Nature of Services & Risk Disclosure

The L7 Select Evaluation is a paid simulated trading assessment. Evaluation balances and profits are not customer money and cannot be withdrawn. The fee purchases access to the assessment service and, if earned, a Trading Certificate.

A Verified Pass / L7 Select Trading Certificate confirms successful completion of the objective Evaluation and qualifies the trader to continue toward a funded account. Before funded access is activated, L7 may require KYC, a questionnaire, one or more trading interviews and qualitative review of trading history, risk management, repeatability, strategy characteristics, liquidity/scalability, provider constraints, capital availability and other bona fide considerations. These are Funding Requirements, not a second Evaluation. L7 may approve activation, approve it subject to conditions, defer activation or decline funding.

The 3% Daily Trailing Drawdown follows the highest Server Equity reached during each UTC Day and therefore can rise because of unrealized gains. A later retracement of more than 3% of Initial Balance from that day’s high causes a breach even if the account remains above Initial Balance. This is intentionally stricter than a start-of-day snapshot loss rule. Traders should use appropriate position sizing, stops, alerts and automation where appropriate.

To complete the Evaluation, both Actual Net Realized Profit and Qualification Progress must reach 10% of Initial Balance. No more than 2% of Initial Balance in positive Net Realized P&L can increase Qualification Progress during one UTC Day. Excess profit remains actual account profit but does not increase that day’s Qualification Progress.

Approved prediction markets can involve binary or discontinuous outcomes, rapid repricing, thin or one-sided liquidity, cancellation/void rules, disputed or delayed resolution and valuation differences. Open prediction positions affect Server Equity using L7 Reference Marks, but prediction profit counts as realized only when the position is closed or the market is finally resolved under the Approved Resolution Source. Market approval is not an endorsement of an outcome or probability.

L7 earns Evaluation fees regardless of whether an Evaluation passes. A trader who fails may buy another Evaluation. In a funded relationship, L7 may also have different economics depending on whether a trade instruction is recorded internally, mirrored, hedged or routed externally and may receive third-party rebates or incentives. These arrangements create potential conflicts of interest. L7 addresses them through disclosed objective Evaluation rules, versioning, human review of material integrity decisions, separation of Evaluation validity from later Funding Requirements/approval decisions, contractual payout calculations and reconsideration processes.

A funded offer may be a Notional Performance Account, Live Proprietary Account or hybrid. Displayed buying power is not property owned by the Trader. Any externally executed transaction is for L7 or the applicable capital provider’s own principal account. Trader’s economic right is limited to an approved contractual Performance Split under the Funded Trader Agreement.

Crypto and prediction markets can move rapidly and may experience gaps, liquidations, market halts, exchange/venue failures, oracle/data errors, blockchain congestion, resolution disputes and regulatory changes. Simulated results do not predict future results. The Evaluation’s strict risk limits can be breached by temporary intraday marks even where a position later recovers.

The Services do not provide personalized investment advice and the Evaluation fee is not an investment. In connection with the L7 evaluation-to-funding pipeline, L7 is not acting as the trader’s broker, investment adviser, futures commission merchant, custodian, fiduciary or money manager.