Term
Drawdown
How far the bankroll has fallen from its peak — the rule that ends Challenges.
Definition
Drawdown is the percentage drop from the all-time-high bankroll value to the current value. Crypto Bet Capital enforces two drawdown rules: a 12% maximum (relative to starting bankroll, lifetime of the evaluation) and a 7% daily limit (resets at 00:00 UTC). Breaching either ends the Challenge immediately.
Example
Starting bankroll $25,000. Bankroll peaks at $27,500 then dips to $23,500. Max drawdown is ($27,500 − $23,500) / $27,500 = 14.5%. If the rule is 12% from start, the limit is $22,000 — still above. But if it kept dropping to $21,500, the Challenge fails.
Why it matters
Drawdown rules force position sizing discipline. They are why Kelly fractional staking is taught alongside the platform — over-leveraged +EV strategies still fail evaluations.
Related terms
Kelly Criterion
A formula that prescribes the bet size which maximises logarithmic bankroll growth given a quantified edge and odds.
Variance
The dispersion of bet outcomes around their expected value — high variance means results swing wildly even when long-run +EV holds.
Bettor Score
A 0–100 composite metric measuring betting skill across five weighted components — ROI, CLV, volume, variance control, and edge factor.
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