A hard breach ends the account. A soft breach keeps the account open but has consequences and needs you to correct your trading.
Hard breach (account closed) | Soft breach (account stays open) |
Touching the daily or max loss limit | Isolated trades under the minimum holding time, scalp profit under the limit |
Risking more than 50% of your daily loss limit on one instrument in a day (funded): account closed, you can reset it |
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Fraud, KYC fraud or chargebacks | IP flags with an honest explanation (ISP, VPN or travel not reported, copy-trading tool) |
Group trading or IP sharing between several people | Hedging flags with no link to another trader found |
Account management, passing services | A first case of gambling-style trading |
Scalp profit above the scalp limit (evaluation) |
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Repeated soft breaches after a warning |
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In evaluation, a hard breach on 1-Step or 2-Step + Free Retry triggers your free retry automatically, unless the cause is fraud.