Negative wallet balance on Bitfinex

[sunland]

Hello, at 22 dec 2017 there was a flashcrash of IOTA on Bitfinex and Bitfinex has forced a liquidation of my position.I lost thousands of dollars.But now it seems also that I have a NEGATIVE wallet balance of 880 dollar, AFTER that all of my positions are forced to close.

Because on a other forum nobody understand me, I have here an unrealistic example to be so clear as possible:


You have 3 dollar and send this 3 dollar to a margin account of Bitfinex.

You gonne trade with this 3 dollar on margin, what means that you borrow via Bitfinex 7 dollar extra.Now you can trade with 10 dollar.

The price of 1 ITOTA is today 1 million dollar.

There is a flascrash and IOTA goes from 1 million dollar to just 1 cent.

You wake up and you see that you have lost your position of IOTA, you have no open positions anymore.

But not only that; you have a negative margin balance of 1000 dollar!

You are not allowed to trade on Bitfinex anymore, unless you send 1000 dollar to Bitfinex, because Bitfinex was, because the flashcrash, not be able to close your position on time with a forced liquidation.

HOW CAN IT EVER BE that you start with 3 dollar, you see the next mornig that you have lost that 3 dollar because a flashcrash, PLUS the broker (Bitfinex) comes up that next morning with a 'fine' of 1000 dollar??
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In my case: I started with a few hunderd dollar and within a few months I had many thousands of dollars on Bitfinex.To much selfconfidence, to high amount of Iota's, I lost at once everyting.Oke it is MY fault.But I never kwew that you can get a negative margin wallet (880 dollar!)

Is this allowed anyway?I have read now (too late, also my fault) a lot about this but I still dont understand it when I read the policies of Bitfinex.Also because I'm not a native English speaker.

I lost thousands of dollars that I urned of months of trading, but that is simply the risk.To trade again, I accidentally sent 400 dollar of my last money that I can afford to trade to that negative margin wallet (880 negative become now 480 dollar negative), so I'm not able to trade anymore the coming months.And when I ever can afford again a few hunderd dollar, I first have to solve the remaining negative balance(+/- 480 dollar) before I'm allowed to trade by them again.

Is there maby someone who has more knowledge about this then I?To inform me about this before I ask for a ticket by Bitfinex to ask questions about this.

Thanks in advance.

[LoyceV]

HOW CAN IT EVER BE that you start with 3 dollar, you see the next mornig that you have lost that 3 dollar because a flashcrash, PLUS the broker (Bitfinex) comes up that next morning with a 'fine' of 1000 dollar??

You took a loan to gamble, and lost!

Oke it is MY fault.But I never kwew that you can get a negative margin wallet (880 dollar!)

This will depend on their terms. I don't use Bitfinex (or margin trading in general), so I never read them. But it's quite easy to find:

You acknowledge and agree: ~; to be responsible for any negative balance in your account(s) on the Site;

Is this allowed anyway?I have read now (too late, also my fault) a lot about this but I still dont understand it when I read the policies of Bitfinex.

I assume they made you agree to the policies when you opened your account. You should never agree to anything you don't fully understand.

lost thousands of dollars that I urned of months of trading, but that is simply the risk.To trade again, I accidentally sent 400 dollar of my last money that I can afford to trade to that negative margin wallet (880 negative become now 480 dollar negative), so I'm not able to trade anymore the coming months.And when I ever can afford again a few hunderd dollar, I first have to solve the remaining negative balance(+/- 480 dollar) before I'm allowed to trade by them again.

This is where KYC comes in handy: they know who you are, and can come after you to get their money. Many people join crypto for quick profits only, but large profits come with large risks. Crypto markets are heavily manipulated by whales, with only one reason: to get your money.

I don't think this is the right board, you can move it to Trading Discussion.

[sunland]

HOW CAN IT EVER BE that you start with 3 dollar, you see the next mornig that you have lost that 3 dollar because a flashcrash, PLUS the broker (Bitfinex) comes up that next morning with a 'fine' of 1000 dollar??

You took a loan to gamble, and lost!

Oke it is MY fault.But I never kwew that you can get a negative margin wallet (880 dollar!)

This will depend on their terms. I don't use Bitfinex (or margin trading in general), so I never read them. But it's quite easy to find:

You acknowledge and agree: ~; to be responsible for any negative balance in your account(s) on the Site;

Is this allowed anyway?I have read now (too late, also my fault) a lot about this but I still dont understand it when I read the policies of Bitfinex.

I assume they made you agree to the policies when you opened your account. You should never agree to anything you don't fully understand.

lost thousands of dollars that I urned of months of trading, but that is simply the risk.To trade again, I accidentally sent 400 dollar of my last money that I can afford to trade to that negative margin wallet (880 negative become now 480 dollar negative), so I'm not able to trade anymore the coming months.And when I ever can afford again a few hunderd dollar, I first have to solve the remaining negative balance(+/- 480 dollar) before I'm allowed to trade by them again.

This is where KYC comes in handy: they know who you are, and can come after you to get their money. Many people join crypto for quick profits only, but large profits come with large risks. Crypto markets are heavily manipulated by whales, with only one reason: to get your money.

I don't think this is the right board, you can move it to Trading Discussion.

LoycV, I have already found much information about this subject now.People come together in online communities to talk and take action against this sort of things.They come for instance with arguments as that Bitfinex, or an other broker doesn' t inform them well enough about the risk of slippage and that it often is to blame to a ddos attack,poor technical software of the broker etc.Some of them for instance had a balance of more the 100 thousand dollar and within a few minuts they have a balance of more then 30 thousand dollar negative.You are right, be much more informed of the rules in advance and yes, at the end the wales getting their money anyway back in their moneysystem.Thanks for your reaction,I gonne continuing reading about this subject.