The risks are low due to the design of our underlying risk-limiting engine. We have bitfinex lending risk the following steps to prevent funding providers from losing money: If a margin trader's position is at a loss, he will cover the loss with funds in his margin trading wallet. The funds in the margin trading wallet serve as collateral. The position will be force-liquidated: Note that these numbers will vary a bit due to fees and bitfinex lending risk payments.
In theory, these measures could still cause margin traders to lose more than the funds they bitfinex lending risk in their account as collateral. Up to a certain point, we will cover the losses from our own reserves; however, if the price would change so dramatically that the majority of all margin positions would drop below zero, losses eventually will be shared with margin funding providers.
This has never happened in the existence of our platform, but in theory, it could happen. Providing liquidity in margin funding is not risk-free; however, bitfinex lending risk rates are typically far higher than you bitfinex lending risk at through a typical savings account. In the end, it's up to the user to weigh this risk and gains. Bitfinex Knowledge Base Margin Funding. Bitfinex lending risk in this section What is Margin Funding?
What is the difference between offering funding on a "daily" or "term" basis? What is the minimum amount for offering funding? How are interest and fees calculated when offering margin funding? What are the risks associated with offering funding?
How is the return on offered funding calculated? When do I receive my return payment? What is the "Flash Return Rate"? What is the "FRR Delta? See more The risks are low due to the design of our underlying risk-limiting engine. If a trader's position is at a loss, he will cover the loss with funds in his Margin Wallet. The funds in the Bitfinex lending risk Wallet serve as collateral only. A trader's position is force liquidated when the net value of his account falls below the maintenance margin.
I think the absolute minimum to get the best out of Profittrailer is 0. This way it spreads the buys and usually gets a better price on average. Website Report Abuse Additional Information Version: 3.