Annex A: Definitions

These definitions are part of the rules and are referenced above by their number. Nothing in this Annex adds an obligation that is not already stated in §1 to §10.

A · The account and its values

D.1 Account – a simulated trading account provided by Daycano on the Platform. No real orders are executed on any market and no client funds are held; all trading takes place in a simulated environment. Rewards are paid from the own funds of K&L Rock Simulations s.r.o., the company operating Daycano, based on results achieved in that environment.

D.2 Challenge – the evaluation stage of the product: either the two-Phase 2-Step challenge or the single-Phase 1-Step challenge.

D.3 Phase – one evaluation stage of the Challenge with its own profit target. Every Phase starts from the Initial Balance, and all limits and counters are calculated from scratch; nothing carries over from a previous Phase.

D.4 Funded Account – the Account issued within 48 hours of completing the last condition of the Challenge. It is likewise simulated; it differs from the Challenge only by the 60-second minimum hold time (D.25, D.26).

D.5 Initial Balance – the nominal size of the Account selected at purchase (5,000 / 10,000 / 25,000 / 50,000 / 100,000 USD). It is the base from which every percentage limit is converted into a fixed USD amount. Upon Scaling (D.30), the increased account size becomes the base and all limits are recalculated from it.

D.6 Balance – the realized value of the Account: the Initial Balance plus the sum of realized profits and losses of closed positions and of all Swap, Commission and other adjustments charged to or credited to the Account. Balance does not include Floating P/L.

D.7 Floating P/L – the unrealized profit or loss of all open positions, marked to the current prices displayed on the Platform, including any Swap and Commission already attributable to those positions.

D.8 Equity – Balance plus Floating P/L. Equity is the real-time value of the Account and the value on which both loss limits are evaluated continuously.

B · Time

D.9 Rollover – 23:00 Central European (Summer) Time, i.e. the Europe/Prague timezone. The Rollover is the boundary between two Days and the moment at which Swap is charged.

D.10 Day – the period between two consecutive Rollovers.

D.11 Executed Trade – a fill recorded by the Platform that opens, increases, reduces or closes a position. Placing, modifying or cancelling a pending order is not an Executed Trade.

D.12 Trading Day – a Day during which at least one Executed Trade occurs on the Account. Trading Days need not be consecutive. Used for the minimum of 5 Trading Days per Phase, and for the minimum per Payout Cycle – 5, or none with the 7-Day Payout Cycle add-on (§9).

D.13 Inactivity – 30 consecutive calendar days without a single Executed Trade on the Account. Inactivity closes the Account (§6); logging in without trading does not interrupt it.

C · Loss limits and breaches

D.14 Max Daily Loss – a fixed USD amount set when the Account is created: 4 % / 3 % of the Initial Balance (100k 2-Step = 4,000 USD). The daily loss is measured from the higher of Balance or Equity at the Rollover that opens the Day. The Max Daily Loss is breached at the first moment during the Day at which Equity is equal to or lower than that reference value minus the Max Daily Loss. The amount never changes during the life of the Account except upon Scaling; only the daily reference value moves.

D.15 Max Overall Loss – a fixed USD amount calculated once from the Initial Balance: 10 % / 6 % of the Initial Balance. The Max Overall Loss is breached at the first moment Equity is equal to or lower than the Initial Balance minus the Max Overall Loss – on a 100k 2-Step Account, Equity reaching 90,000 USD is a breach; Equity must at all times remain above 90,000 USD. It is static: it does not move with profit, does not trail, and is not affected by payouts. It is recalculated only upon Scaling, from the new account size.

D.16 Breach of a loss limit – the event described in D.14 or D.15. Both limits are evaluated continuously on Equity, including Floating P/L, Swap and Commission. Upon a breach the engine automatically closes all open positions. A breach of either loss limit is a Hard Breach. The Platform Records (D.34) are decisive as to whether and when a breach occurred.

D.17 Hard Breach – a violation that closes the Account. Consequences per §6: in the Challenge a new challenge may be purchased at the price then in force; on the Funded Account unpaid profit is forfeited and already processed payouts remain the trader's.

