UC_4.15.1: Soft Breach — Daily Loss Limit Hit (LIVE)

Architecture note: LIVE Soft Breach shares the identical 3-step sequence (Flatten → Lock → Reset), overlay behaviour, Auth0/dashboard isolation, and CR-13 rounding rule as SIM Soft Breach — UC_4.10.1. The only functional difference is the threshold formula: LIVE uses Market_Loss_When_Stopped (Table A/B, per-level lookup) instead of SIM's flat 7.5% × Notional. Sections identical to SIM reference UC_4.10.1 directly rather than repeating content

---

Document References

---

1. Overview

2. Trigger

Execution gateway (Rithmic / MT5 / TraderEvolution) natively evaluates and enforces: Net_P&L ≤ −Daily_Loss_Limit

Formula (LIVE-specific — differs from SIM):

Daily_Loss_Limit = Market_Loss_When_Stopped × Daily_Loss_Ratio (positive value), where:

• Market_Loss_When_Stopped — looked up from Table A (Forex) or Table B (Futures) by the trader's Current_Level.
• Daily_Loss_Ratio = 1/3 (Zapier Table C) — same value as SIM.

Worked example (LIVE Level 1, Forex, $25,000 notional tier):

• Step 1 — Market_Loss_When_Stopped = $1,250 (Table A, Level 1, $25,000 tier)
• Step 2 — Daily_Loss_Limit: $1,250 × 1/3 = $416.67 (Ref: CR-13) → breach fires when Net_P&L <= −$416.67

Rounding rule, Net P&L definition, and 3-step breach sequence (Flatten → Lock → Reset): identical to SIM — see UC_4.10.1 §2 Trigger. Positions are flattened before lock — zero open positions during soft-lock.

3. Pre-conditions

• Trader has an active LIVE account (Status = Active_DMA)
• Middleware maintains a persistent connection to the execution gateway via WebSocket
• Net_P&L is tracked in real-time via ACCOUNT_METRICS stream (from the execution gateway)

4. Post-conditions

Identical to SIM — see UC_4.10.1 §4 Post-conditions, with the following LIVE-specific substitution:

• Account Status does NOT change — remains Active_DMA (LIVE equivalent of SIM's Active_SIM). POST /fail-challenge NOT called.
• Auth0 / dashboard login account is NOT affected — trader can still log in and view dashboard, charts, P&L, journal,... — only the trading/execution account is Read-Only.
• Reset timing (Forex 16:00 CST Mon–Fri / Futures 17:00 CST Exchange Reset) and the Friday-breach weekend-carryover edge case: identical to SIM, see REF above.

5. Basic Flow

Architecture note: identical to SIM — Daily Loss Limit is calculated and enforced natively by the execution gateway (Rithmic / MT5 / TraderEvolution), not by middleware. Middleware only relays state to the frontend via WebSocket; not routed through Zapier.

Step 1 — Real-time P&L monitoring: identical to SIM, see UC_4.10.1 §5 Basic Flow — Step 1.

Step 2 — Breach detected → 3-step sequence (Flatten → Lock → Reset): identical structure to SIM — see BR_4.15.1.3 for the LIVE-specific gateway mechanism.

Step 3 — Fire WebSocket event:

Middleware emits DAILY_LIMIT_BREACH to the frontend (identical payload shape to SIM):

Step 4 — Frontend renders "Daily Limit Reached" overlay: identical to SIM, see BR_4.10.1.1 and §9.1.

Step 5 — Reset time reached → Automatic unlock: identical to SIM, see UC_4.10.1 §5 Basic Flow — Step 5.

6. Alternative Flow

Identical to SIM — see UC_4.10.1 §6 Alternative Flow (breach occurring within seconds of the fixed reset_time).

7. Exceptional Flow

Identical to SIM — see UC_4.10.1 §7 Exceptional Flow (market halt during soft lock does not affect the fixed reset_time).

8. Business Rules

BR_4.15.1.1: Soft Lock Overlay — Temporary Until Reset Time

Identical to SIM — see BR_4.10.1.1. No LIVE-specific difference.

BR_4.15.1.2: Account Isolation — Single Asset Class Per Account

Identical to SIM — see BR_4.10.1.2. No LIVE-specific difference.

BR_4.15.1.3: Execution Gateway — Flatten Mechanism (LIVE)

LIVE-specific mechanism, cross-referencing SIM's BR_4.10.1.4. Renumbered as BR_4.15.1.3 (sequential within UC_4.15.1) rather than kept in sync with SIM's numbering.

• When Daily Loss Limit is breached, all open positions are force-closed at market, all working orders cancelled. No retry.
• Futures — Rithmic (LIVE):
  • 'Suspend Trading' via Rithmic Live FCM Gateway (Ironbeam)
• Forex — MT5 (LIVE):
  • API: MT5 Manager API 'Disable/Read-Only'
  • Flatten: C++ MT5 Plugin (Sotatek-built) → flattens positions on the Live Sub Account (ST_LIVE_[ID], routed via YourBourse Bridge, settled at the Omnibus corporate account — Forex.com/Interactive Brokers). Lock (Disable/Read-Only) and Flatten (C++ MT5 Plugin) are 2 separate mechanisms — Disable/Read-Only alone only blocks new orders, it does NOT force-close open positions.
• Forex — TraderEvolution (LIVE):
  • TraderEvolution Admin API 'Lock/Read-Only'

BR_4.15.1.4: Hard Breach Supersedes Soft Breach

Identical to SIM — see BR_4.10.1.5, substituting the LIVE Hard Breach threshold Market_Loss_When_Stopped (Ref: UC_4.15.2) for SIM's Absolute_Stop_Loss. If both Daily_Loss_Limit AND the Hard Breach threshold are crossed simultaneously, emit ONLY LEVEL_STOP_BREACH; DAILY_LIMIT_BREACH is suppressed. Daily Loss Limit alone never terminates an account. Applies to all levels including Level 9+ and Founding Mentor.

9. Screen Description and Business Rules

9.1 Soft Breach Overlay

Identical to SIM — same wireframe, same overlay copy, same field behaviour. See UC_4.10.1 §9.1 (wireframe: Soft breach modal.png — shared between SIM and LIVE, no separate LIVE-specific wireframe exists).

---

Changelog