If your floating loss crosses 1.5% at any point:
1. All open trades are closed immediately by the platform to prevent further exposure.
2. The account remains active, but the associated performance reward for this cycle is reduced by 50% on every occurence.
The breach does not fail the account outright — you can continue trading in the Funded phase — but the reward earned during that payout cycle is halved to reflect the risk exposure taken. Subsequent cycles are unaffected, provided no further breaches occur.
On the fourth occurence the challenge is marked as failed.