What Happens from a Funds Manager Perspective
When your managed funds pool (master trading account) reaches a negative balance, the system automatically initiates several processes that directly impact your funds operations:
Automatic Actions Taken:
Funds Termination: Your funds will be automatically terminated regardless of your intention to continue operations
Forced Position Closure: All open trading positions will be forcibly closed by the system
Investor Relationship Termination: The system automatically terminates all investor relationships with your funds and notifies them of the forced redemption
What You Cannot Do
Cannot Inject Capital: You cannot add personal funds to the funds account to cover the negative balance, as funds capital belongs to the investor collective
Cannot Continue Using the Funds: Even if you wish to continue operations, you cannot recover funds that have entered negative balance
Cannot Retain Existing Investors: All investor relationships will be forcibly terminated by the system
What You Can Do
Receive System Notifications: You will receive an email notification regarding the funds termination
Contact Platform Support: Discuss the situation with the platform's funds management team via Live Chat
Establish New Funds: If you wish to continue as a Funds Manager, you need to establish entirely new funds
Adjust Trading Strategy: Analyze the causes of the negative balance and adjust your risk management and trading strategies
Communicate with Investors: Proactively communicate with former investors, explain the situation, and invite them to join your new funds (if you decide to re-establish)
Impact on Your Reputation
Funds entering negative balance may affect your reputation and credibility as a Funds Manager
The platform may record this incident, potentially affecting your future funds management activities
Investors may develop negative opinions due to capital losses