Near-Breach Detection
Near-breach detection is FairTicks' real-time account-risk warning system. It helps show when live equity is approaching one of the hard-risk boundaries enabled on the selected account, before the boundary itself is reached.
Near-breach is about visibility before failure. It does not change the account's risk limits and it does not replace the hard-risk engine. It shows how close the account is to an enabled risk boundary while there may still be time to reduce exposure.
What is a near-breach?
A near-breach state means that an account has consumed a meaningful portion of the available buffer for one of its enabled hard-risk rules, without yet reaching the official breach condition.
Depending on the account snapshot, FairTicks can monitor:
- Daily Loss, where enabled.
- Maximum Loss, where enabled.
- Intraday Trailing Drawdown, where enabled.
A risk rule that is disabled on the selected account is not used to determine that account's near-breach state.
Worst active level wins
More than one risk rule can be evaluated at the same time.
When several enabled rules have different near-breach levels, FairTicks uses the most severe active level as the account-level risk state.
Daily Loss: Warning
Maximum Loss: Critical
Account near-breach state: Critical
The FairTicks risk levels
The current FairTicks near-breach framework uses four pre-breach states.
| Level | Risk consumption | Meaning |
|---|---|---|
| Safe | Below 60% | The rule has not entered a near-breach warning zone. |
| Warning | 60% to below 75% | A meaningful portion of the available risk buffer has been consumed. |
| High | 75% to below 85% | The account is significantly closer to an active risk boundary. |
| Critical | 85% or more before breach | The account is very close to an enabled hard-risk boundary. |
| Breach | Hard-risk condition reached | The relevant official breach floor or condition has been reached or crossed. |
Critical means the account is very close to a hard-risk boundary. The account becomes breached only when the applicable hard-risk condition itself is reached.
What does “consumed” mean?
Risk consumption represents how much of the currently available risk buffer has already been used.
A higher percentage means less room remains before reaching the relevant breach boundary.
Available risk buffer: $1,000
Risk already consumed: $700
Consumption: 70%
Result: Warning
The percentage is a risk-visibility representation. The actual breach decision is determined by the applicable risk rule and its official account state, not by the visual percentage alone.
How Daily Loss near-breach works
When Daily Loss is enabled, FairTicks compares live equity with the current day's applicable Daily Loss boundary.
Because live equity includes open PnL, unrealized losses can move the account into Warning, High, Critical, or eventually a hard breach.
Classic 50K example
Daily reference equity: $50,000
Current standard Classic 50K Daily Loss limit: $1,250
Illustrative current Daily Loss floor: $48,750
Live equity: $49,250
Current loss from reference: $750
Consumption: $750 ÷ $1,250 = 60%
Result: Warning
The example above illustrates the basic consumption concept. Current Classic and Discipline Daily Loss also use their applicable Profit Room behavior, so the active floor shown by FairTicks remains the account-level reference.
Current Daily Loss Profit Room
| Family | Daily Loss | Current Profit Room |
|---|---|---|
| Rapid | Disabled | Not applicable |
| Classic | Enabled | 10% |
| Discipline | Enabled | 25% |
| Instinct | Disabled | Not applicable |
How Maximum Loss near-breach works
Maximum Loss near-breach measures how close live equity is to the current Maximum Loss floor.
Because the Maximum Loss floor can rise through the EOD progression model, always use the current active floor, not only the original Maximum Loss amount.
Current Maximum Loss floor: $47,500
Current standard Classic 50K Maximum Loss distance: $2,500
Live equity: $48,125
Remaining room: $48,125 − $47,500 = $625
Consumed amount: $2,500 − $625 = $1,875
Consumption: $1,875 ÷ $2,500 = 75%
Result: High
How Intraday Trailing Drawdown near-breach works
Instinct does not use the traditional EOD Maximum Loss rule. Its account-level hard-risk boundary is the Intraday Trailing Drawdown.
Near-breach therefore compares current live equity with the current trailing floor.
| Instinct 50K setting | Current standard value |
|---|---|
| Starting simulated capital | $50,000 |
| Trailing Drawdown distance | $2,000 |
| Follow rate | 80% |
| Persistent high-water mark | Enabled |
| Floor cap | Starting balance |
| Breach confirmation buffer | 15 seconds |
Current trailing distance reference: $2,000
Current trailing floor: $49,500
Live equity: $49,800
Remaining room: $300
Illustrative consumption: $1,700 ÷ $2,000 = 85%
Result: Critical
The current trailing floor can change as the Instinct high-water-mark logic progresses. Always use the live value shown by FairTicks rather than reconstructing it from an older example.
