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A ladder will start with all club members ranked according to their USCF rating. Unrated players will started at the bottom rung. The top ladder rung will have one player, the next rung will have two players, the next three players and so on.
Players move up and down the ladder by winning, losing or drawing games. Games are set up through challenges. A winning challenger takes the place of the player he defeated. That player moves down one spot, possibly bumping a lower player to the next rung down. If a challenger loses, there is no movement for either player. In the case of a draw, the lower rated player moves directly below the higher rated player.
Players may challenge any player on their rung or the rung imediately above them. Players cannot challenge the same player twice in a row (except players on the second rung, who have only one player above them). Challenges should be presented through the tournament director, who will serve as a clearing house for challenges.