Reference articles
Reference and definitions for trading-tournament terminology — ROI, drawdown rules, KYC tiers, profit splits, lock-up periods.
Drawdown rules in trading tournaments — daily, total, trailing, explained
A drawdown limit is the maximum loss a tournament will tolerate before disqualifying you. Daily, total, and trailing drawdown each work differently — confusing one for another is the most common reason traders fail evaluations they could otherwise have passed.
KYC tiers in trading tournaments — what each level requires
Most platforms operate tiered KYC, with higher prize amounts requiring deeper verification. Tier 1 is usually email + ID; Tier 2 adds proof of address and source of funds; Tier 3 adds enhanced due diligence. Knowing which tier a tournament's payout requires is the difference between collecting and losing the prize.
Lock-up periods on tournament prizes — what they mean
A lock-up period requires the trader to keep the prize on the platform for a specified time before withdrawal. Some are days, some are months. Knowing the lock period changes the real value of the prize and whether it's worth optimizing for.
Profit split in prop-firm evaluations — what 80%, 90%, scaling actually mean
A 90% profit split sounds great until you read what fraction of profits actually qualify, what the scaling tier requires, and how the firm's withdrawal cycle interacts with what you keep. Here's what the major prop firms actually pay and what to verify before signing.
Settlement currency — what your tournament prize is actually paid in
A "$50,000 prize pool" doesn't always mean the winner receives $50,000 in dollars. Settlement currency — USDT, BTC, ETH, native platform token, fiat — determines what the prize actually delivers and how much value-decay sits between announcement and withdrawal.
Volume multiplier requirements on tournament prizes
Many CEX tournament prizes carry a volume-multiplier withdrawal requirement — your $10,000 prize is locked until you trade $50,000 (5×) of additional volume on the platform. Understanding the multiplier converts an apparent prize into its real expected value.