Variable commercial/operational parameters - such as price, trading fees/cost methodology, leverage/position limits, enabled instruments/markets, funding methodology and promotions - may be specified in the Evaluation Specifications / trading interface. L7 may introduce new configurations prospectively, but the Rules and Specifications attached to an existing Evaluation are versioned and are not changed retroactively except as expressly permitted for emergency legal, security, market-integrity or provider restrictions.

• “Initial Balance” means the simulated account balance assigned when the Evaluation begins.
• “Server Equity” means L7’s server-side calculation of account equity using the applicable market prices, risk marks, realized and unrealized P&L, trading costs, funding and marked value of open prediction positions. Server Equity controls over a local display, subject to correction of demonstrable error.
• “Actual Net Realized Profit” means the positive difference, if any, between Initial Balance and the realized account balance after realized trading P&L and applicable trading fees, funding, financing, adjustments and other costs. Unrealized P&L does not satisfy the Actual Net Realized Profit Target.
• “Net Realized P&L” for a UTC day means realized trading profit and loss recognized during that UTC day after applicable trading costs and funding attributed to that day.
• “Qualification Progress” means the cumulative Daily Qualifying Profit calculated under Section 5.
• “Daily High Equity” means the highest Server Equity recorded by L7 during the applicable UTC Day after the day is seeded under Section 6.
• “L7 Reference Mark” means L7’s server-side valuation input for an open position, derived from an approved venue/index/mark price or executable order-book data with reasonable liquidity, staleness and outlier controls and fallbacks appropriate to the instrument.
• “Approved Resolution Source” means the official resolution rules, oracle, market operator or other source designated for an approved prediction market when the market is enabled by L7.
• “UTC Day” means 00:00:00 through 23:59:59 UTC.

The Evaluation Period begins when the Evaluation is purchased and has no fixed end. An Evaluation remains open until it is Performance Complete or a risk limit is breached. An Evaluation on which no trade has been placed for thirty (30) consecutive days is closed and is unsuccessful.

L7 will use reasonable operational criteria when approving prediction markets so that a market is expected either to resolve within a reasonable period or to maintain sufficient executable liquidity for a trader to close. If an approved prediction market becomes unexpectedly untradeable, cancelled, disputed or subject to delayed resolution through no act of the trader, L7 may permit/require closure using a reasonable L7 Reference Mark, restore the account, or provide another technical/customer-service remedy. No trader is automatically entitled to a pass based on unrealized or unresolved prediction-market profit.

L7 may also pause or restore an Evaluation for a material platform outage or demonstrable L7-side technical error. L7 is not required to restore an Evaluation closed for user inactivity, or to remedy device/internet problems, ordinary strategy losses or failure to close otherwise tradable positions.

To become Performance Complete, both of the following must be satisfied: (a) Actual Net Realized Profit must be at least 10% of Initial Balance; and (b) Qualification Progress must be at least 10% of Initial Balance.

For each UTC Day, “Daily Qualifying Profit” equals the lesser of: (i) positive Net Realized P&L for that UTC Day; and (ii) 2% of Initial Balance. A day with zero or negative Net Realized P&L contributes zero. Qualification Progress is the cumulative sum of Daily Qualifying Profit and does not decrease because of a later losing day, although later losses continue to reduce Actual Net Realized Profit and Server Equity.

Profit above the 2% daily qualification limit remains part of the account’s actual realized balance but does not increase Qualification Progress for that UTC Day. This means at least five profitable UTC Days are mathematically necessary to accumulate 10% Qualification Progress, but there is no separate minimum-trading-day rule.

If a position opened on an earlier day is partially or fully closed on a later day, realized P&L is recognized on the UTC Day on which it is realized. The same underlying position or trade thesis may therefore generate Daily Qualifying Profit on more than one UTC Day if profit is actually realized on those different days, subject to the 2% daily cap.

The Evaluation uses a 3% Daily Trailing Drawdown. This is an intraday high-water-mark rule, not a start-of-day snapshot loss rule.

