Definition
Hard breach vs soft breach
Hard breach = account terminated (drawdown limits). Soft breach = trades closed or payout affected, account survives.
Some firms distinguish violations: exceeding max drawdown is always hard; holding through a restricted news window or over a weekend might be 'soft' — positions force-closed, profits from the trade voided, account intact.
Never assume a violation is soft: the same act (say, weekend holding) is a warning at one firm and a termination at the next. The decoded rulebook per firm is the source of truth.
Related terms
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.