TL;DR
For the “math rules” (drawdowns, 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 cases: Max floating loss, minimum holding time, news trading, weekend trading/holding rule breach
Instant Funding and Funded Accounts traders who breach the news trading or weekend holding rules:
- First violation → warning email & profit adjustment on the affected trades (if needed) + reduced profit split to 50% for the remaining life of the account.
- Second violation → hard breach of the account.
Instant Funding and Funded Accounts traders who breach the minimum holding time rule:
- First violation → warning email & profit adjustment on the affected trades (if needed).
- Second violation → hard breach of the account.
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.
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.
Related FAQs