During each UTC Day, L7 maintains the “Daily High Equity,” equal to the highest Server Equity recorded during that UTC Day. On the first UTC Day, the Daily High Equity is seeded immediately after the first executed trade has been booked and the corresponding Server Equity has been calculated. At exactly 00:00:00 UTC on each later day, the prior day’s Daily High Equity expires and the new Daily High Equity is seeded from the then-current Server Equity, including unrealized P&L on positions carried across the reset. Every subsequent Server Equity observation during that UTC Day can increase, but never decrease, the Daily High Equity.

The “Daily Trailing Floor” at any time equals: Daily High Equity minus 3% of Initial Balance. If Server Equity reaches or falls below the applicable Daily Trailing Floor, the Evaluation is breached immediately, even if the account remains above its Initial Balance or later recovers.

Because the Daily High Equity includes unrealized P&L, an intraday increase in open-position value can raise the Daily Trailing Floor. Traders are responsible for managing positions, stops, alerts and automated risk controls accordingly. The trailing rule is intentionally different from a start-of-day snapshot loss rule.

Worked example - $100,000 Evaluation: if Daily High Equity reaches $104,000, the Daily Trailing Floor becomes $101,000. If Server Equity later reaches $101,000 or lower during the same UTC Day, the Evaluation fails even though the account may still be above its $100,000 Initial Balance. At the next 00:00 UTC reset, the daily high is reseeded from then-current Server Equity.

The Static Maximum Drawdown floor equals 97% of Initial Balance and does not move upward when the account makes profits. If Server Equity reaches or falls below that static floor at any time, the Evaluation is breached immediately.

At all times, the effective loss floor is the higher of the Daily Trailing Floor and the Static Maximum Drawdown floor.

Risk limits are monitored continuously using L7’s server-side records and valuation methodology. L7 calculates Server Equity using L7 Reference Marks. Depending on the instrument, a Reference Mark may use an official venue/index/mark price, executable bid/ask or depth-weighted order-book information, modeled spread/slippage, official prediction-market data, or a reasonable conservative fallback when the primary source is stale or unavailable. L7 will apply the same versioned methodology to similarly situated accounts and will not intentionally use an isolated anomalous last trade solely to create a breach.

For an open prediction position, L7 may use a conservative executable mark, including a bid-side valuation for a long outcome position where appropriate, subject to minimum-liquidity, staleness and outlier controls. Prediction-market positions affect Server Equity while open, but prediction-market profit does not become Actual Net Realized Profit until the position is closed or the market is finally resolved under the Approved Resolution Source.

If you believe a breach resulted from a demonstrable data, pricing or system error, contact support promptly with the account ID, timestamp and trades. L7 may correct, void or restore an account for a demonstrable error. Ordinary market volatility, spread widening, slippage, gaps, venue data, liquidation mechanics and user execution errors are not technical errors merely because a different external chart displayed another price.

Evaluation market access may include Hyperliquid spot markets, Hyperliquid perpetual markets and high-volume prediction markets specifically approved and displayed by L7. Only markets enabled in the L7 interface are eligible.

L7 may add, suspend, restrict or remove markets prospectively based on volume, executable liquidity, spread, data quality, expected ability to close or resolve within the Evaluation window, resolution integrity, provider requirements, law, compliance, correlation/concentration risk or other bona fide market-risk considerations. Prediction-market approval may be manual and may be reviewed daily. Approval is not a representation about the probability or outcome of the event.

Removal of a market after a trade is opened will not retroactively invalidate otherwise compliant prior activity solely because the market was later removed, but L7 may restrict new orders, require orderly closure where practicable, or apply appropriate handling if a market is halted, cancelled, voided, disputed or cannot be reliably valued/resolved. For final settlement, L7 follows the Approved Resolution Source and does not independently re-adjudicate the event except to correct a manifest data/implementation error.

Availability in the Evaluation does not guarantee the same instrument, market, leverage or position size will be available in a funded account.

Applicable Evaluation trading fees, spread assumptions, perpetual funding and other market-specific trading costs are stated in the applicable Evaluation Specifications, purchase flow or trading interface and form part of that Evaluation. L7 is not required to use one uniform rate across all products or instruments.

Trading fees, spreads where modeled, perpetual funding, financing, settlement or other disclosed costs affect realized P&L, Server Equity, the Actual Net Realized Profit Target and risk limits according to the displayed methodology. A change to a variable commercial term applies prospectively to new Evaluations only unless the user expressly agrees otherwise or an immediate legal/provider restriction is permitted under these Rules.

