Warning: don't deal with 796.com!

[yellowbrickroad]

796.com is a Hong Kong based exchange where you can trade BTC and LTC futures.

My own experience:
I have been using this service for more than 1 year.

2 weeks ago I've bought LTC at ~$5.00, have sold and opened short position at ~$6.00, and closed short position at ~$4.5 (on July 11)
my net profit was ~550 LTC (I've shorted LTC futures to hedge my LTC holdings on another exchange, to compensate my losses due to LTC price decline).

I have seen this profit on my account balance but it has disappeared soon.
when I've contacted support, they told me they have "socialized" 73.97% of profit of their users because LTC price moved violent last week.

https://796.com/ltcFutures/settle?lang=en here you can see that 796 guys have "socialized" or maybe "expropriated" 73.97% of profit of their users on July 11 and ~45.1% on July 4.

Is it legal? Have you ever experienced something like that with btc-e or other exchange margin trading?

Is there any scam list to add this service?

[unusualfacts30]

damn

[BTT]

796.com, as okcoin, encounters largest system loss due to strong volatile price! It is aiming to mitigate the loss of users and their platform! Bitcoin related startups are not regulated and they can do whatever they like! The measures taken by them is not fair for the winners! The platforms should take the responsibility!

[choochimil]

Scary stuff. As much as possible I try to use services from the country I live, at least you have the possibility of legal recourse.