There are two challenges:
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Live Coding, during interview, you'll be given time limit, around 2 hours. During which you'll demostrate your coding abilities by finishing the incomplete project. Don't worry, you can take the test off-screen. Once the time is up, we'll review your code about 1 hour, and then we'll continue our interview and you'll have to explain how you completed given tasks.
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Take Home, you can take this off-screen and finish the assignment within given days, typically 1-3 days depending on your experience.