L7 may correct manifest booking errors, duplicate fills, bad ticks, cancelled trades, invalid market data or other demonstrable technical errors in good faith.

There is no minimum gross notional volume requirement and no separate minimum number of trading days. Trading volume, order count and meaningless activity do not independently increase Qualification Progress. Qualification Progress can increase only through positive Net Realized P&L, subject to the 2% daily cap.

The Evaluation is intended to assess the trader’s own genuine trading skill, risk management and repeatability. You must make trading decisions for your own account and may not use arrangements designed primarily to defeat the purpose of the Evaluation, manufacture a result or transfer risk/outcomes between accounts or persons.

• Exploiting stale, frozen, delayed, incorrect, off-market or erroneous prices, quotes, market outcomes, reference values, corporate-action data, settlement data or resolution data.
• Latency arbitrage or any strategy primarily designed to exploit a delay between L7, Hyperliquid, a prediction market, data provider, oracle, exchange, broker or other system rather than genuine market risk.
• Exploiting bugs, order-routing defects, duplicate fills, platform errors, resolution defects or simulation/live differences that a reasonable trader would recognize as erroneous.
• Front-running, spoofing, wash trading, layering, market manipulation, outcome manipulation, interference with market resolution, use of material non-public information where unlawful or prohibited, or conduct prohibited by a relevant venue/provider.
• Opening coordinated opposing or economically offsetting positions across multiple L7 accounts, related persons or other traders for the purpose of manufacturing a pass, locking a near-guaranteed outcome or shifting losses.
• Account sharing, renting, third-party account operation, purchasing an Evaluation for another trader, or having another person complete the Evaluation.
• Copying or mirroring another person’s trades in a manner that makes the account materially not your own trading or is intended to circumvent evaluation rules.
• Creating multiple identities, payment profiles, devices, entities or accounts to evade geographic, KYC, account, promotion, prior-enforcement or other restrictions.
• Intentionally generating excessive orders, cancellations, API requests or messages to impair systems or obtain execution unavailable to ordinary users.
• Providing false or misleading information during integrity review, KYC or a funding process where the information is material to eligibility, account integrity or risk assessment.

L7 may distinguish legitimate strategy, research, automation and ordinary trading from coordinated or abusive conduct using account records, devices, timing, correlations, relationships and other relevant evidence.

Automated trading, APIs or bots are permitted only where the relevant L7 feature/account terms allow them. A permitted tool must comply with risk limits, market-abuse rules, infrastructure limits and account-integrity requirements. You remain responsible for every order submitted through your credentials.

L7 may prohibit or restrict mass-distributed “pass service” tools, copied systems, tools used to conceal account sharing, abusive order traffic or automation designed primarily to exploit technical features rather than trade genuine market risk.

Use of a VPN or privacy tool is not by itself prohibited unless account terms state otherwise. You may not use a VPN, proxy, remote desktop or other technology to conceal or misrepresent the jurisdiction from which you are trading, facilitate account sharing, evade sanctions/restricted-country rules or defeat KYC/security controls.

An account is “Performance Complete” only when L7 records that: (a) Actual Net Realized Profit is at least 10% of Initial Balance; (b) Qualification Progress is at least 10% of Initial Balance; (c) all spot and perpetual positions are closed; (d) all prediction-market positions are closed or finally resolved; and (e) there has been no recorded risk-limit breach.

Performance Complete is not final until L7 conducts a reasonable integrity review for prohibited trading, account sharing, linked/coordinated accounts, technical/data errors, artificial results, manipulation, false information or other matters affecting the validity of the Evaluation. A decision to invalidate a Performance Complete result will be made or confirmed by a human reviewer and will be tied to a documented Program Rule, integrity category or demonstrable technical/data issue. L7 may request reasonable explanations or records. A trader is not required to disclose proprietary source code or unnecessary confidential details, but must provide enough information to verify compliance.

If approved, L7 designates the result a “Verified Pass” and may issue an L7 Select Trading Certificate. L7 will not invalidate an otherwise valid pass solely because it later decides not to activate a funded account for the trader.

