A soft breach is a rule violation that may occur during the Funded Stage of your challenge. Unlike a hard breach, a soft breach does not result in immediate account closure. However, it does require corrective action from the trader.
Below are the situations that may be classified as a soft breach:
1. Scalping Rule Violation
A soft breach may occur if trades are opened and closed below the minimum holding time:
Under 3 minutes (standard rule), or
Under 30 seconds (if you have purchased the Scalping Add-On)
This applies to both winning and losing trades, provided the total volume does not reach the prohibited threshold outlined in the Trading Objectives.
For more details, please refer to:
Minimum Holding Time for Trades
https://faq.fundedelite.com/en/articles/12675184-minimum-holding-time-for-the-trades
2. IP Address Flags (Non-Malicious)
An account may receive an IP flag due to:
Accidental VPN or VPS usage
IP variations caused by software or connection changes
Other non-malicious technical factors
If the IP activity is not linked to prohibited practices such as:
IP sharing
Group trading
Account management
Hedging services
the account will not be closed.
More information:
IP Sharing
https://faq.fundedelite.com/en/articles/12681903-ip-sharing
VPN / VPS Usage & IP Variations
https://faq.fundedelite.com/en/articles/12681871-vpn-vps-usage-ip-variations
3. Hedging Flags
A hedging flag may be triggered when:
Trades are opened and closed within the same seconds as another trader’s positions.
If no direct linkage or coordinated trading activity is identified, the account will remain active but may be placed under monitoring.
Learn more:
Hedging Policy
https://faq.fundedelite.com/en/articles/12682040-hedging
What Happens in Case of a Soft Breach?
If a soft breach occurs:
The account will not be closed.
The payout will still be processed, but with a 30% profit split.
The trader will be formally notified and asked to adjust their trading behavior to comply with the rules.
The payout cycle will be reset.
Example: You have received two payouts, and on what would have been your third payout you incur a soft breach. This means you will not receive the fee refund, and your payout cycle restarts from the first payout. You will then need to complete three additional payouts without any violations to become eligible for the refund.
Repeated Violations
If soft breaches continue after notification:
The account may be reset, and
Any accumulated profits may be forfeited.
We encourage all traders to review the rules carefully and ensure full compliance to maintain a smooth and uninterrupted trading experience.