Bitfinex lending
If a trader's position is at a loss, he will cover the loss with funds bitfinex lending his Margin Wallet. Up to a certain point, we will cover the losses from our own reserves; however, if the price would change so bitfinex lending that the majority of all margin positions would drop below zero, losses eventually will be shared with margin funding providers. Our margin funding feature goes hand in hand with margin trading.
How is the return on offered funding calculated? Articles in this section What is Margin Funding? Bitfinex lending can enter offers with your own chosen terms return rate, duration, and amount.
The position will be force-liquidated: The bitfinex lending in the Margin Wallet serve as collateral only. See more Our margin funding feature goes hand in hand with margin trading. Articles in this section What is Margin Funding? What is the "Flash Return Rate"?
The position will be force-liquidated: When the trader completes a trade by closing the position, bitcoins are bought or sold back and the money is returned to your wallet. A trader's position is force liquidated when the net value of his account falls below the maintenance margin. Articles in this section What is Margin Funding? How is the return on offered funding calculated?
See more The risks are low due to the design of our underlying risk-limiting engine. What is the difference bitfinex lending offering funding on a "daily" or "term" basis? If you are not a trader and prefer safer investments, this feature bitfinex lending for you.
When the trader completes a trade by closing the position, bitcoins are bought or sold back and the money is returned to your wallet. Note that these numbers will vary a bit due to fees and bitfinex lending payments. We have bitfinex lending the following steps to prevent funding providers from losing money:
What is the minimum amount for offering funding? How are interest and fees calculated when offering margin funding? What is the "Flash Return Rate"?