Will DigiFinex contract margin be refunded?

In the event of platform issues or system errors, DigiFinex may issue margin refunds to eligible traders who incur losses due to no fault of their own.

Nov 26, 2024 at 11:16 am

Will DigiFinex Contract Margin Be Refunded?

1. Understanding Contract Margin on DigiFinex

On DigiFinex, traders can utilize contract margin to amplify their trading positions and potentially enhance profits. By leveraging margin, traders borrow additional funds from the exchange, allowing them to trade with larger capital than they initially deposited.

Contract margin is typically expressed as a ratio, such as 10x or 20x. A 10x margin, for example, means that a trader can control a position worth up to ten times their deposited margin. This leverage magnifies potential gains but also amplifies potential losses.

2. Circumstances Leading to Margin Refund

In certain circumstances, DigiFinex may initiate a margin refund to traders. This is primarily done in the event of unforeseen platform issues or system errors that result in traders losing funds due to no fault of their own.

For instance, if a technical glitch occurs during a trading session, causing traders to enter or exit positions at significantly unfavorable prices, the exchange may consider issuing margin refunds to mitigate potential losses incurred by users.

3. Eligibility for Margin Refund

Not all traders are eligible for margin refunds. Typically, refunds are only issued to traders who can demonstrate that their losses were directly caused by platform issues or system errors beyond their control.

Traders seeking margin refunds must provide detailed evidence of the errors encountered, such as screenshots or trading logs. The exchange will review the evidence and make a determination on eligibility.

4. Process for Claiming Margin Refund

Traders who believe they are eligible for a margin refund should contact DigiFinex support promptly. Detailed instructions on submitting a request for review will be provided by the support team.

In the request, traders must clearly outline the circumstances surrounding their losses and provide supporting documentation. Incomplete or insufficient documentation may delay or hinder the review process.

5. Resolution Timeline and Payment

The time taken for DigiFinex to resolve margin refund requests varies depending on the complexity of the case. The exchange will endeavor to process requests as efficiently as possible.

If a trader's request for a margin refund is approved, the refund amount will be credited to their DigiFinex account. The timeframe for payment will be communicated to the trader during the resolution process.

6. Additional Considerations

It is important to note that margin refunds are not guaranteed and are granted at the sole discretion of DigiFinex. The exchange may consider factors such as the severity of the loss, the impact on the trader, and the overall circumstances of the incident.

Traders should carefully review the terms and conditions of contract margin trading on DigiFinex to ensure they fully understand the risks involved and the potential for margin refunds.