Applies to: CFD and Futures
Short answer
Breaking a rule in an evaluation means the account can't progress to funded. Breaking a rule on a funded account can lead to the account being closed, your Trader Agreement being terminated and profits being removed. Not every violation is caught automatically, so accounts are also reviewed manually, especially at payout time.
During an evaluation
If you break a trading rule or parameter, the account is no longer eligible to move to a funded account.
Every passed evaluation is reviewed before funding. If a policy breach is found, the account won't be funded and may not be eligible for a refund.
On a funded account
Depending on the violation, we may:
Close the account
Terminate your Trader Agreement
Void or remove profits made through prohibited practices
Deny a payout
Take action on linked accounts
Not all breaches are detected straight away
Some violations are only found during a manual review by our Risk Team, for example during a payout request or a compliance check. We can act on any account found to break our terms, even if the system didn't flag it at the time.
Soft breach vs hard breach
Hard breach: the account is failed, for example by hitting the maximum drawdown.
Soft breach: the account is locked but not failed. For example, hitting the optional daily loss limit on a Futures Reserve account locks trading for the rest of that day. Trading unlocks at the next daily reset, which is 5:00 PM New York time (rollover).
Risk Team decisions are final
All compliance and risk decisions made by the Blue Guardian Risk Team are final and binding.