Hard vs soft breach: do warnings exist?

Program Instant Funding One Phase Two Phase
Severity Critical

TL;DR

For the “math rules” (drawdowns, restricted windows, forbidden practices), PropXP treats breaks as hard breaches.

Warnings exist only in review-based situations (pattern abuse / malicious behavior), but you should never plan around getting one.

How it works

  • Hard breach = you crossed a defined line, account fails/gets terminated (or reward gets denied/cut), immediately.
  • Review-based actions = you didn’t necessarily trip a single numeric rule, but your behavior triggers a risk/compliance review (e.g. abusive gap behavior, coordinated patterns). That can lead to warning, denial, or termination.

Special case: Max floating loss rule breach on Instant Funding

Instant Funding accounts have a special max floating loss rule. When you breach it the first time, you will be “soft breached”: All your open positions will be flattened and your profit split will be permanently reduced to 50%.

If you breach the max floating loss rule a second time, your account will be breached.

The max floating loss rule applied only to Instant Funding accounts.

Special case: 2-minute minimum holding time (Funded + Instant Funding)

For Instant Funding Program accounts and Funded Accounts only, each position must remain open for at least 2 minutes before it may be closed or reduced by you (including EAs/bots).

This is enforced based on behavior and patterns, so outcomes can vary:

  • Isolated, clearly accidental, or obvious risk-management early closes may be treated differently (including a warning).
  • Repeated/systematic closes under 2 minutes (or attempts to circumvent intent) can trigger review and may result in trade exclusions/adjustments, restrictions, reward denial, and/or account breach/termination.

Common gotchas

  • Micro-breach = breach. $0.01 over is still over.
  • Equity-based rules don’t care that you “came back” 5 seconds later.
  • “Dashboard didn’t update yet” is not a defense (dash is a display, the market is reality).
  • If you’re trading close to limits, you’re basically choosing a breach.

Example

You’re down -2.9% on a 3% daily limit, spread widens and equity prints -3.01% = hard breach. “But it recovered” is a bedtime story.

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