A soft breach is a rule violation that is typically handled through profit-related penalties rather than immediate account closure.
Examples may include:
Floating loss limit breaches (see The 1% Floating Loss Rule)
Restricted trading style violations categorized as soft-breach conduct
If a trade violates a soft-breach rule, the profit from that trade may be deducted from your total profit. If deductions are less than your profit, the reduced amount may still be eligible for payout. If deductions equal or exceed your profit, payout may be denied.