What is Margin Funding?
Margin Funding refers to the practise of lending out your funds to margin traders to earn & receive interest. For a more detailed overview, see Intro to Margin Funding.
Is this risk-free money?
No. There are a number of risks associated with margin funding, an overview of which can be found here.
How is the return on offered funding calculated?
The return is calculated hourly, at the rate set by the funding provider.
When do I receive my return payment?
Funding payouts are performed every day at 00:00 GMT (even for funds returned earlier in the day). You can visit your Reports page to review your history of payouts.
What is the minimum amount I can use for funding?
The minimum amount is the equivalent of 50 USD. A more detailed overview of the minimum amount in relation to the Auto Renew feature can be found here.
Why was my Margin Funding closed?
There are a few potential reasons your Margin Funding position closed.
1. The duration you specified for your funding expired and your funding was returned to you by the system.
2. The funding taker (borrower) manually closes a position and returns your funds.
3. The trade of the funding taker is liquidated and your funds are returned by the system.
4. The funding taker decides to return your funding without using it.
If a borrower takes your margin funding offer, opens and closes a trade position and subsequently returns your funds, all within 1 hour, interest will be charged to the borrower for that first full hour.
In an effort to dissuade manipulative funding behavior and ensure fair platform use for all, Ethfinex will charge a full days interest to the borrower on any funding that is borrowed and returned without being used.
Can Margin Traders withdraw the funds they are using?
No. The funding a trader takes serves only to open margin positions. The actual funding remains in either the funding providers account, or on the exchange as part of a traders position.
What is the Auto-Renew feature?
The Auto Review feature is an energy-saving tool that allows funding providers to ensure that they are always offering their available funds (and re-offering earnings on their funding).
Auto-renew will automatically offer available funds in your Funding Wallet. This can occur as funding interest accumulates, as a funding term expires, as funds are released by the borrower or by depositing additional funds to your funding wallet.
Can I take back my funding early?
No. Ince funding has been accepted, it can only be closed by the funding taker, or by the system upon expiration. The borrower can return your funds at any time before the maximum lending period ends.
When you provide margin funding, you specify the maximum lending period (2-30 days) for the margin funding to be available to the borrower. If you specify a period of 30 days, the margin funding will only be closed after 30 days have passed, or if the borrower chooses to return your funds early.