Bitfinex Question....

[hybrid_x]

I'm looking to do some longs and shorts on Bitfinex.   

Am I correct in saying:

If I am to go Long ETH/BTC, I have to borrow BTC from their "funding" section.
If I am to go Short on BTC/USD I have to borrow USD from the "funding" section.

It doesn't matter what I store my deposited Value in (USD, BTC, ETH).


Questions:

1)  If my position goes the wrong way, does Bitfinex remove my position and pay back the borrowed funding?
2)  Does the borrowed funding need to be moved from the Funding wallet to the Margin Trading wallet?

Thanks so much.