A Certificate evidences successful completion of the Evaluation and qualifies the trader to continue toward a funded account. It does not itself activate funded access, create an immediate right to capital, compensation or a payout, or fix any specific funded limits. Funding remains subject to the additional Funding Requirements and applicable funded-account terms.

Passing the Evaluation and receiving a Verified Pass / L7 Select Trading Certificate advances the trader to the Funding Requirements that must be completed before a funded account can be activated. These requirements are part of the same L7 evaluation-to-funding pipeline; they are not a second Evaluation and do not alter the objective scoring or validity of an otherwise valid Verified Pass.

18.1 General Conditions

L7 may require a current Verified Pass/Certificate, complete and accurate account information, KYC/compliance approval, eligibility in the trader’s jurisdiction, completion of requested questionnaires or interviews, no unresolved chargeback or material account investigation, and any other reasonable prerequisite disclosed before or during the funding process.

18.2 KYC, Compliance and Eligibility

L7 may verify identity, age, residence, sanctions/PEP status, fraud indicators, tax information, wallet ownership, blockchain risk and other matters reasonably necessary for legal, compliance, security or payout purposes. L7 may use third-party providers.

Failure to complete KYC, inconsistent information, sanctions/prohibited-person status, prohibited jurisdiction, fraud indicators or other material compliance concerns may result in delay, conditions or a decision not to activate a funded account. A decision caused by false information, deliberate location concealment, account abuse or other user breach generally does not qualify for a refund except where law requires otherwise.

18.3 Trading Questionnaire, Interview and Risk Checks

L7 may require one or more trading questionnaires, video or audio interviews, written follow-up questions or other qualitative checks before a funded account is activated. With appropriate notice and consent where required, L7 may record or transcribe interviews for review, quality assurance, dispute, compliance and audit purposes.

Questions may address the trader’s Evaluation trades, decision process, thesis, position sizing, risk controls, loss management, use of leverage, use of prediction markets, automation, time horizon, execution style, concentration, strategy repeatability, market/liquidity capacity, scalability and how the trader would manage funded exposure.

These checks are additional Funding Requirements within the same L7 pipeline. They are qualitative and are not a second Evaluation. L7 is not required to publish or disclose a numerical score, pass mark, proprietary rubric, model, counterparty threshold or internal capital-allocation methodology. A Certified Trader must answer truthfully and cooperate reasonably. Failure to attend or materially cooperate may result in delay or closure of the funding process.

18.4 Factors L7 May Consider Before Activating a Funded Account

• Understanding of the trades taken during the Evaluation and ability to explain material profits, losses and risk decisions.
• Position sizing, leverage, drawdown behavior, stops/alerts/automation and overall risk discipline.
• Repeatability and whether the Evaluation result appears attributable to a coherent trading process rather than isolated luck or non-repeatable circumstances.
• Profit/loss concentration by day, instrument, market, event, strategy or correlated exposure.
• Use of HL spot, HL perps and prediction markets, including liquidity, resolution, scalability and capacity considerations.
• Turnover, holding period, execution style, automation, infrastructure requirements and likely market impact at funded size.
• Prior L7 account history, linked-account indicators, integrity/compliance history and consistency of information supplied to L7.
• L7 capital availability, risk appetite, aggregate exposure, counterparty/venue limits, provider restrictions and operational capacity.
• Applicable law, sanctions, licensing/perimeter restrictions, geographic eligibility, security concerns and reputational/market-integrity considerations.
• Any other bona fide consideration reasonably related to L7’s proprietary capital, risk management, compliance or operation of funded accounts.

18.5 Funding Outcomes

• Approved — L7 offers a funded account on the standard or account-specific terms presented.
• Approved with Conditions — L7 may offer a lower initial allocation, reduced leverage, narrower markets, position/concentration limits, staged activation, enhanced monitoring or other risk controls.
• Deferred — L7 may request additional information, another interview, further checks, or defer activation until provider, capital or market conditions change.
• Declined — L7 may decide not to activate a funded account based on the factors in these Rules. The trader’s valid Certificate remains unless separately revoked for Evaluation-integrity reasons.
• Capacity / Provider Waitlist — L7 may identify the trader as otherwise suitable but defer activation because of current capital, provider, market, legal or operational capacity.

