1. Purpose
KHOOD funds traders who demonstrate genuine trading skill and discipline. This policy defines prohibited practices, how they are detected, and the consequences of violations. The policy is an integral part of the Terms of Use and the Challenge Rules; by accepting them, you also accept this policy.
2. Principle
Any conduct aimed at obtaining a funded account or a payout other than through trading skill — by exploiting the evaluation structure, the platform’s technical features, or coordination between accounts/persons — is prohibited. The list below is not exhaustive: KHOOD assesses the substance of the conduct, not merely its formal label.
3. Prohibited Practices
3.1. Arbitrage and execution exploitation. Latency arbitrage, cross-provider quote arbitrage, tick scalping, high-frequency trading (HFT), exploitation of delays, slippage, and quote anomalies, trading on off-market quotes.
3.2. Coordination between accounts. Mirror and opposing positions on your own accounts or in collusion with others (hedging schemes — one account long, another short); copying trades between accounts; sending or receiving trading signals for synchronized trading; group passing of challenges.
3.3. Account transfer. Use of an account by a third party, transfer of credentials, “challenge passing for hire” services, managing someone else’s account, selling or buying evaluation accounts.
3.4. Multi-accounting. Creating multiple profiles by one person (including through relatives or nominees) to circumvent rules, limits, or sanctions.
3.5. Concealment of identity or location. VPN, proxies, IP masking, spoofing of device/browser fingerprint, providing false data during KYC.
3.6. Event exploitation. Strategies built solely on order execution at the moment of high-volatility news releases to exploit gaps and slippage. Systematic trading that coincides with news is permitted.
3.7. Abuse of terms. Exploitation of platform errors, bonus mechanics, the referral program, or repeated chargebacks after receiving services.
4. Detection
KHOOD applies automated and manual monitoring: analysis of trading patterns and execution, matching of positions between accounts, checks of IP addresses, devices, and behavioral signals, as well as data from the KYC provider. Checks may be carried out at any stage — during the evaluation, before a payout, and after it.
5. Investigation Procedure
- Where signs of a violation are detected, the account may be temporarily suspended and payouts frozen until the check is completed.
- The trader receives a notice describing the claim.
- The trader may provide explanations within 7 calendar days.
- A decision is made within 14 calendar days of receiving the explanations (or the expiry of the period) and is communicated to the trader.
6. Sanctions
Depending on the severity and intent:
- a warning;
- cancellation of the results of a phase or cycle;
- account deactivation without a refund of the challenge fee;
- refusal of a payout where the profit was obtained as a result of a violation;
- blocking of all related accounts and a ban on using the platform;
- referral to the competent authorities where there are signs of unlawful conduct.
7. Recovery of Unjustified Payouts
If a violation is discovered after a payout has been made, KHOOD reserves the right to demand the return of unjustifiably received funds — including the challenge fee refunded as part of a payout (Section 5 of the Refund Policy).
8. Final Provisions
KHOOD may update this policy; the current version is published on khood.capital. Decisions resulting from an investigation are made in accordance with the procedure in Section 5 — with notice to the Trader and the right to provide explanations. Questions: support@khood.capital.