Near-breach uses enabled rules only
| Current standard family | Near-breach risk rules |
|---|---|
| Rapid | Maximum Loss |
| Classic | Daily Loss + Maximum Loss |
| Discipline | Daily Loss + Maximum Loss |
| Instinct | Intraday Trailing Drawdown |
| Qualified Account | The enabled risk rules recorded for that specific Qualified Account |
The family table describes the current standard structure. The selected account's snapshot determines which rules are actually active for that account.
What happens at each level?
Safe — below 60%
The account has not entered a near-breach warning band. Hard-risk monitoring remains active.
Warning — 60% to below 75%
Warning is the first elevated risk state.
- A warning can appear in the platform.
- The account is not breached.
- Normal trading remains available if no separate account block applies.
- The trader should review remaining risk room before adding more exposure.
High — 75% to below 85%
High means the account has consumed most of the monitored risk buffer.
- The warning becomes more urgent.
- A relatively small adverse move can push the account toward Critical or breach.
- Normal trading remains available unless another protection or account block applies.
Critical — 85% or more before breach
Critical is the strongest pre-breach state.
Under the current FairTicks protection behavior, entering the Critical zone can trigger the 10-minute Protection Pause.
The purpose of Critical is to warn and protect before the official hard-risk boundary is reached. The actual hard-risk rule remains fully active.
Protection Pause
When the Protection Pause is triggered,
FairTicks can temporarily place the account into
COOLDOWN.
The current standard pause lasts 10 minutes.
The pause temporarily restricts new exposure. It does not replenish Daily Loss, lower Maximum Loss, reset Trailing Drawdown, restore balance, or erase trading losses.
What is blocked during Protection Pause?
| Action | During Protection Pause |
|---|---|
| Open a new position | Blocked |
| Add new exposure | Blocked |
| Reverse into new exposure | Blocked while the account cannot open new exposure |
| Close an existing position | Allowed |
| Reduce exposure | Allowed where supported by the position action |
| Review dashboard and risk metrics | Allowed |
When the 10-minute pause ends, the account does not receive a fresh risk buffer. Review live equity and all active floors again before opening new exposure.
Does Warning or High stop trading?
No. Warning and High are primarily visibility states.
| State | Standard effect on new exposure |
|---|---|
| Safe | No near-breach restriction. |
| Warning | No near-breach trading block by itself. |
| High | No near-breach trading block by itself. |
| Critical / Protection Pause | New exposure can be temporarily blocked for the 10-minute protection period. |
| Breach | Account enters the official breach lifecycle. |
Near-breach can improve again
A near-breach state is not permanent.
If live equity improves and the account moves farther away from the active risk boundary, the risk-consumption percentage can fall into a lower band.
Current Daily Loss consumption: 72%
Current level: Warning
Live equity improves.
New consumption: 55%
New level: Safe
Near-breach can recover to a safer state. Once a valid hard breach has already been triggered, a later market recovery does not undo that breach.
Daily reset behavior
Daily Loss is tied to the current trading day's baseline and applicable Profit Room logic.
At the FairTicks daily reset, the next day's Daily Loss state is established using the new daily baseline.
This can change the Daily Loss near-breach state.
Daily Loss uses a daily lifecycle. Maximum Loss preserves its protected EOD floor, and Instinct Trailing Drawdown preserves its high-water-mark framework according to the account rules.
What if Protection Pause crosses the daily reset?
If a cooldown period spans the FairTicks daily reset, the Daily Loss state can be updated for the new trading day before normal trading resumes.
A daily reset does not erase realized losses, restore account balance, lower the Maximum Loss floor, reset Instinct's persistent high-water mark, or refund commissions.
What the trader can see
Near-breach information can be surfaced across FairTicks risk and account interfaces.
Risk Monitor
Daily Loss: 72% consumed — Warning
Maximum Loss: 42% consumed — Safe
Overall account level: Warning
Trading interface
The platform can surface stronger visual risk indicators as the account moves through Warning, High, and Critical.
Account status
When Protection Pause is active,
the account can temporarily show
COOLDOWN.
Notifications and timeline
Risk events can also be recorded or surfaced through account notifications and timeline history where supported.
Near-breach vs breach
| State | Meaning | Lifecycle effect |
|---|---|---|
| Near-breach | The account is approaching an enabled hard-risk boundary. | Warning or protection behavior can occur, but the account is not yet breached. |
| Breach | The applicable official hard-risk condition has been reached. | FairTicks processes the account through the breach lifecycle. |
Example — Critical becomes breach
Current Daily Loss floor: $48,750
Live equity approaches the floor and reaches the Critical consumption band.
The account is still not breached.
Live equity later reaches: $48,750
live equity ≤ Daily Loss floor
Result: the hard Daily Loss breach condition is reached.
