Understanding what happens when a rule is breached is important. This guide covers every scenario, what triggered it, what it means for your account, and what you can do next.
Types of rule violations
Not every violation works the same way. Here's what can happen depending on the type:
1. Drawdown Breach (overall drawdown)
Your account is automatically closed by the system the moment your equity drops below the allowed maximum drawdown limit. All open positions are immediately closed at market price. This is an automated protection mechanism, no human makes this decision.
How you'll know: You will receive an email with the subject line containing "Drawdown Limit Exceeded" or similar wording, along with the exact time and equity level at which the breach occurred.
2. Trailing Drawdown Breach
Works the same way as an overall drawdown breach, but the limit moves upward as your equity grows. The trailing drawdown locks in your highest equity point and calculates the limit from there. This means the more profit you make, the higher your minimum equity floor becomes.
Example: You have a $100,000 account with a 6% trailing drawdown. Your equity reaches $106,000. Your new drawdown limit is now $99,640 ($106,000 Γ 94%). Even if your equity drops back to $102,000, the limit stays at $99,640 because it only moves up, never down.
How you'll know: Same as overall drawdown. Email with exact peak equity, trailing limit, and breach point.
3. Daily Drawdown Breach
Triggered when your equity drops below the allowed daily loss limit. The daily drawdown resets every day at 00:00 UTC. All open positions are closed automatically at market price the moment the limit is hit.
How you'll know: The email will reference "Daily Drawdown Limit Exceeded" and include the specific day, starting equity, and breach level.
4. Max Single Trade Loss
If a single trade loses more than the allowed percentage of your account value (typically 1% or 3% depending on your product), this triggers an automatic breach. This applies even if your overall account is profitable.
Example: You have a $50,000 account with a 3% max single trade loss rule. One trade loses $1,600 (3.2% of account value). That single trade triggers the breach, even though your total profit is $4,000.
5. Time Limit Breach (Turbo and time-limited products)
Some products, especially Turbo challenges, have a maximum time limit to reach the profit target. If the time expires and the target hasn't been met, the account is closed automatically.
How you'll know: You will receive an email referencing "Time Limit Expired" with the expiration date and your final results.
6. Trading Rule Violation (prohibited strategies, tick scalping, etc.)
Your account is manually reviewed by our Risk Management team. If a violation is confirmed, your account may be closed or your payout may be adjusted. This includes but is not limited to prohibited trading strategies, tick scalping, one-sided bets, or use of unauthorized tools or EAs.
How you'll know: You will receive a detailed email explaining which rule was violated, with specific data from your trading history.
7. Inactivity (35+ days without a trade)
Your account expires automatically if no trade is opened or closed for 35 consecutive calendar days. No penalty is charged. Your progress and any unrealized profit are forfeited.
Important: You will receive a warning email 7 days before your account is set to expire. If you see this email, simply open and close one trade to reset the inactivity timer.
How you'll know: You will receive an email with the subject "Account Expired β Inactivity."
What about the Best Day Rule?
The Best Day Rule does NOT breach your account and will never cause your account to be closed. It only affects payout eligibility. If your best trading day exceeds 20% of your total profit at the time of a payout request, your payout will be delayed until the condition is met through additional trading days.
Your account stays active, your profit stays intact, and you can keep trading. It simply means you cannot request a withdrawal until the Best Day Rule condition is satisfied.
What happens to your open positions during a breach?
When a drawdown breach (daily, overall, or trailing) is triggered, all open positions on your account are closed immediately at the current market price. You do not get to choose which positions are closed or at what price. This is an automated, system-level action designed to prevent further loss.
What happens to your payouts?
All payouts, whether already completed or pending at the time of the breach, are safe and will not be reversed or voided. During a pending withdrawal, your account is temporarily frozen and you cannot place any trades. If a breach occurs outside of a withdrawal period, it does not affect any payouts that were already approved or are in the processing queue.
Can I appeal?
For drawdown breaches (daily, overall, or trailing): If you believe a technical issue on the platform caused the breach, you can contact support and we will review the data.
In most cases, the system data is accurate and complete, but we take every report seriously and will investigate. Contact support with the subject "Drawdown Breach Review Request" and include your Account ID and a description of what you believe went wrong.
For trading rule violations: Yes. If you believe the decision was made in error, you can submit an appeal within 48 hours of receiving the closure email. Contact support with the subject "Account Closure Appeal" and include your Account ID, a screenshot of your trade history from your trading platform, and a clear explanation of why you believe the decision should be reconsidered. Appeals are reviewed within 5 business days. The outcome of the appeal is final.
For time limit and inactivity breaches: These cannot be appealed as they are based on objective, time-based criteria.
How to start again
Every new challenge is a completely independent account with a clean slate. A previous breach does not affect your ability to purchase a new challenge or your performance on future accounts.
Visit upcomers.com, choose your challenge, and start fresh. If you're unsure what caused your breach, we recommend reviewing our drawdown and trading rules guides before starting again so you can avoid the same situation.
