A hard breach is more serious than a soft breach and results in the immediate termination of the account. Hard breaches occur when traders violate critical rules, such as exceeding the daily drawdown of 4% or the total drawdown of 10%. If a hard breach occurs during the evaluation, the account is closed, and you will need to start over by purchasing a new challenge. In a funded account, a hard breach results in the closure of the account, and any profits are forfeited.

Hard breaches are designed to enforce strict risk management and ensure that traders do not take excessive risks. To avoid a hard breach, it’s crucial to stay within the daily and total drawdown limits and use proper risk management techniques such as stop-loss orders, position sizing, and leverage control.