Regarding the conditions proposed by Li Yao, after careful consideration, the Institute had finally agreed to let Li Yao use the Demon Beast Detector as well as give the necessary details of the 2,000 students participating the match.
The Thunderbolt Cup was carried out under the banner of actual combat. In the real world, if there was indeed such a dangerous spy, it would be absolutely impossible for him to know nothing about his opponents.
More importantly, the Institute also hoped that Li Yao could hold on for a long while and give some more trouble to the Iron Fist Club and Chaos Edge Hall. He could add some itsy-bitsy bit of variability to the tournament that had been repeated again and again over a few decades.
Maybe with these conveniences, Li Yao could hold on for...30 minutes?
And as for the fourth point, it was absolutely impossible to be honored completely.
[1]. A coordinated attempt, usually by the police, to catch a criminal.