How you lose the account
Losing an account in these two firms is not only a matter of trading performance but also of compliance with strict operational boundaries.
- Breakout: The account is terminated if you touch the maximum or daily drawdown limits (measured against equity). However, you also risk closure for "soft" violations that the firm considers prohibited strategies: sharing an IP or household with other traders, using third-party or "off-the-shelf" EAs, and any form of copy trading. Strategy switching after passing the evaluation is also a grounds for disqualification.
- Hypernova: Beyond the drawdown breaches, the risk of loss comes from inactivity (3 months without trades) and the use of third-party signals or commercial bots. Unlike Breakout, they explicitly mention that self-built bots are allowed on a single account. Using a VPN to bypass jurisdiction restrictions is a direct path to account closure.
Maximum drawdown
Both firms utilize a static maximum drawdown model, which is generally safer for the trader as the "floor" does not move up with profits.
- Breakout: It is calculated from the starting balance and remains fixed. For a "Classic" $100,000 account with a 6% limit, your floor is $94,000. Even if your balance grows to $110,000, your account will be closed if your equity (including open trades) touches $94,000.
- Hypernova: The logic is identical but the percentages vary by plan. In a "Standard" $100,000 account with a 7% limit, the floor is $93,000. In a "Precision" account, the limit is much tighter at 3% ($97,000 floor).
Daily drawdown
This is the most common trap for traders. Both firms recalculate this limit daily, but at different times and with slight nuances in how they handle payouts.
- Breakout: Recalculated at 00:30 UTC based on the closed balance. It is monitored against equity.
- Numerical Example: You have a $100,000 account with a 3% daily limit ($3,000). You end the day with $102,000 in closed balance. Your new daily limit for the next day is $3,060 (3% of $102k), meaning your equity cannot drop below $98,940 that day.
- Hypernova: Recalculated at 00:00 UTC based on the balance at that time.
- Numerical Example: On a $50,000 account with a 4% daily limit (Standard), your loss budget is $2,000. If you have an open floating profit that you don't close before midnight, it won't increase your loss budget for the next day, as the limit is based on the closed balance.
Rules beyond drawdown
Risk is also hidden in the fine print of execution and position management.
- Breakout:
- Hedging is only allowed within the same account and only if the position already has substantial profit/loss.
- No mandatory stop loss.
- Strict prohibition on copying ideas from social media, analysts, or signal groups.
- Maximum capital allocation is capped at $200,000.
- Hypernova:
- Includes an inactivity rule: 3 months without trading results in a frozen account.
- Hedging is allowed within the same account in hedge mode, but prohibited across different accounts.
- No mandatory stop loss.
- Maximum capital allocation is higher, reaching $300,000.
Risk that comes from the setup
The technical environment dictates how much "slippage risk" you carry. Since both firms use proprietary terminals instead of MetaTrader, you are bound to their specific execution engines.
- Breakout: Uses a proprietary engine with order book liquidity from external exchanges. This means that in highly volatile moments, your "simulated" fill might experience slippage similar to a real market, which can push your equity into drawdown faster than expected.
- Hypernova: Uses market data from Hyperliquid. It is a simulated environment where orders are not routed to the exchange. The risk here is the "simulation exploit" rule: if the firm deems your strategy exploits the lack of real market impact, they can close the account.
What is at stake and what you recover
The primary risk is the evaluation fee, as neither firm offers a refund of the initial payment.
- Breakout: Fees range from $20 (Turbo $5k) to $1,090 (Pro $200k). You can recover your stake through payouts, which are available on demand 24/7 from the very first day of being funded. There is no minimum waiting period, but there is a minimum withdrawal of $50.
- Hypernova: Fees range from $25 (Precision $5k) to $1,950 (Conservative $200k). Payouts are also on demand 24/7 with settlement in seconds. A unique risk factor here is that Hypernova is a very young firm (founded in 2025), which carries more counterparty risk compared to Breakout, which is owned by the established exchange Kraken.
Frequently asked questions
Which firm offers a cheaper entry for a $50,000 account, Breakout or Hypernova?
Breakout is significantly cheaper for this size. Its "Turbo" $50,000 account costs $180, whereas the most affordable $50,000 option at Hypernova (the "Precision" plan) costs $200. If you look at the "Standard" or "Conservative" plans at Hypernova, the price jumps to $675 or $500 respectively, making Breakout the more budget-friendly choice for starting capital.
Between Breakout and Hypernova, which one has more restrictive rules for using EAs?
Breakout is more restrictive as it prohibits all third-party or off-the-shelf EAs and any "pass-the-evaluation" commercial strategies. Hypernova allows self-built bots and proprietary strategies on a single account, although it also bans third-party signals. Furthermore, Breakout's proprietary terminal does not support standard MetaTrader EAs, adding a technical barrier to automation that Hypernova also shares.
Does Breakout or Hypernova offer a higher maximum capital limit for a single trader?
Hypernova offers a higher maximum allocation of $300,000 across assessments and funded accounts. Breakout limits the combined capital of all active accounts to $200,000. Therefore, traders looking to manage the largest possible amount of capital under a single firm will find more room to grow with Hypernova.
Which firm provides more flexibility for withdrawals, Breakout or Hypernova?
Both firms are highly competitive and offer 24/7 on-demand payouts. However, Hypernova has a slight edge in flexibility because it has no minimum withdrawal amount (the account just needs to be in profit), while Breakout requires a minimum of $50 after the profit split. Breakout pays in USDC (ERC-20), while Hypernova uses USDC via Arbitrum and covers the gas fees.
