Violations & Breaches
A FairTicks breach is a confirmed hard-risk event.
When an account satisfies the breach condition of one of its active
hard risk rules, it can move to
BREACHED,
open positions are handled through the official breach process,
and new trading is disabled.
Breaches are rule-based account events. FairTicks separates hard breaches from warnings, payout conditions, Consistency requirements, and pre-trade validations so traders can understand exactly what happened.
Breach in one sentence
Daily Loss and Maximum Loss can breach when live equity reaches or falls below their active floors. Instinct Trailing Drawdown uses a different confirmation rule: live equity must remain strictly below the active trailing floor for the configured 15-second buffer.
Breach vs near-breach vs rejected trade
| Event | What it means | Account breached? |
|---|---|---|
| Near-breach | The account is approaching an active hard-risk limit. | No |
| Pre-trade rejection | A proposed order failed an entry validation before new exposure opened. | No |
| Payout condition incomplete | QPD, Consistency, age, KYC, profit, reserve, or another payout requirement is incomplete. | No |
| Hard breach | An active account-level hard-risk condition has been confirmed. | Yes |
Consistency, Qualified Profit Days, Discipline Score, KYC, payout wallet, payout reserve, and payout eligibility are not hard-risk breach rules by themselves.
Main current hard breach frameworks
| Rule | Current standard families | Core breach behavior |
|---|---|---|
| Daily Loss | Classic and Discipline | Breach when live equity reaches or falls below the active Daily Loss floor. |
| Maximum Loss | Rapid, Classic, and Discipline | Breach when live equity reaches or falls below the current Maximum Loss floor. |
| Intraday Trailing Drawdown | Instinct | Confirmed when live equity remains strictly below the active trailing floor for the configured 15-second buffer. |
Current account-family mapping
| Family | Daily Loss | Maximum Loss | Trailing Drawdown |
|---|---|---|---|
| Rapid | Disabled | Enabled | Disabled |
| Classic | Enabled | Enabled | Disabled |
| Discipline | Enabled | Enabled | Disabled |
| Instinct | Disabled | Disabled | Enabled |
Always follow the active rules stored on the selected account. Generated Qualified Accounts use their own rule snapshot.
Daily Loss breach
Daily Loss protects the current trading day. It uses live equity, so both realized and unrealized trading performance can move the account toward the active daily floor.
Current standard Classic and Discipline accounts both use the Fixed Floor Profit Room model, but they do not use the same Profit Room percentage.
| Family | Daily Loss | Profit Room |
|---|---|---|
| Classic | Enabled | 10% |
| Discipline | Enabled | 25% |
Daily Loss breach condition
live equity ≤ active Daily Loss floor
How Profit Room works conceptually
As positive same-day performance develops, part of that profit can remain available as Profit Room while the remaining portion becomes protected by a higher Daily Loss floor.
positive daily profit
= max(0, current daily performance)
allowed Profit Room
= positive daily profit × family Profit Room %
protected profit
= positive daily profit − allowed Profit Room
active Daily Loss floor
= daily base floor + protected profit
Do not use a universal 25% Profit Room. Current standard Classic uses 10%, while Discipline uses 25%.
Daily Loss example
Daily start equity: $50,000
Daily Loss limit: $1,250
Initial daily floor: $48,750
If live equity reaches $48,750 before any Profit Room adjustment changes the active floor, Daily Loss is breached.
Open losses matter because breach detection uses live equity, not only closed balance.
See Daily Loss Limit for the full Daily Loss model.
Maximum Loss breach
Maximum Loss protects the account across its broader lifecycle.
On current standard Rapid, Classic, and Discipline accounts, the Maximum Loss floor:
- starts below starting capital;
- can move upward through the EOD progression model;
- does not move downward after it rises; and
- can cap at starting capital.
live equity ≤ current Maximum Loss floor
Current Maximum Loss floor: $48,000
Live equity: $47,950
$47,950 ≤ $48,000
Result: Maximum Loss breach.
Do not rely only on the account's initial Maximum Loss floor. The active floor can move upward after qualifying realized EOD progress.
See Maximum Loss & EOD Floor for the full Maximum Loss model.
Instinct Trailing Drawdown breach
Current standard Instinct uses Intraday Trailing Drawdown instead of Daily Loss and traditional Maximum Loss.
On current standard Instinct 50K:
- starting simulated capital is $50,000;
- Trailing Drawdown is $2,000;
- initial trailing floor is $48,000;
- follow rate is 80%;
- the floor caps at $50,000;
- Highest Equity is persistent; and
- below-floor breach confirmation uses 15 seconds.
Trailing floor formula
initial floor
= starting balance − trailing drawdown amount
positive progress
= max(0, Highest Equity − starting balance)
floor increase
= positive progress × 80%
active floor
= min(
starting balance,
initial floor + floor increase
)
Worked Instinct example
Starting balance: $50,000
Initial floor: $48,000
Highest Equity: $52,000
Positive progress: $2,000
80% floor increase: $1,600
Active trailing floor:
$48,000 + $1,600 = $49,600
Instinct breach confirmation
Current standard Instinct does not use “touch the floor = instant breach.” Live equity must remain strictly below the active trailing floor for the configured 15-second confirmation buffer before the Trailing Drawdown breach is confirmed.
Active trailing floor: $49,600
Live equity: $49,550
Equity is $50 below the floor.
If that strict-below-floor condition persists through the configured 15-second confirmation window, the Trailing Drawdown breach can be confirmed.
The 15-second buffer is a breach-confirmation mechanism. It must not be treated as permission to intentionally trade below the active floor.
What if equity recovers during the buffer?
The current confirmation rule requires the account to remain below the floor for the configured period.
If the continuous strict-below-floor condition is not maintained for the full buffer, that full breach-confirmation condition has not completed.
See Trailing Drawdown for the full Instinct model.
Open PnL can cause a hard breach
Hard loss rules use live equity. This means the account does not need to wait for a losing position to be manually closed.
Balance: $50,500
Open PnL: -$2,600
Live equity:
$50,500 − $2,600 = $47,900
Active Maximum Loss floor: $48,000
Result: live equity is below the Maximum Loss floor, so the Maximum Loss breach condition is satisfied.
Waiting for a losing position to recover does not suspend account-level hard-risk rules.
Near-breach is not breach
FairTicks can warn the trader before an account reaches a hard-risk condition.
| Risk level | Consumption | Breach? |
|---|---|---|
| Safe | Below 60% | No |
| Warning | 60% to below 75% | No |
| High | 75% to below 85% | No |
| Critical | 85% to below 100% | No |
Critical means the account is very close to an active hard-risk limit. It does not mean the account has already breached.
If more than one enabled risk rule is being monitored, FairTicks can display the most serious current near-breach state.
Protection Pause is not breach
At the Critical near-breach level, Protection Pause can temporarily block new exposure depending on the trader's protection configuration.
During a Protection Pause:
- new positions can be blocked;
- new exposure can be blocked;
- Reverse Trade can be blocked;
- existing positions can still be closed; and
- hard-risk floors remain unchanged.
The pause does not create a new Daily Loss floor, lower Maximum Loss, lower Trailing Drawdown, or restore consumed buffer.
Pre-trade rejection is not breach
FairTicks can reject a proposed trade before exposure is created.
Examples include:
- Maximum Exposure exceeded;
- invalid submitted Stop Loss;
- Discipline planned Stop Loss risk above its applicable cap;
- account not permitted to open new exposure;
- Protection Pause active;
- Reverse Trade cooldown active; or
- another entry validation fails.
If a proposed trade is rejected before it opens, the rejection itself is not a hard breach.
Missing Stop Loss is not a standard breach
Current standard paid FairTicks accounts do not require Stop Loss merely to avoid breach.
Current standard behavior is:
- Rapid: Stop Loss optional;
- Classic: Stop Loss optional;
- Discipline: Stop Loss optional, but when used, planned Stop Loss risk is capped at 0.5% of starting simulated capital;
- Instinct: Stop Loss optional.
Under the current standard paid configuration,
the absence of a Stop Loss by itself
does not move the account to
BREACHED.
Consistency is not a breach
Training Consistency and Qualified Consistency are eligibility rules, not account-level hard loss floors.
| Rule | Can block | Hard breach? |
|---|---|---|
| Training Consistency | Training pass on Classic and Discipline | No |
| Qualified Consistency | Payout eligibility | No |
| QPD incomplete | Payout eligibility | No |
| KYC incomplete | Payout submission | No |
What happens after a confirmed breach?
Once FairTicks confirms an applicable hard breach, the account enters the breach lifecycle.
- The hard breach reason is recorded.
- Open positions are handled through the official breach settlement process.
-
The account status moves to
BREACHED. - New trading is disabled.
- The breach remains in the account's historical record.
- Any reset or future lifecycle action depends on the selected account's eligibility rules.
Once the breach is officially confirmed
and the account enters
BREACHED,
a later favorable market move
does not reverse the breach.
Can a breached Training Account be reset?
Reset depends on the account family and eligibility state.
| Family | Paid Reset | Free Reset |
|---|---|---|
| Rapid | Not available | Not available |
| Classic | Available when eligible | Not available |
| Discipline | Available when eligible | Available once when all Free Reset conditions are satisfied |
| Instinct | Available when eligible | Not available |
Qualified / Straight Accounts do not use the Training Reset system.
See Reset Accounts for the full reset rules.
Expired vs breached
Expiration and breach are separate lifecycle events.
| State | Meaning |
|---|---|
EXPIRED
|
The Training validity period ended. |
BREACHED
|
A hard-risk condition failed the current attempt. |
The standard extension flow blocks breached accounts. A trader should follow the lifecycle action actually shown for the selected account rather than assuming every expired or breached state can be converted through a fixed extension-reset sequence.
Free Trial breach
Free Trials can still be subject to the hard-risk rules enabled on their trial configuration.
If a Free Trial becomes
BREACHED:
- new trading is disabled;
- standard Paid Reset is unavailable;
- Discipline Free Reset is unavailable;
- standard extension is unavailable;
- Qualified generation remains unavailable; and
- the unused-trial restart does not repair the breach.
How to review a breach
When reviewing a breach, check the selected account's official values first.
| Value | Why it matters |
|---|---|
| Account status | Confirms whether the account entered the breach lifecycle. |
| Breach reason | Shows which hard-risk rule triggered. |
| Live equity | Shows the equity used by live risk evaluation. |
| Active risk floor | Shows the relevant Daily Loss, Maximum Loss, or Instinct Trailing Drawdown boundary. |
| Open positions | Helps explain unrealized PnL at the time of the event. |
| Account timeline | Shows the sequence of lifecycle and risk events. |
Common mistakes to avoid
| Mistake | Correct understanding |
|---|---|
| Thinking near-breach means the account already failed | Near-breach is a warning state, not a confirmed breach. |
| Thinking a rejected trade is a breach | A pre-trade rejection normally prevents the position from opening and is not itself a hard breach. |
| Using 25% Profit Room for Classic | Classic uses 10%. Discipline uses 25%. |
| Thinking Instinct uses a $2,500 Trailing Drawdown | Current standard Instinct 50K uses $2,000. |
| Thinking Instinct follows 75% | Current standard follow rate is 80%. |
| Thinking Instinct breaches instantly at floor touch | Current standard confirmation requires live equity to remain strictly below the floor for 15 seconds. |
| Treating the 15-second buffer as extra drawdown | It is breach confirmation, not additional risk allowance. |
| Thinking missing Stop Loss breaches Discipline | Current standard Discipline Stop Loss is optional. |
| Thinking Consistency failure is a hard breach | Consistency can block pass or payout eligibility, but it is not a hard-risk floor. |
| Ignoring open PnL | Live equity includes open PnL, so floating losses can trigger hard-risk conditions. |
| Expecting a market recovery to undo a confirmed breach | Once a breach is officially confirmed, the account remains breached for that attempt. |
Common questions
What is a hard breach?
A hard breach is a confirmed failure of an active account-level hard-risk rule.
Which rules can hard-breach current standard accounts?
Daily Loss where enabled, Maximum Loss where enabled, and Instinct Intraday Trailing Drawdown under its configured confirmation logic.
Is Warning a breach?
No.
Is High a breach?
No.
Is Critical a breach?
No. Critical means the account is very close to an active hard-risk limit.
Can Protection Pause breach my account?
Protection Pause itself is not a hard breach. It temporarily restricts new exposure while the normal hard-risk rules continue to apply.
Can an open position breach Daily Loss or Maximum Loss?
Yes. Both use live equity, so unrealized losses can satisfy the breach condition before the trader manually closes the position.
Can open profit raise the Instinct trailing floor?
Yes. Instinct Highest Equity is based on live equity, so profitable open positions can create a new high-water mark.
Does touching the Instinct floor instantly breach the account?
No under the current standard configuration. Instinct uses a strict-below-floor condition with a 15-second confirmation buffer.
Does going below the Instinct floor for one moment guarantee breach?
Not by itself. The full current breach condition requires the strict-below-floor state to persist through the configured confirmation period.
Can I use the 15 seconds as extra risk?
No. It is a confirmation mechanism, not additional drawdown capacity.
Is Consistency failure a breach?
No. Training Consistency can block passing where applicable, and Qualified Consistency can block payout eligibility, but neither is a hard-risk breach by itself.
Can missing QPD breach my account?
No.
Missing QPD can keep payout eligibility incomplete,
but does not move the account to
BREACHED.
Can missing KYC breach my account?
No. KYC is a payout/compliance requirement, not a Daily Loss, Maximum Loss, or Trailing Drawdown breach.
Can a missing Stop Loss breach Discipline?
No. Current standard Discipline Stop Loss is optional. When a Stop Loss is used, its planned risk is capped at 0.5% of starting simulated capital.
Can a rejected trade breach the account?
The rejection itself does not. A rejected pre-trade proposal generally means the new exposure did not open.
Can a breached Training Account be reset?
It depends on family and eligibility. Classic, Discipline, and Instinct can have Paid Reset pathways where eligible. Discipline also has its special one-time Free Reset pathway. Rapid has no standard reset.
Can a breached Qualified Account be reset?
No through the standard Training Reset system.
Can a confirmed breach be reversed if the market recovers?
No.
Once the breach has been officially confirmed
and the account has entered
BREACHED,
a later market recovery does not undo that lifecycle event.
Summary
FairTicks distinguishes clearly between: warnings, pre-trade rejections, payout blockers, and true hard-risk breaches.
Current standard hard-risk frameworks are:
- Daily Loss on Classic and Discipline;
- Maximum Loss on Rapid, Classic, and Discipline; and
- Intraday Trailing Drawdown on Instinct.
Daily Loss and Maximum Loss use live-equity floor conditions. Instinct uses a $2,000 initial Trailing Drawdown on 50K, an 80% follow rate, and a 15-second strict-below-floor confirmation.
A FairTicks breach is a confirmed hard-risk event; near-breach warnings, payout blockers, Consistency conditions, and rejected orders are separate mechanisms.
A hard breach is different from being close to one.
Use live equity, the selected account's active risk floors, and the account timeline to understand exactly why an account entered the breach lifecycle.
Confused by a breach?
Check the selected account's status, breach reason, live equity, active risk floor, open positions, and account timeline. If something still appears incorrect, contact FairTicks Support with your account number and relevant screenshots.