Hard Stops are non-negotiable risk controls built into fund mandates or trading systems. They are typically tied to maximum allowable drawdowns, VaR breaches, or other critical thresholds. When triggered, they force the portfolio to cease trading, close positions, or shift into cash. This helps prevent catastrophic loss and reinforces accountability. While Soft Stops allow flexibility, Hard Stops are final. These mechanisms are crucial in systematic trading, allocator agreements, and EP (Equity Protect) overlays, and are often monitored via automated risk dashboards.