D.18 Soft Breach – a recorded violation that results in a written warning and no other consequence. The only Soft Breach is the first and second Tick Scalping violation (D.26).

D · Best-day rule

D.19 Day Profit – the net realized result of a Day: the sum of realized profits and losses of positions (or parts of positions) closed during that Day, plus all Swap and Commission charged during that Day, as recorded by the Platform.

D.20 Reference Period – the period over which the Best-Day Rule is measured. In the Challenge: each Phase separately, from the start of the Phase. On the Funded Account: from the last successful payout; for the first payout, from the day the Funded Account was issued. After every successful payout the Reference Period starts over.

D.21 Total Profit – the sum of Day Profits over the Reference Period.

D.22 Best Day – the Day within the Reference Period with the highest Day Profit.

D.23 Best-Day Score – score = (Best Day ÷ Total Profit) × 100
The score is evaluated only when Total Profit is positive.

D.24 Best-Day Rule – the requirement that the Best-Day Score be ≤ 40 %. In the Challenge, exceeding it never eliminates: the effective profit target of the Phase equals the greater of the base target and Best Day ÷ 0.40. On the Funded Account it is the gate to payout: while the score exceeds 40 %, a payout is postponed – nothing is deleted or forfeited – and the counter resets after every successful payout. It is never a reason to close an Account and it is the only consistency rule.

E · Funded account and payouts

D.25 Hold Time – the time between the Platform-recorded opening of a position and a given full or partial close of that position. A partial close inherits the position's original opening time.

D.26 Tick Scalping – on the Funded Account, any full or partial close of a position with a Hold Time of less than 60 seconds. Violations are counted per position: several sub-60-second closes of the same position constitute one violation. The first and second violations are Soft Breaches; the third violation is a Hard Breach and closes the Account. There is no minimum Hold Time in the Challenge.

D.27 Payout Cycle – the period after which a payout may be requested: at least 14 calendar days and at least 5 Trading Days, counted from the day the Funded Account was issued and, thereafter, from the last successful payout. A rejected or postponed request does not reset the cycle. With the 7-Day Payout Cycle add-on, purchased together with the Challenge: at least 7 calendar days, with no minimum of Trading Days, for the entire lifetime of the Account. Everything else in this definition is unchanged.

D.28 High-Water Mark – the Balance level above which profit is payable. It equals the Initial Balance, as recalculated upon Scaling. Upon every successful payout, the entire profit above the High-Water Mark is debited from the Account and the Balance is reset to the High-Water Mark; the trader receives the Profit Split share of the debited profit. The same profit is therefore never paid twice.

D.29 Profit Split – the trader's share of profit above the High-Water Mark: 80 %, or 95 % with the add-on purchased together with the Challenge, for the entire lifetime of the Account. The Profit Split does not apply to the refundable challenge fee, which is returned at 100 % with the first payout. The refund equals the price actually paid for the Challenge, after any discount; add-on surcharges (§9) are never refunded.

D.30 Scaling – a 10 % increase of the account size after +10 % profit on the Funded Account, with at least 2 months between increases (the first counted from issuance). All limits are recalculated from the new account size; the Profit Split does not change. Scaling is the only way above the 200,000 USD cap on concurrently funded capital.

F · Costs, platform and records

D.31 Swap – the overnight financing charge or credit applied to open positions at every Rollover, at triple the rate on Wednesday and Friday. Swap counts towards both loss limits and can cause a breach on its own.

D.32 Commission – 6 USD per lot round-turn, applied to all Instruments on top of the raw spread. Commission counts towards both loss limits.

D.33 Instrument – a simulated CFD-type instrument (FX pairs, indices, metals, energies, crypto) priced from market data. Symbols carrying a month/year suffix are CFDs with a scheduled expiry; they are not exchange-traded futures and confer no rights to any underlying.

D.34 Platform Records – the prices, timestamps and account values recorded by the Daycano trading platform. They are the binding reference point in any dispute, including the measurement of Hold Time, Day Profit and breaches.