Can you get a negative balance on Bybit futures?

Understanding Negative Balances in Bybit Futures

A negative balance on Bybit Futures occurs when your equity in a futures position falls below zero due to adverse price movements and insufficient margin to cover losses. This typically happens during extreme market volatility or when leverage is high. Unlike spot trading, futures involve contracts with margin requirements, and if the market moves sharply against your position, your available balance can dip into the red. Bybit uses a risk management system called the Insurance Fund to prevent most negative balances, but it doesn’t eliminate the possibility entirely.

How Bybit Handles Liquidation

When your position approaches the liquidation price, Bybit triggers a liquidation mechanism to close your trade automatically. This process aims to prevent further losses that could lead to a negative balance. During liquidation:

• Your position is closed at the mark price or last traded price, depending on the market conditions.
• If the liquidation doesn’t fully cover the loss—such as in a flash crash or slippage—the remaining deficit may result in a negative balance.
• In such cases, Bybit’s Insurance Fund usually absorbs the loss first. However, if the fund is insufficient or depleted, your account balance can go negative.

  Steps to Check Your Balance and Avoid Negatives

  To monitor and prevent a negative balance:
• Navigate to your Bybit Futures account dashboard and review the 'Equity' section under your positions.
• Set up stop-loss orders manually or use the built-in 'Take Profit / Stop Loss' feature when opening a trade.
• Enable margin level warnings in your account settings to receive alerts when your margin ratio approaches dangerous levels.
• Regularly check your Maintenance Margin requirement for each open position—it tells you the minimum equity needed to keep the position open.

  What Happens If You Go Negative?

  If your Bybit Futures account balance becomes negative:
• You will see a red balance displayed in your wallet (e.g., -0.002 BTC).
• Bybit may deduct the amount from future deposits you make into the same account.
• In rare cases, especially during extreme market events like a 20% drop in minutes, Bybit may issue a negative balance recovery notice via email or in-app alert.
• You remain responsible for repaying the negative amount before withdrawing funds or opening new positions.

  Manual Steps to Recover a Negative Balance

  To resolve a negative balance:
• Deposit funds into your Bybit Futures wallet using the 'Deposit' button in the wallet section.
• Choose a supported cryptocurrency (e.g., USDT, BTC) and send the exact amount needed to bring your balance to zero or above.
• After depositing, go to the 'Assets' tab and confirm the negative value has been cleared.
• Avoid opening new positions until your balance is positive to prevent further risk exposure.

  Common Misconceptions About Negative Balances

  Many users assume Bybit will always cover negative balances using the Insurance Fund. While this is often true, it’s not guaranteed. The fund only steps in when liquidations fail to close positions at fair prices. If multiple users are liquidated simultaneously during a market crash, the fund may not cover all deficits. Also, cross-margin mode increases the risk of negative balances because your entire wallet balance acts as collateral. Isolated margin, by contrast, limits losses to the allocated margin per position, reducing the chance of going negative.

  Frequently Asked Questions

  Can I withdraw funds if my Bybit Futures balance is negative?No. Bybit blocks withdrawals until the negative balance is cleared. You must deposit enough funds to bring your balance to zero or higher before initiating any withdrawal.

  Does Bybit charge interest on negative balances?No. Bybit does not apply interest to negative balances. However, you must repay the full amount before accessing your account normally again.

  Will I get banned from Bybit if I have a negative balance?No. A negative balance does not result in account suspension or banning. Bybit treats it as a debt to be settled within the same account.

  Can I ignore a negative balance and open a new Bybit account?No. Bybit ties negative balances to your account UID. Even if you create a new account, the original negative balance must be resolved before full functionality is restored across all your Bybit accounts.