terms are not enforceable in court where they contradict the law. so the question of jurisdiction is crucial here. like countryfree said, haircutting balances with a generalized loss is 100% illegal in the USA, where poloniex is organized. but IANAL and i dunno if they've dodged a bullet by restricting USA customers from this market. if so, what laws apply here? EU? various local laws where lenders reside?

i wouldn't be surprised if the EU offered similar protections to the USA but i have no idea where to start researching the law.