Prize Matches VF4 and VF.net

I was wondering how prize matches are enabled, as in is it based on if the machine are connected to VF.net? or can the machine have its network "on" and yet still not be connected to vf.net. This would mean the machine itself determines which matches are "prize" matches instead of VF.net servers.

 

I'm fairly sure it must be connected to vf.net for prize matches.