> For the complete documentation index, see [llms.txt](https://docs.supertrade.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.supertrade.com/rulebook/soft-vs.-hard-breach.md).

# 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.

{% hint style="warning" %}
**Drawdown breaches are always hard breaches.** There are no exceptions or appeals once these limits are exceeded.
{% endhint %}