What Happens When a Rule Is Breached
A plain guide to what failed and liquidated mean when you break an account rule on Funded with Flow, how No Drawdown plans differ, and what to do next.
When you break a hard account rule, the account can be failed or liquidated. What happens next depends on the specific rule and the plan you are trading, and every exact figure lives in your account and on the Pricing page.
Failed versus liquidated
Two things can happen when a limit is crossed:
- Failed: the account stops counting toward the profit target. It can no longer pass, and you cannot keep trading it as an active challenge.
- Liquidated: your open positions are closed out automatically when a hard loss limit such as the daily loss limit or the maximum drawdown is hit.
The rules that can end an account include the daily loss limit, the maximum drawdown (which may be trailing, static, or end of day depending on your plan), contract and position size limits, the maximum position hold time, and the maximum allocation risk per position. The exact numbers vary by plan and are shown on each plan card on the Pricing page and in the account details on your Accounts page.
No Drawdown plans work differently
If you are on a No Drawdown plan, the account does not liquidate on drawdown. Instead it uses a maximum exposure cap, so the guardrail is how much you can have on at once rather than a trailing loss. The cap and the rest of your limits are shown on your account.
Prohibited behaviour
Some breaches are about conduct, not just numbers. Market manipulation and abusive trading strategies are not allowed and can end an account regardless of profit or loss. The full list lives in the Trading Rules. If you run automated strategies, note that automation auto pauses when an account is no longer tradable, so a breach also stops your algos.
What to do next
A failed or liquidated challenge does not end your journey. You can review what happened on your Dashboard and Accounts page, then start a fresh challenge whenever you are ready. Your free paper account never fails or liquidates, so it is always there to practice on.
If something about a breach on your account looks wrong, email [email protected] and the team can look into it with you.
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