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What happens if I breach a risk rule?

Consequences of breaching a hard risk limit.

Breaching a hard risk limit — such as exceeding the Maximum Drawdown or Maximum Daily Loss — results in immediate account termination. There is no grace period, no warning, and the challenge fee is not refunded for that account.

This applies specifically to numeric risk-limit breaches (drawdown, daily loss, prohibited strategies, and similar). Softer, non-numeric issues — like a one-time operational mistake or a minor rule misunderstanding — are handled separately through the warning system described in section 11 below.

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