Can an account balance become negative?

When the market opens, if the price of the tokenised asset for which a leverage-operation is initiated changes sharply and significantly, a situation may arise where the leverage-operation will end with an unexpected loss and the wallet's figures will reach negative values.

In order to restore the resulting negative balance on the cryptoplatform, there is a Negative Balance Protection mechanism whereby the negative balance is eliminated by charging the required amount of tokens to your account, bringing your wallet figures to 0. This way, you will not lose more funds than you had in your account before the operation was opened.

Was this article helpful?
4 out of 4 found this helpful
Have more questions? Submit a request

Comments

0 comments

Article is closed for comments.