Topic: [OFFICIAL]Bitfinex.com first Bitcoin P2P lending platform for leverage trading - page 341. (Read 723990 times)

I would much rather trade 1:1 than 2:1.  

Trade fees and loan interest take up a significant portion of your gains at 2:1 but your losses are still accelerated.

I feel like the advantages of leverage are lost at 2:1 but the risks are still there.

I mean, I do agree with the better safe than sorry approach, especially with everything that has gone on in the last month.  Maybe they could play with the leverage and margin requirements and come up with a better happy medium.

The obvious risk is a flash crash forcing margins.  Is there enough liquidity with the internal exchange and bitstamp.  I don't leverage trade very often and for the most part I am a lender.  I don't like the sounds of lenders not wanting to use the site anymore, but I don't fully understand the logic, while it may limit potential profit it's still better than trading 1:1 direct on the exchanges.

Are there other sites where you can get greater than 2:1 leverage?

IMO BFX would not have made this change unless they deemed it necessary.  It is obviously going to lose them business.

So the question is, why is it necessary?

I'm not worried about the change itself, but it does make sense to let the traders make the risk call.

2:1 isnt worth my time, too much risk and not enough reward...  Ive been BFX trader since the very early days, it would be sad to no longer trade on BFX.

Please fix this.  Perhaps allow grandfathered accounts a higher leverage setting?

EDIT:  Anyway BFX can calm my insolvency worries?  This change doesnt smell good...

Hello everyone,


I'm using NoScript too so I was a bit bothered when the new front-end was delivered. I will see what I can do, although I do think it's safe if you authorize googleusercontent scripts, unless you really don't want anything google (which I can understand).

Thanks


We don't promise everything, although yes, I would be good to have at least one more exchange

About the leverage restrictions, traders are already less leveraged than in April so I'm quite confident, previous crashes from last month went smoothly (not sure about the correction either, at least not at this low price). But better safe than sorry. Although loans are uninsured by default, we don't want lenders to suffer a loss in fact

I don't think the demand for USD went down, it's more the offer that got really abundant this time.

Anyway, have a good day all
Raphael
Bitfinex team

Well, might as well be the first to say it:

I don't like it.

I remember, the first time when I read about bitfinex, the maximum leverage advertised was 5:1. In fact, there are still places on bitfinex where that ratio is mentioned, e.g. here.

When I finally signed up a few weeks ago, the 5:1 ratio already wasn't available anymore. Fine, I though, maybe too risky for such a volatile market. But now you're reducing it further, and I simply don't see why.

We already have the distincion between "insured" and "uninsured" loans, so the lender are aware (or should be aware) that, in the worst case, they might lose some or most of their money.

Why decide *for us* that it is too risky if, effectively, bitfinex doesn't need to participate in the risk anyway?

...

Okay, and here's my biggest gripe: The justification is: "due to the recent market performance we believe a correction is due, sooner or later."

What the hell?

Would you please let *us*, the traders decide if we think we're in a for a correction or not?

Seriously, I've only had positive experiences on my (short) time on bitfinex now, but this is the first time I'm officially miffed.

I really, really don't want my exchange telling me that "we're in for a correction, so we're taking things back a notch."

Hope you can understand where I'm coming from. I understand where *you* are coming from (security > profit, you've said so several times), but with that decision, and especially the *justification* of that decision, you went to far in your goal to put security before profit, IMO.

I'm not as sure about the correction but better to be safe then sorry.  I know that bitfinex used to be able to relay through GOX, but it had to be stopped because of the timing with money etc..

What about introducing it again but as a sell only option and only IF BTC drops X % in an hour.  It would just be an added layer of security in the case of a flash correction.  Any other exchanges on the horizon.

Thanks!

A reasonable measure.
It would be cool if there would be a volatility measurement that the platform adapts itself to (margin trade in the end is just a way to increase volatility).

On the other hand this sucks even more for USD providers - just look at their returns at the last bubble and this time! Now demand for USD will go down even more...

As a lender, I realize this might decrease demand for loans, thereby potentially lowering interest rates, but I think this is a very sensible move, and I am very happy you are doing this.  Keep up the good work bitfinex !

Dear Customers

due to the recent market performance we believe a correction is due, sooner or later.
We don't know whether the price will touch 500$ or 1.000$ or even go higher ( we all hope so) before that.
What we know for sure is that the total amount of leveraged positions is getting bigger and bigger.
On one hand we love that, but on the other hand we understand risk and we decided to limit the maximum leverage to 2:1 for the time being.
Only new orders will be effected, leveraged positions already in place will not be subject to any change.
We do that in order to preserve our activity, but also the one of our traders.
Last but not least the big april market crash is only 7 months away and we try to learn from our mistakes.
If the volatility comes down, we will put leverage back to where it was.

I hope you have all a good trading day

Giancarlo
Bitfinex Team

Chech the history ledger (click on your user name in the top right corner). I guess amounts are rounded for display reasons but it is (finally!) showing all 8 places in the ledger.

I lend 8 Bitcoins on Bitfinex and got it back after 2 days for 2%. (in year), but my balance is still the same (should be like ~0.005 more).

The balance shown on the website has only two zero coma provide, anyone knows how I can change that?

3 confirmations....

how long does identity verification take?

How many confirms are required before deposits are clear to trade on?

I think they will eventually bring one in, but I agree, even just to add a bit more liquidity and do a test run throw 10K at one and see how it goes.

Well, when I asked about Kraken, there was the chicken/egg response that it has not a lot of depth while trading there would probably improve depth...