Soft vs. Hard Breach

Supertrade distinguishes between soft breaches and hard breaches. Understanding the difference is key to managing your account responsibly.

Soft Breach

A soft breach happens when a non-critical rule is violated.

• Examples:

  • Trading during restricted news events

  • Minor rule violations (e.g., breaching holding restrictions in some plans)

  • Using higher lot sizes than allowed under the plan conditions

• What happens:

  • The account remains active, but violations are flagged for review.

  • Supertrade may warn the trader, adjust profits, or reset positions depending on severity.

  • Repeated soft breaches can escalate to account closure.

Hard Breach

A hard breach is a critical violation that immediately disqualifies the account.

• Examples:

  • Exceeding Daily Drawdown limit

  • Exceeding Max Drawdown limit

  • Using prohibited strategies (e.g., latency arbitrage, HFT bots, abusive EAs)

  • Attempting to exploit system errors or mispricing

• What happens:

  • The account is paused or closed instantly.

  • Open positions are liquidated.

  • Profit share may be forfeited, depending on breach type.

Drawdown breaches are always hard breaches. There are no exceptions or appeals once these limits are exceeded.