At a glance
Losing trades inside the limits are normal. They do not end an account.
Exceeding a loss limit is a breach. A funded account that breaks a loss limit is closed, with no warning first. An evaluation that exceeds a limit fails (Terms §5.4).
Some funded-account rules are not breaches. They remove ineligible profit, close positions before a market close, or hold back a payout request, but the account stays open.
Everything is simulated. A trading loss never leaves you owing money: the money at risk is the fee you paid. Fraud and serious or repeated prohibited practices are treated differently under the Terms (§11.5).
Key rule: A breach ends the account. A rule outcome does not: profit is removed, positions are closed or a payout request waits, and the account stays open.
Breach or rule outcome?
What happened | Is it a breach? | What follows |
A losing trade or a losing day, with no loss limit exceeded | No | The account continues. See What is drawdown, and how do the Max Daily Loss and Max Loss work? |
The daily or overall loss limit is exceeded | Yes | A funded account is closed, with no warning first. An evaluation fails (Terms §5.4). A person confirms what happened on a specific account |
A prohibited practice | Handled under the Terms | Steps proportionate to the conduct, from a warning to cancelling trades, deactivating the evaluation, closing the account and forfeiting any prospective reward (§11.3). See Which trading practices are prohibited? |
A funded-account rule outcome applies | No, not on its own | The account stays open. See the next table |
A Flash evaluation has no daily loss limit, so only its overall limit can end it. Every other evaluation, and every funded account, has both a daily and an overall limit.
Rule outcomes on a funded account. These do not close the account on their own:
What happens | What it means |
On a funded 1-Step, Instant or Flash account, open positions are closed and pending orders cancelled at the platform's Friday close before each weekend, and 30 minutes before each symbol's holiday close | A system close, not a breach. Crypto symbols that trade 24/7 stay open, and a funded 2-Step may hold over weekends and holidays |
A trade is opened or closed within 3 minutes before or after a high-impact release, the edges of the window included | Its profit is ineligible and is deducted from your balance; a loss on it stays. The news event is not a breach in itself, but the deduction can take the account past its overall loss limit. A trade opened at least 5 hours before the window and closed by a pre-set stop loss or take profit keeps its profit |
On a funded Flash account, your best day is more than 20% of the cycle's eligible profit | You keep trading, but you cannot request a payout while it is above 20%. It is not a breach |
The scaling plan is on 2-Step and 1-Step only. On those accounts, a news-profit deduction, or the weekend or holiday close on a funded 1-Step, is not a breach in itself, so on its own it does not stop a completed payout from counting toward the scaling plan.
Worked examples
Loss inside the limits: a 2-Step $100K evaluation account loses $2,000 on Tuesday. That is inside the $5,000 daily limit, and the account is above its $90,000 floor. The account continues.
Breach in an evaluation: the same account loses $5,200 in one day, measured from the daily opening balance on this 2-Step example. The daily limit is exceeded: that is a breach, and the evaluation fails.
Breach on a funded account: the same loss on a funded 2-Step account closes the account, with no warning first.
Example: A rule outcome: a funded 1-Step account closes a winning trade 1 minute after a high-impact release. That trade's profit is ineligible and is deducted from the balance. The account stays open, as long as the deduction does not take it past a loss limit.
Consequences and exceptions
The loss limits are separate. Either one can end an account on its own. A Flash evaluation has only its overall limit.
There is no warning before a funded account is closed for a loss limit. Watch your equity against your limits yourself.
A rule outcome can still reduce your balance or delay a payout. Read the funded rules before your first cycle.
The fee is spent. A failed evaluation is not refunded because it failed.
Trading losses cannot leave you owing money. Trading is simulated, so losses cannot create a debt or a margin call. Fraud and serious or repeated prohibited practices are a different matter and are treated under the Terms (§11.5).
You can try again after a breach. The options, and what they cost, are in My challenge failed: can I retry or reset it?. A Flash evaluation is a single attempt with no reset. If you want to understand what happened first, ask us and we will go through the trade record with you before anything else.
Why was my account closed? This article explains the rules in general. A person answers questions about your specific account: see My account failed or was closed: what happened?.
Related articles
Next step
If you think an account ended in error, do not open new trades on any replacement account yet. Message us in the chat and ask for a person, with the account number, the platform, the time shown on your platform and a screenshot. A person reviews your trade history and cites the specific rule that applied. If a verified technical incident attributable to EverFunded occurs, we will review its impact and make an appropriate correction where required. Never send a password. Every way to reach us is in How to contact EverFunded support.