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Definition

Breach

Violating a hard account rule — most often a drawdown limit — which ends the evaluation or funded account.

A breach is terminal: evaluation accounts are failed, funded accounts closed (pending any final payout the terms allow). Soft-rule violations (e.g. a consistency cap) more often delay payouts than kill accounts, but severities differ per firm.

Most breaches are mechanical, not strategic — an oversized position meeting a normal loss. Position sizing against the daily limit prevents nearly all of them.

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General industry definitions — individual firms define terms differently in their own ToS; the decoded rulebook for each firm is the source of truth. Educational, not financial advice.