Near-breach warnings and Protection Pause do not make the hard-risk floor inactive. If the account reaches the official breach condition, the breach lifecycle can still be triggered.
Common mistakes to avoid
| Mistake | Correct understanding |
|---|---|
| Thinking Warning means the account failed | Warning is a pre-breach risk state. |
| Thinking Critical means breach already happened | Critical means very close to breach, not breached yet. |
| Ignoring Critical because the account is technically still active | A small adverse move can reach the hard-risk boundary. |
| Looking only at Daily Loss | Maximum Loss or Trailing Drawdown can be the more restrictive active rule. |
| Thinking Rapid has Daily Loss near-breach | Current standard Rapid Daily Loss is disabled. Rapid near-breach focuses on Maximum Loss. |
| Thinking Instinct has Maximum Loss near-breach | Current standard Instinct uses Intraday Trailing Drawdown instead. |
| Using $2,500 for Instinct Trailing Drawdown | Current standard Instinct 50K uses $2,000. |
| Assuming Instinct follows 75% of gains | Current standard Instinct follow rate is 80%. |
| Thinking Protection Pause resets risk | The pause temporarily blocks new exposure; existing risk state remains. |
| Treating the visual percentage as more authoritative than the actual account floor | The official risk rule and live account state determine the breach. |
Common questions
Is near-breach the same as breach?
No. Near-breach is a warning state before the hard-risk boundary. Breach means the applicable official risk condition has actually been reached.
What are the current near-breach levels?
Safe is below 60%. Warning is 60% to below 75%. High is 75% to below 85%. Critical begins at 85% while the account remains above the actual hard-risk boundary.
Which rules can create near-breach?
Daily Loss, Maximum Loss, and Intraday Trailing Drawdown can contribute when they are enabled on the account.
Does Rapid use Daily Loss near-breach?
No. Current standard Rapid has Daily Loss disabled. Its relevant account-level near-breach rule is Maximum Loss.
What does Classic monitor?
Current standard Classic monitors Daily Loss and Maximum Loss.
What does Discipline monitor?
Current standard Discipline monitors Daily Loss and Maximum Loss.
What does Instinct monitor?
Current standard Instinct monitors Intraday Trailing Drawdown.
Can Warning stop trading?
Not by itself. Warning is a visibility state.
Can High stop trading?
Not by itself under the current near-breach framework. It is a stronger warning that the account is approaching Critical.
What happens at Critical?
The account is in the highest pre-breach risk band. The current standard protection behavior can trigger a 10-minute Protection Pause that temporarily blocks new exposure.
Can I close positions during Protection Pause?
Yes. Risk-reducing actions such as closing existing exposure remain available according to the platform controls.
Does Protection Pause reset Daily Loss?
No. It does not reset the account's current risk consumption.
Does Protection Pause lower Maximum Loss?
No. The Maximum Loss floor remains unchanged unless its normal EOD progression logic changes it.
Does Protection Pause reset Instinct Trailing Drawdown?
No. The Instinct trailing state remains subject to its persistent high-water-mark logic.
Why did my warning disappear?
Live equity may have improved enough to move the account below the applicable threshold, or a Daily Loss state may have been recalculated for a new trading day.
Why is my overall state High if Daily Loss is Safe?
Another enabled risk rule can be closer to breach. FairTicks uses the most severe active near-breach state.
Does a later market recovery undo a breach?
No. Near-breach can improve while no breach has occurred. Once a valid hard breach has been triggered, later market movement does not retroactively reverse it.
Summary
FairTicks near-breach detection makes account risk visible before the relevant hard-risk floor is reached.
Current risk bands are:
- Safe: below 60%.
- Warning: 60% to below 75%.
- High: 75% to below 85%.
- Critical: 85% or more before actual breach.
Current standard family mapping is: Rapid → Maximum Loss; Classic → Daily Loss + Maximum Loss; Discipline → Daily Loss + Maximum Loss; Instinct → Intraday Trailing Drawdown.
At Critical, the current FairTicks protection behavior can trigger a 10-minute Protection Pause while the underlying hard-risk rule remains active.
Near-breach tells you how close the account is to an enabled hard-risk boundary; it warns and can temporarily restrict new exposure, but it never replaces or resets the actual risk rule.
FairTicks shows account risk before it becomes a breach.
Watch the most restrictive enabled rule, use the live account floor rather than old generic examples, and treat Critical as an immediate warning that very little risk room remains.
Near-breach state not matching your expectation?
Check the selected account's enabled risk rules, live equity, active Daily Loss floor, Maximum Loss floor, or Trailing Drawdown floor, remaining buffer, current Protection Pause state, and account timeline. If something still appears incorrect, contact FairTicks Support with your account number and relevant screenshots.