Quote from: countryfree on June 06, 2019, 11:43:14 PM

https://medium.com/circle-trader/overview-of-btc-margin-lending-pool-losses-a2f0905aaa56

Scary. I used to think lending money on Poloniex or Biftinex was safe. Not anymore.

Quote

Today, we recognized the generalized loss across lenders in the BTC margin lending pool. As a result, the principal of all active BTC loans as of 14:00 UTC today has been reduced by 16.202%.

So, if you were lending money on Poloniex, you've lost 16.202% of it... Man, that hurts!

This will likely push interest rates on other lending platforms up as well, given the fact that the market is now given a lot more awareness about how potentially risky their investments are, while they previously thought it was something that was risk free.

I'm surprised that Polo isn't offering to at least compensate in some way, though, given the fault is probably partially on them for offering margin trading on illiquid markets anyways.

I doubt their 'debt recovery' will go that well anyways. It's probably extremely difficult to get anyone, especially people with high amounts invested at the time to pay back their dues, especially when their positions should have automatically closed in the first place.