"Breach" is the word every prop trader dreads, and a lot of fear comes from not knowing exactly what it means or what happens next. This guide lays it out plainly: what breaches a Fewpips account, what happens the moment it does, and - importantly - what is and is not recoverable afterward.

What "Breach" Actually Means

A breach is the moment your account violates a hard rule. When it happens, the consequence is immediate and automatic:

  • Violations immediately breach the account. There are no warnings and no second chances.
  • The system always uses the lowest equity point for rule checks, so a brief dip below a limit counts - even if you recover seconds later.
  • All rules apply to both floating and closed trades, so an open position with an unrealized loss can trigger a breach in real time.

The Ways an Account Gets Breached

Breaches fall into two broad groups: risk-limit breaches and conduct (prohibited-practice) breaches.

Risk-limit breaches

  • Daily loss limit - equity falls more than the allowed percentage from your start-of-day figure (4% on 1-Step and 2-Step, 5% on 3-Step, 4% on Futures). See Loss Limits Explained.
  • Maximum Loss Limit (trailing drawdown) - equity touches the trailing floor, which is referenced to your highest balance and is not capped at the starting balance. See Drawdown Rules.
  • Per-trade limit - a single "trade idea" (same symbol and direction within 10 minutes) loses more than 2% of the starting balance.

Conduct breaches

  • Prohibited practices - latency arbitrage / sub-30-second tick scalping (a potential hard violation), HFT, copy trading, cross-account hedging, extreme grids/martingales, one-sided betting, and the rest. See Prohibited Trading Explained.
  • Trading without SL/TP on a funded account - see SL/TP Requirements.
  • News trading - prohibited across all account types, 5 minutes before and after major high-impact events.

What Happens Immediately After a Breach

On breach, the account is deactivated and trading stops. Any progress toward a target or a payout on that account ends with it. If the breach is a conduct/hard violation flagged during a compliance audit, it can also forfeit progress and, in serious cases involving fraud or false disputes, lead to a permanent ban.

What's Recoverable - and What Isn't

No resets

Fewpips does not offer account resets. If a funded account is lost, you cannot reset it - a new 1-Step challenge purchase (or a new Instant account purchase) is required to get back to funded status. The same applies to a failed challenge: you re-enter by purchasing a new challenge.

Refunds (only before your first trade)

The challenge fee is refundable within 48 hours of purchase, provided no trades have been placed. A $10 administration charge applies per approved refund. Once you place your first trade, the fee is non-refundable - executing a trade is treated as requesting immediate performance of the evaluation service. Accounts closed for rule violations are not eligible for a refund.

Disputes and chargebacks

Raising a false dispute or chargeback results in a permanent ban and immediate forfeiture of all account progress. If a dispute is raised, the associated account is paused. To reactivate it you must withdraw the dispute with your financial institution, provide official proof of withdrawal, and allow up to 45-60 business days for risk management to verify and restore credentials.

Inactivity (a recoverable "soft" breach)

Inactivity is handled separately from a rule breach:

  • Challenge phase: accounts are marked inactive after 7 consecutive days with no trades, then deactivated. One executed trade resets the timer.
  • Funded phase: 14 consecutive days of zero trading activity marks the account inactive and it is cancelled.

After a Payout: Your Account Refreshes (Not a Breach)

Worth clearing up because it surprises people: after a successful withdrawal, your credentials are retained, the balance updates to the new starting equity, and a new cycle begins automatically with your next executed trade. That is a normal refresh, not a breach.

How to Avoid a Breach in the First Place

  • Size each trade around 1% so you are inside the per-trade cap and far from the daily limit.
  • Always attach a stop-loss and take-profit, and never widen a stop to avoid a loss.
  • Hold trades 30 seconds or longer and steer clear of anything resembling latency arbitrage.
  • Never trade major news, and never copy trade or hedge across accounts.
  • Place at least one trade within the inactivity window to keep the account live.

Frequently Asked Questions About Account Breaches

Can I reset my account after a breach?

No. Fewpips does not offer resets. To return to funded status after losing a funded account, you purchase a new 1-Step challenge or a new Instant account.

Can I get a refund if my account is breached?

No. Refunds are only available within 48 hours of purchase and only if no trades have been placed (with a $10 administration charge). Accounts closed for rule violations are not eligible for a refund.

Does a breach happen on a brief dip, or only at the close?

On a brief dip. The system uses the lowest equity point of the period and counts floating (unrealized) losses, so touching a limit intraday is a breach even if the equity recovers afterward.

What is the difference between a breach and an inactivity cancellation?

A breach is a rule violation that terminates the account immediately. Inactivity is a separate, avoidable cancellation: 7 days on a challenge or 14 days on a funded account with no trading. One executed trade resets the inactivity timer.

What happens if I raise a chargeback?

A false dispute or chargeback leads to a permanent ban and forfeiture of all progress. If you have raised a dispute, the account is paused until you withdraw it, provide proof, and allow 45-60 business days for verification.

The best recovery plan is not needing one. Learn the limits, respect the prohibited-practice rules, and keep your risk modest - and a breach becomes a rare event you have planned around rather than a surprise that ends your run.