TL;DR: An account is breached when you violate a hard rule — most commonly the Maximum Loss Limit or the daily loss limit. A soft breach pauses your account until the next trading day; a hard breach ends it. A breached Challenge Account can be reset to start fresh, but a FundedNext Account cannot be reset — you'd need to pass a new Challenge. In all cases, any accumulated profit is forfeited upon a breach.
A breach happens when your account violates one of FundedNext Futures' hard trading rules. What happens next — and whether you can recover — depends on the type of breach and whether it's a Challenge Account or a FundedNext Account. Here's the full picture.
What can cause an account breach?
Your account can be breached if you violate any of these rules (the exact rules depend on your model):
Maximum Loss Limit (MLL) breach — losing more than your account's total allowed loss. The MLL trails on an End-of-Day basis, and a floating loss that hits the MLL during a live trade breaches the account instantly.
Daily Loss Limit breach — for models with a daily loss limit (Rapid Daily, and Rapid Pro with the Add-On), losing more than the allowed amount in a single trading day.
Prohibited strategy violation — using any banned trading strategy.
Overnight/weekend holding — failing to close positions by 3:10 PM CT, or holding through the weekend.
Withdrawing all simulated profit at once (Legacy) — this causes a hard breach.
Note: Exceeding your contract limit does not breach your account — instead, profit from the excess (violated) contracts is deducted, while losses still count.
Soft breach vs hard breach — what's the difference?
This is the key distinction that determines what happens to your account:
Soft breach — your account is paused for the rest of the day and resumes at the start of the next trading day. It is not permanently lost.
Hard breach — your account is completely breached and cannot continue. If it's a Challenge Account, you can reset it (see below). If it's a FundedNext Account, it cannot be recovered.
What happens if my Challenge Account is breached?
A hard-breached Challenge Account can be reset. Resetting gives you a new account that starts fresh — your balance returns to the initial amount, your metrics reset, and your loss limits refresh. This lets you continue pursuing your funded account without buying an entirely new Challenge.
What happens if my FundedNext Account is breached?
A breached FundedNext Account cannot be reset. Once a FundedNext Account is hard-breached, it cannot be recovered. To trade a funded account again, you would need to purchase and pass a new Challenge.
What happens to my profit if my account is breached?
Upon a breach, all accumulated profit is forfeited. This applies whether it's a Challenge Account or a FundedNext Account, so managing your risk to stay within your limits is essential to protecting your progress.
Can I get my account back?
It depends on the breach and account type:
Scenario | Can it be recovered? |
Soft breach (any account) | Yes — the account resumes the next trading day |
Hard-breached Challenge Account | Yes — reset it for a fresh start |
Hard-breached FundedNext Account | No — you'd need to pass a new Challenge |
One more thing to know: if a breach frees up one of your active FundedNext Account slots and you have an account pending (because you'd reached the 5-active limit), that pending account is activated automatically in the freed slot.
How can I avoid a breach?
The best way to protect your account is to trade within your limits:
Respect your Maximum Loss Limit and, if applicable, your daily loss limit.
Close all positions before the 3:10 PM CT daily close — no overnight or weekend holding.
Follow all prohibited strategy rules.
On a Legacy FundedNext Account, avoid withdrawing all your profit at once.
Staying disciplined keeps your account active and your progress intact.