our instructor has a similar thing, except his is about if you use your martial arts to initiate fights... If he finds out that you have been fighting people because of your martial arts (not in self defence, but just picking fights) he will instantly bring you back to white belt, you can do that or quit... It happened to two of the Brown belts... barely a week from their blackbelt test they were demoted back to white... they left the dojo, but i heard the might be coming back (after being gone for about 7 or 8 years)