What happens when you breach a funded account?

A "breach" means you crossed a hard risk line and the firm shuts the account. Here's what triggers it, and what you can (and can't) do after.

The two things that trigger a breach

1) Trailing drawdown — your balance touches the trailing floor. This is the most common breach and it catches people while green, because the floor rose with their equity. 2) Daily loss limit — you lose more than the day's cap in a single session. Firms that have one (Topstep, Tradeify, Apex EOD) end your day when you hit it; firms without one leave the trailing floor as the only stop.

Hard vs soft breach

A hard breach fails the account outright. A soft breach — some firms treat the daily loss this way (e.g. Lucid) — just pauses your session for the day without killing the account. Know which one your firm uses, because the difference is your whole account.

Can you get back in? Resets

On an evaluation you can usually pay a reset fee and start the challenge over. On a funded account a breach typically means buying a new evaluation. Either way the fix is prevention — knowing your floor in dollars at all times so a normal losing streak can't reach it.

Risk-tracking tool, not financial advice, not affiliated with any prop firm. Verify rules against your firm's current terms.