Soft and Hard Breach Explained

During a withdrawal cycle, any rule violations resulting in a soft breach will lead to the forfeiture of profits from that cycle and the issuance of a reset account. If additional soft breaches occur, it will escalate to a hard breach, causing the account to be permanently disabled.

Examples:

• Scenario A: If a trade rule, such as the 2-minute minimum duration, is breached along with another rule, this constitutes two soft breaches. Consequently, the account will be permanently disabled.

• Scenario B: If only the 2-minute minimum duration rule is breached, profits will be forfeited, and a reset account will be issued. This reset account will carry a soft breach marker, meaning only one more soft breach is allowed before it escalates to a hard breach and the account is disabled.

In essence, a first soft breach results in profit forfeiture and a reset account with one soft breach marker. A second soft breach leads to a hard breach and permanent account disabling. While we understand that mistakes can happen, multiple rule breaches within a single payout cycle will result in a hard breach and cannot be reversed.

All checks are conducted by Risk and Compliance at the point of payout request. Any detected breaches will be communicated via email, and a reset account will be issued if necessary.