A soft breach is a warning: your account keeps trading. A hard breach closes the account. After a hard breach you can reset the same account or buy a new account. The only soft breach is the first hedge on an account. Inactivity is never a soft breach: it is always a hard breach.
The difference
| Soft breach | Hard breach |
What it is | A warning | The account is closed or deactivated |
Does the account keep trading? | Yes | No |
Example | Your first hedge on the account | Max loss limit exceeded, a second hedge, inactivity, copying other traders or group trading |
What you receive | A warning email | The reason on your dashboard |
What you can do next | Keep trading | Reset the same account or buy a new account |
Soft breach: the first hedge
You get a warning email.
The hedged positions are closed and their profit is removed (the profit of the whole position, from when it was opened). Losses stay.
The account keeps trading.
You get 1 soft breach in the Evaluation and 1 soft breach for the whole life of the SIM Funded Account. It does not come back after payouts.
Soft breaches are counted per account. A soft breach on one account does not use up the soft breach of your other accounts.
A reset does not give the soft breach back.
Example
You hold a long NQ and open a short MNQ at the same time.
👉 Soft breach: you get a warning, the hedged positions close, their profit is removed and your account keeps trading. If you do it again on the same account, it is a hard breach.
Hard breach
Reason | Dashboard message | Reset offer |
Equity touched the floor | Max loss limit exceeded | Yes, check the time left on your dashboard |
Second hedge on the same account | Hedging rule violated | Yes, check the time left on your dashboard |
No new trade in time (30 calendar days in the Evaluation, 7 trading days in SIM Funded). Always a hard breach | Deactivated (Inactivity) | Yes, check the time left on your dashboard |
Copying other traders or group trading | Check the reason on your dashboard | Yes, check the time left on your dashboard |
A hedge between two of your accounts
⚠️ Both accounts take the breach.
Each account receives its own soft breach: it is 1 soft breach per account.
If one of the two accounts had already used its soft breach, that account gets a hard breach, and the other account only gets its own soft breach.
What is never a breach
✅ Reaching the profit target
✅ The Consistency Rule or the Minimum Trade Duration not being met
✅ Auto close at 4:45 PM ET
✅ A BrightPlus balance below the buffer (payouts pause)
Frequently asked questions
Does a soft breach affect my payouts?
The hedged positions are closed and their profit is removed, which changes your balance. The account keeps trading.
Do I get another soft breach after a reset?
No. A reset does not give the soft breach back.
Does a soft breach on one account hurt my other accounts?
No, unless the hedge was between two accounts. Then both accounts take the breach, and each account receives its own soft breach (1 soft breach per account).
Can I reset after a hard breach?
Yes. After a hard breach you can reset the same account or buy a new account. You can reset a breached account whichever stage it was in. A reset always gives you a Challenge. You have a limited time to reset, so check the time left directly on your dashboard.
Is copy trading allowed?
Between your own accounts, yes. Copying other traders or group trading is a hard breach of the Terms and Conditions. Read Copy trading, bots and EAs: what is allowed?
Where to go next
Hedging and correlated instruments
Why was my account breached?
Inactivity rules