> For the complete documentation index, see [llms.txt](https://hyperpnl.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hyperpnl.gitbook.io/docs/challenges-101/evaluation-rules.md).

# Evaluation Rules

These rules define what you need to pass each phase and what will cause a challenge failure.\
Your account is evaluated using both balance and equity. If either one breaches a limit, the challenge ends automatically.

* **Balance** is the value of your account after all closed trades.\
  It does not change while a trade is still open.
* **Equity** is the real-time value of your account.\
  It includes both your balance and the profit or loss from open positions.