Overview
All YRM Prop accounts operate under clearly defined risk controls designed to encourage disciplined trading while protecting account integrity.
There are two separate risk mechanisms used across account types:
Daily Loss Limit (Soft Breach) – temporarily restricts trading for the day
Max Trailing Drawdown (Hard Breach) – permanently closes the account if violated
Understanding the difference is critical.
Key Definitions
Daily Loss Limit (Soft Breach)
A per-day loss threshold
If exceeded:
Trading is disabled for the rest of the trading day
The account remains active
Applies only to:
Prime accounts
Instant Prime $50K–$150K
Max Trailing Drawdown (Hard Breach)
A hard equity floor
Trails end-of-day (EOD) balances upward
Stops trailing permanently once it reaches the starting balance
If live equity drops below this floor at any time, the account is:
Closed permanently
All remaining profits are forfeited
⚠️ The trailing drawdown never moves above the starting balance on Starter, Prime, or Instant Prime accounts.
Risk Rules by Account Type
Starter Challenge Accounts
Account Size | Daily Loss Limit | Max Trailing Drawdown |
$50K | None | $2,000 |
$100K | None | $3,000 |
$150K | None | $4,500 |
No daily loss limit
Any intraday drop below the trailing floor = hard breach
Prime Accounts
Account Size | Daily Loss Limit (Soft) | Max Trailing Drawdown (Hard) |
$50K | $2,000 | $2,000 |
$100K | $3,000 | $3,000 |
$150K | $4,500 | $4,500 |
Soft breach pauses trading for the day
Hard breach closes the account permanently
Instant Prime Accounts
Account Size | Daily Loss Limit (Soft) | Max Trailing Drawdown (Hard) |
$25K | None | $1,250 |
$50K | $1,500 | $2,000 |
$100K | $3,000 | $4,000 |
$150K | $4,500 | $6,000 |
$25K tier has no daily loss limit
$50K+ tiers include a soft daily loss limit
Hard breach rules apply equally across all tiers
How Enforcement Works (EOD vs Intraday)
Trailing drawdown updates at end of day only
Hard breach is enforced intraday
Daily loss limit is enforced intraday
Once the drawdown floor reaches the starting balance:
It locks permanently
It never moves higher
Clear Examples
Example 1: Starter $50K (No Daily Loss Limit)
Max drawdown: $2,000 → floor starts at $48,000
Day 1 EOD: $51,000 → floor moves to $49,000
Day 2 EOD: $52,000 → floor locks at $50,000
Day 3 intraday equity hits $49,950 → Hard Breach
✔️ Floor never exceeded $50,000
❌ Account closed immediately
Example 2: Prime $100K (Soft ≠ Hard)
Daily loss limit: $3,000 (soft)
Max drawdown: $3,000 → initial floor $97,000
Day 1
Intraday loss reaches $3,100
→ Soft breach
Trading disabled for the day
Account remains active
Hard breach only occurs if equity drops below $97,000
Example 3: Instant Prime $50K (Soft → Hard)
Daily loss limit: $1,500
Max drawdown: $2,000 → floor $48,000
Day 1
Loss of $1,500 → soft breach
Trading locked
EOD balance $48,500
Day 2
Intraday loss of $550
Equity hits $47,950
→ Hard breach
Account closed permanently
Example 4: Drawdown Lock at Start
$50K account
Day 1 EOD: $51,000 → floor $49,000
Day 2 EOD: $52,000 → floor locks at $50,000
Any future dip below $50,000 = hard breach, even months later.
Soft vs Hard Breach Summary
Type | Trigger | Result |
Soft Breach | Intraday loss exceeds daily limit | Trading paused for the day |
Hard Breach | Equity falls below trailing floor | Account closed permanently |
Payout Impact Clarification
Soft breaches alone do NOT deny payouts
Payout eligibility depends on:
Qualifying trading days
$150 minimum profit per day
Consistency rules
No hard breach
Only a hard breach disqualifies the account entirely.