This results in the challenge failing and your account becoming inactive.
To prevent a hard breach, you should:
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Not exceed your maximum daily loss limit.
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Not exceed your maximum total loss limit.
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Avoid trading using "Restricted Activities" and "Unfair Practices" as per the terms and conditions. (https://tradingcult.com/terms-conditions/)
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Meet your profit targets as outlined in your Challenge contract within the specified period.