It depends which limit you hit.
The daily loss limit is a soft breach.
Your open positions are closed and trading is paused for the rest of the trading day. It resumes automatically on the next trading day, and your account is not closed. A daily loss limit applies to EOD funded accounts, to Sprint in both phases, and to Instant Classic. Flex has none.
The maximum drawdown is a hard breach.
If your balance or equity falls to or below your drawdown floor, the account is closed immediately. This applies in both the evaluation and funded phases, on every plan.
A breached evaluation account can be reset up to twice. A breached Instant Classic account cannot be reset. Funded account resets are available on EOD 50K and 100K accounts only, before your first payout.