When it comes to trading challenges, the game providers usually speaks alot about using bots and if any user is caught in the process he would be removed asap. There are many trading challenges organised by many big companies within the year but just few are heard off. And sometimes the once not heard of are actually the best and trusted once. Exchange like bybit runs such crypto challenges from time to time, it's a way to encourage new and experienced traders to test their skills and remain in the market for long. Long enough to master their craft. If you end up losing the challenge, you can try again another time.
Even if you end up losing the challenge, there is nothing much to loose until and unless you make the trades profitable. If you end up in losses during the trading competition than it might totally depend on your trading skills and lack of proper research.
These trading competitions are nothing but just rewarding for placing regular trades on specific pair. They really encourage new traders instead of experienced ones because new traders can not only profit by placing the trade but also by participating and winning the competition.
I don't think much of these platforms will worry about bot trading. Bot trading is okay as long as you are not breaking any rules. This is definitely not breaking of rules.
You still have your money involved and is used in active trades so the platforms will be okay if they have not specified about bot trading in their competition's rules.