deadfi$h
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January 17, 2014, 05:26:30 AM

and you can lend coin or cash sitting in your account to traders for 10-30% return per month.
How safe is that money? How is repayment enforced? I still haven't gotten around to looking into Bitfinex.

The money is only used for margin accounts so they can force close any open positions with a margin call if th margin balance goes too low. Bitcoin is loaned for shorters, cash for long positions. I haven't lent any money myself but have borrowed plenty. I guess you can pay part of your percentage return into an insurance pool so that if there is a catastrophic market crash and they can't close margin positions fast enough, then you would be covered of any potential loss.

It's great as a trader though because they offer 2.5:1 leverage (or 4:1 if you're grandfathered in) so you can stretch your money a bit farther on fast trades. The exchange is linked to Bitstamp so you can trade on Stamp for .35% or Finex for .15% or less depending on volume.