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Soft Breach vs. Hard Breach

What is the difference between a soft breach and a hard breach?

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Written by Legion Funding

The risk-per-trade rule follows a graduated penalty system. The first and second violations are considered soft breaches; you will receive a warning, and the trade may be forcefully closed, but your account remains active.

The third violation is a hard breach, which results in permanent and irreversible

account closure. Note that daily drawdown and maximum drawdown violations are always immediate hard breaches with no warnings.

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