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What Happens If I Violate a Trading Rule

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Written by Lucas Vanhaeren
Updated over a month ago

At Xpert Funding, all traders are expected to operate within clearly defined risk management rules and trading objectives. These rules exist to protect traders, maintain fairness, and ensure consistency across all evaluation and funded accounts.


A breach occurs when any of these key parameters are broken such as the Daily Drawdown, Maximum Drawdown, or Margin Use Rule. When this happens, the account is automatically flagged and trading access is restricted.



What Happens When a Breach Occurs

Once a rule violation is detected, the following automated actions take place immediately:

  • open positions are closed at the current market price.

  • Any pending or limit orders are canceled.

  • The account is placed in “view-only” mode, meaning no further trades can be executed.

  • The breach is logged in your Xpert Funding Dashboard, including the exact rule broken, timestamp, and breach type for complete transparency.

  • You will also receive an email notification explaining the reason for the breach and confirming the status of your account.

💡 Example: If your equity drops below the allowed Daily Drawdown or Max Drawdown level, your account is automatically breached — even if you later close trades in profit.



What Happens to Your Profits

Once a breach occurs, the account immediately becomes ineligible for payouts or rewards, regardless of prior profitability.

This includes breaches caused by:

  • Daily Drawdown violations

  • Maximum Drawdown breaches

  • Over-leveraging or margin abuse

Any simulated profits accumulated before the breach are voided, and the account is permanently deactivated. This ensures a consistent and transparent enforcement of Xpert Funding’s rules across all traders.



How to Check Which Rule Was Breached

If your account has been breached, you will automatically receive an email notification from Xpert Funding explaining the exact reason.

  • The specific rule that was violated (e.g., Daily Drawdown, Max Drawdown, Margin Use, etc.)

  • The exact timestamp of when the breach occurred

  • The current account status and next steps

💡 Tip: Always check your inbox and spam folder for your breach notification. If you haven’t received the email within one hour of the incident, contact Xpert Support so our team can resend the details.

This transparency allows traders to review their mistakes and improve for the next evaluation.

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