Depending on your performance against our trading objectives, rules, and prohibited practices, your account will experience one of five potential outcomes.
Find a brief overview of each outcome below:
1. Hard Breach (Challenge Termination):
A critical violation of risk limits (such as Max Daily Loss) or Forbidden Practices. This results in the immediate termination of your challenge. In cases of serious misconduct, it can also lead to a permanent ban from the P1 Prop Markets ecosystem.
Hard Breaches can be automated functions happening in real time, such as daily max loss or Max drawdown, or they can be after the fact if, for instance, the risk team identifies grounds of arbitrage, system exploitation, or any other misconduct that needs to be verified by a human element.
2. Soft Breach (Partial Liquidation):
A soft breach does not terminate the challenge but only the implicated trades that violated the specific condition.
For example, the Risk Consistency Rule, such as exceeding the Max Open Loss per Symbol Limit. In this case, the soft breach will cause the immediate liquidation of the specific implicated trades automatically. Remaining positions will remain active and completely unaffected so the trader can adapt and continue trading to meet evaluation objectives.
3. Unfulfilled Objectives (Pending Progression/Payout):
This is neither a Hard nor a Soft Breach. It simply means your account is still in good standing, but you have not yet met the specific KPIs required to successfully complete an evaluation phase or claim a payout in the Funded Phase.
Examples of these types of objectives are the Profit Target or the Best Day Rule. Taking the example of the Profit Objective, for an evaluation phase to be marked successful, it needs to meet the designated Profit Target threshold. The trader needs to continue trading until this criterion is achieved. In general, trading must continue until the moment each single criterion and objective designated in each challenge is met.
4. Simple Warnings: Automated alerts or direct notifications from our team regarding potential rule boundaries to help keep your trading on track.
5. Termination Due to Inactivity: If an account is left dormant without any executed trades for a specified period, it will be automatically closed/terminated by the system.
Find more Information in our article relating Challenge Evaluation Outcomes: Passing vs. Failing or read our trading playbook article explaining all Objectives, Rules & Forbitten Practices