18.6 L7 Discretion and Reasons

L7 may make funded-account activation decisions in its sole discretion acting in good faith and based on legitimate capital, risk, strategy, liquidity, operational, legal, compliance, security, provider or account considerations. No Certified Trader is guaranteed the same outcome as another trader with superficially similar Evaluation statistics. Material approval, conditional approval, deferral or decline decisions will be made or confirmed by a human reviewer; automated risk indicators may inform but will not be the sole unreviewed basis for a final decline.

L7 may record a high-level internal reason category corresponding to the factors in these Rules and, where practical, may provide a high-level decision category or request for further information to the Certified Trader. L7 is not required to disclose confidential provider information, proprietary risk models, internal scores, trade-routing logic, capital-allocation strategy or information that could enable circumvention of L7’s controls.

18.7 Refund, Credit and Alternative Remedies

A decision not to activate a funded account based on a bona fide qualitative risk or suitability assessment does not automatically create a refund right because the Evaluation and Certificate service has already been delivered.

Notwithstanding the foregoing, L7 may, in its discretion and subject to the Refund & Chargeback Policy, issue a full or partial refund of the fee paid for the specific Evaluation, provide an account credit or replacement Evaluation, offer a priority waitlist, make a modified or conditional funded-account offer, or provide another customer-service remedy. L7 may use such remedies for KYC, legal, provider, market, capacity, operational, technical, risk-allocation or other non-misconduct reasons.

If L7 determines that a Certified Trader is otherwise suitable but L7 cannot activate a funded account solely because of L7-side capital or operational capacity, L7 may provide a priority waitlist and/or permit the trader to elect a full refund of the fee paid for the specific Evaluation. A refund does not by itself invalidate a valid Certificate.

A refund or credit is not an admission that the Certified Trader was entitled to funded access, capital, compensation or damages. No release or waiver of non-waivable rights is created merely by processing a refund unless the parties separately agree in writing to a lawful settlement.

18.8 Reconsideration

A Certified Trader may request reconsideration of a funding decline or condition through the support channel within five (5) business days of notice, or another period stated in the decision notice. L7 may conduct a human re-review and may uphold, modify or reverse the decision. Reconsideration does not require L7 to disclose proprietary scoring or confidential third-party information.

18.9 No Strategy Transfer

The trader retains any intellectual-property rights they may have in their underlying trading strategy, code or proprietary methodology. By participating, the trader authorizes L7 to analyze Evaluation and interview data for operation of the L7 pipeline, fraud/integrity review, funded risk assessment, execution/routing decisions, model development, compliance and business analytics as described in the Privacy Policy. This does not grant L7 ownership of the trader’s underlying strategy or source code.

18.10 Funded Trader Agreement

No funded trading authority exists until L7 confirms funding approval, the trader accepts the applicable Funded Trader Agreement and the funded account is activated. The funded offer and Funded Trader Agreement may contain account-specific terms that differ from the Evaluation, including different markets, leverage, position sizes, drawdown methodology, payout terms and risk controls. The Funded Trader Agreement will identify the contracting entity and payout obligor before acceptance.

L7 may update these Rules prospectively. The commercial and risk rules shown for an Evaluation when purchased generally control that Evaluation. L7 may apply immediate security, market-integrity, sanctions, legal or provider restrictions where reasonably necessary, including suspending an instrument, but will not use a new commercial rule solely to retroactively fail otherwise compliant completed trading.

L7’s server-side trading, risk, pricing, market-approval and audit records control over a local device display in the event of a discrepancy, subject to correction of demonstrable error. Screenshots may be submitted as supporting evidence but do not override server records by themselves.

A trader may request review of a technical-error or integrity decision through the support channel within five (5) business days of the decision notice unless a longer period is stated. The appeal will be reviewed by a human reviewer who was not the sole original decision-maker where reasonably practicable. L7 may require supporting information and may uphold, correct or reverse the decision in good faith. L7 will provide at least a high-level reason category unless prohibited by law, security, anti-fraud needs or confidential third-party obligations.

Questions about these Rules: