Violations & Breaches
A breach happens when a FairTicks account reaches or crosses a hard risk limit.
When a hard breach is confirmed, the account moves to BREACHED, trading is disabled, and open positions are closed through the official breach process.
Breaches are rule-based account events. They are not random decisions. Your dashboard shows the risk floors, live equity, remaining buffer, and account status so you can understand where the account stands.
Breach in one sentence
A hard breach happens when live equity reaches or crosses an active breach floor, such as Daily Loss, Max Loss, or Trailing Drawdown.
Breach = the account crossed a hard risk rule.
Near-breach = the account is close to a hard risk rule, but has not breached yet.
The main hard breach types
FairTicks hard risk breaches are based on account risk floors. The exact rules active on your account depend on the account model, account type, and configuration shown in your dashboard.
| Breach type | What triggers it | Main reference |
|---|---|---|
| Daily Loss breach | Live equity reaches or falls below the current daily breach floor. | Daily start equity and daily loss limit. |
| Max Loss breach | Live equity reaches or falls below the current Max Loss floor. | Current Max Loss floor, including EOD TickDrawdown updates where applicable. |
| Trailing Drawdown breach | Live equity falls below the trailing floor and the breach condition is confirmed. | Highest equity and trailing drawdown limit. |
Consistency, NP Score, KYC, payout wallet, and payout checklist conditions are not hard risk breaches by themselves.
They can block payout eligibility, but they do not automatically move a Training account to BREACHED.
Daily Loss breach
Daily Loss protects the current trading day. It uses the account's daily start equity and daily loss limit to define the daily breach floor.
daily breach floor = daily start equity − daily loss limit
breach if live equity ≤ daily breach floor
Daily start equity: $50,000
Daily loss limit: $1,500
Daily breach floor: $48,500
If live equity reaches $48,500 or lower, the account breaches Daily Loss.
Daily Loss uses live equity, so open positions can cause a Daily Loss breach before they are manually closed.
See the full Daily Loss Limit article for detailed examples.
Max Loss breach
Max Loss protects the full account. The Max Loss floor starts below initial capital, can move upward through the FairTicks EOD TickDrawdown model, never moves downward, and can lock at initial capital.
breach if live equity ≤ current Max Loss floor
Account capital: $50,000
Current Max Loss floor: $48,000
Live equity: $47,950
Because live equity is below the current Max Loss floor, the account breaches Max Loss.
Do not use only the initial Max Loss floor in your own calculation. Always use the current Max Loss floor shown in your dashboard, because it can move upward after realized gains.
See the full Max Loss & EOD TickDrawdown article for detailed examples.
Trailing Drawdown breach
Trailing Drawdown protects account progress. The trailing floor is based on the highest equity reached by the account minus the trailing drawdown limit.
trailing floor = highest equity − trailing drawdown limit
breach if live equity falls below the trailing floor and the breach condition is confirmed
Highest equity reached: $52,000
Trailing drawdown limit: $2,500
Trailing floor: $49,500
Live equity falls to: $49,400
The account is below the trailing floor, so Trailing Drawdown breach can be triggered once confirmed.
FairTicks can use a short confirmation buffer for Trailing Drawdown to avoid unfair outcomes from extremely brief micro-movements below the floor. This buffer is not extra drawdown and should not be treated as tradable room.
See the full Trailing Drawdown article for detailed examples.
What is not a hard breach by itself?
Some events can block an action or create a warning without closing the account as BREACHED.
This distinction is important.
| Event | What it means | Account result |
|---|---|---|
| Near-breach warning | The account is close to a hard risk floor. | Warning or Protection Pause may appear. The account is not breached yet. |
| R-01 / Stop Loss rejection | A trade does not satisfy pre-trade risk rules. | The trade is rejected before opening. The account is not breached because of the rejection alone. |
| Max exposure rejection | The position would exceed allowed exposure. | The trade is blocked before opening. The account is not breached because of the rejection alone. |
| Consistency not satisfied | Profit is too concentrated in the best day for payout eligibility. | Payout can remain blocked. It does not automatically breach the Training account. |
| NP Score incomplete | The account does not yet have enough qualifying profitable days for payout. | Payout can remain blocked. It is not a hard risk breach. |
| KYC not approved | Identity verification is not complete for payout. | Payout can remain blocked. It is not a trading breach. |
| Open positions before payout | Payout requires positions to be closed. | Payout can remain blocked. The account is not breached because positions are open. |
Breach vs warning vs blocked action
Traders often confuse these three states. They are not the same.
| State | Meaning | Example | Does it close the account? |
|---|---|---|---|
| Warning | The account is approaching risk. | Near-breach at Warning, High, or Critical level. | No, unless a hard breach later happens. |
| Blocked action | The platform prevents an action before it creates invalid exposure. | Trade rejected because Stop Loss is missing or exposure is too high. | No, the action is simply blocked. |
| Hard breach | The account reached or crossed an official breach floor. | Live equity falls to the Daily Loss floor. | Yes, the account moves to BREACHED. |
What happens after a hard breach?
When a hard breach is confirmed, FairTicks applies the official breach process for that account.
- The breach reason is recorded.
- Open positions are closed through the official breach process.
- The account status changes to
BREACHED. - Trading is disabled on that account.
- The account remains visible in the dashboard for review and history.
- A dashboard message, notification, timeline event, or email may appear depending on platform configuration.
- Reset may be available only if the account is eligible under reset rules.
A breach is not reversed because the market later moves back in your favor. The account state is based on the official live equity, risk floor, and rule condition when the breach was triggered.
What happens to open positions?
If the account breaches while positions are open, FairTicks closes those positions through the official breach process. The resulting account state is recorded in the account history.
Current balance: $50,200
Open PnL: -$1,800
Live equity: $48,400
Daily breach floor: $48,500
Because live equity is below the daily breach floor, the account breaches even though the position is still open.
The key point is simple: hard breach checks use live equity, and live equity includes open PnL.
After a breach — what can you do next?
Your next options depend on the account model, status, expiration, free-trial flag, reset history, and eligibility shown in your dashboard.
| Option | When it may be available | Important note |
|---|---|---|
| Paid reset | Eligible breached Training accounts such as Classic or Discipline / Precision. | Rapid, Free Trial, Live / Straight, expired, and reset-limit accounts are not eligible. |
| Free reset | Eligible breached Training accounts that satisfy the free reset activity and downgrade rules. | Free reset downgrades capital, keeps current expiration, and changes future Live split to 50 / 50. |
| Purchase a new Training account | Available if you want to start again outside the breached account. | A new account has its own rules and lifecycle. |
| Contact support | If the breach reason or dashboard values are unclear. | Provide account number, screenshots, position details, and the breach message. |
A breached account does not automatically create refund eligibility. Review FairTicks purchase terms and the available lifecycle actions shown in your dashboard.
Which breached accounts can reset?
Reset is not available on every breached account. The dashboard action state is the source of truth, but the general logic is:
| Account type | Reset availability after breach |
|---|---|
| Classic Training | Paid reset or free reset may be available if eligible. |
| Discipline / Precision Training | Paid reset or free reset may be available if eligible. |
| Rapid Training | No reset. Rapid is a fixed one-shot model. |
| Free Trial | No reset. Free Trials cannot be reset or extended. |
| Live / Straight | No Training reset. Live accounts are not restarted through the Training reset system. |
| Expired account | No direct reset. Extension may be relevant first if the account is eligible. |
Breach vs expiration
A breached account and an expired account are both blocked lifecycle states, but they happen for different reasons.
| Status | Reason | Meaning |
|---|---|---|
BREACHED |
A hard risk rule was crossed. | The account failed because risk went beyond an allowed floor. |
EXPIRED |
The Training period ended before passing. | The account ended because time ran out, not because a hard risk rule was necessarily violated. |
See the full Account expiration article for expiration examples.
Breach vs Protection Pause
Protection Pause is not a breach. It is a temporary cooldown that can activate when your account reaches the Critical near-breach zone and your Trader Settings use Protection Pause.
| State | What happens |
|---|---|
| Protection Pause / COOLDOWN | New exposure can be temporarily blocked. Closing existing positions remains available. |
| BREACHED | Trading is disabled and the account is closed for the current attempt. |
Protection Pause is designed to help you stop adding risk near a hard floor. It does not reset the account, repair losses, or remove the hard breach rules.
Were you warned before breach?
FairTicks can show near-breach warnings when the account approaches active risk floors. Warning levels can appear at 70%, 85%, and 95% of consumed risk for enabled rules.
However, warnings are not a guarantee that you will always have enough time to react. Fast market movement, open PnL changes, stale attention, or protection settings can affect what you see before the hard floor is reached.
Near-breach warnings help visibility, but the official breach rule still applies if live equity reaches the breach floor. Do not rely on a warning as a replacement for monitoring your own risk.
See the full Near-breach detection article for details.
Can a breach happen from open PnL?
Yes. Daily Loss, Max Loss, and Trailing Drawdown use live equity for breach detection. Live equity includes open PnL.
live equity = balance + open PnL
This means a losing open position can breach the account before you manually close the position.
Can a breach be removed if the market comes back?
No. If the account officially breaches, the account state is not removed because the market later recovers.
Daily breach floor: $48,500
Live equity reaches: $48,490
The Daily Loss breach is triggered.
Later, the market moves and equity would have recovered.
The account remains breached because the hard rule was already crossed.
How to review a breach
If you want to understand why an account breached, start with the dashboard and account history.
| What to check | Why it matters |
|---|---|
| Account status | Confirms whether the account is BREACHED. |
| Breach reason | Shows which rule triggered the breach. |
| Live equity at breach | Shows the equity used for the rule check. |
| Relevant breach floor | Shows the floor that was reached or crossed. |
| Open positions | Open PnL may have contributed to live equity. |
| Position history | Shows closes, commissions, and realized results. |
| Account timeline | Shows lifecycle events such as warnings, cooldown, breach, reset, or expiration. |
When to contact support
Contact support if the dashboard values do not explain the breach clearly or if you believe there is a mismatch in the recorded account state.
To help support review your case faster, include:
- Your account number.
- The breach reason shown in the dashboard.
- The market and position involved, if any.
- The time of the breach.
- Screenshots of live equity, breach floor, and account status.
- Any error message or notification shown by the platform.
FairTicks reviews breaches using the official account records shown by the platform: account state, live equity, risk floors, position history, and timeline events.
Common mistakes to avoid
| Mistake | Why it creates confusion | Better understanding |
|---|---|---|
| Thinking near-breach is already a breach | Near-breach is a warning zone. | Breach happens only when the hard floor is reached or crossed. |
| Thinking Critical means the account failed | Critical means very close to breach, not breached yet. | Use Critical as a serious warning, but check the official account status. |
| Ignoring open PnL | Open PnL affects live equity. | Monitor live equity, not only balance. |
| Using the initial Max Loss floor after it moved | Max Loss floor can move upward. | Use the current Max Loss floor shown in the dashboard. |
| Thinking rejected trades are breaches | R-01 and exposure rejections happen before the trade opens. | A rejected action is not the same as an account breach. |
| Thinking consistency is a Training breach | Consistency is payout-related in the current framework. | It can block payout, but does not currently breach Training by itself. |
| Assuming market recovery removes breach | A confirmed breach is a lifecycle state. | The breach remains recorded even if the market later recovers. |
Common questions
“What is a breach?”
A breach is when an account reaches or crosses an official hard risk limit, such as Daily Loss, Max Loss, or Trailing Drawdown.
“Is near-breach the same as breach?”
No. Near-breach means the account is close to a risk limit. Breach means the official hard floor was reached or crossed.
“Can open PnL breach my account?”
Yes. Hard risk rules use live equity, and live equity includes open PnL. A losing open position can push the account to a breach floor.
“Does a rejected Stop Loss or R-01 trade breach my account?”
No. A rejected trade means the platform blocked the action before exposure was created. The account does not breach because of the rejection alone.
“Does consistency breach my Training account?”
No. Consistency may be visible during Training, but it does not currently breach the Training account or block Live generation by itself. It matters later for Live / Straight payout eligibility.
“Can NP Score incomplete breach my account?”
No. NP Score is payout-related. If it is incomplete, payout can remain blocked, but the account is not breached because of NP Score alone.
“What happens immediately after breach?”
FairTicks records the breach, closes open positions through the official breach process, changes the account status to BREACHED,
and disables trading on that account.
“Can I continue trading after breach?”
No. A breached account cannot continue trading in the current attempt. Reset may be available only if the account is eligible.
“Can I reset after breach?”
Only if the account is an eligible Training account. Rapid, Free Trial, Live / Straight, expired, closed, and reset-limit accounts are not eligible for the normal reset flow.
“Why did I breach if I saw no warning?”
Near-breach warnings can help, but fast account movement can still reach the breach floor. The official breach is based on live equity and the active breach floor, not on whether you noticed a warning.
“If the market comes back after breach, can the breach be removed?”
No. Once the breach is officially triggered, it is not reversed because the market later moves back.
“Can a Live account breach?”
Yes. Live / Straight accounts still follow their active hard risk rules. If a Live / Straight account breaches, trading is disabled on that account.
Summary
FairTicks breaches are hard rule events based on live equity and active risk floors. Daily Loss, Max Loss, and Trailing Drawdown can breach the account when their official conditions are met. Other checks, such as R-01, near-breach, consistency, NP Score, KYC, wallet, and payout conditions, can block actions or payout without being hard breaches by themselves.
The most important rule is simple: a breach happens when the account reaches or crosses an official hard risk floor.
Breach closes the current account attempt; warnings and blocked actions are there to help prevent breach before it happens.
Breach is a hard risk event, not a warning.
Near-breach warnings, rejected trades, and payout blockers do not automatically breach the account. Daily Loss, Max Loss, and Trailing Drawdown can breach when live equity reaches the official floor.
Confused by a breach?
Check your account status, breach reason, live equity, risk floor, open positions, and account timeline. If it is still unclear, contact support with your account number and screenshots.