On a funded account:
The account is not closed and you are notified by email.
Your current payout is still processed, but at a 30% reward share.
Your payout cycle restarts from payout 1, which also restarts the count for the fee refund.
If it happens again after the warning, the account can be reset and its profit forfeited.
Example: you have received two payouts. On what would be your third, a soft breach is found. That payout is paid at 30%, you do not get the fee refund, and you need three more clean payouts to earn it.
In evaluation, the team may reset your account, using your free retry if you still have it.