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Negative Balance Impact on Your Funds Investment

Updated this week

What Happens from an Investor Perspective

As a funds investor, when the total account balance of the funds you subscribed to becomes negative, you will experience the following changes:

Automatic Actions Taken:

  • Forced Redemption Notice: You will receive a system-generated forced redemption notification email

  • Zero Redemption Amount: Due to the negative total funds balance, your redemption amount will be 0

  • Investment Loss: Your initial investment capital will be completely lost and cannot be recovered

  • Investment Relationship Termination: Your investment relationship with the funds is automatically terminated by the system

  • Account Status Change: Your investment record will show that the funds has been forcibly redeemed with a redemption amount of 0

What You Cannot Do

  • Cannot Continue Holding the Funds: Even if you wish to continue investing, the system will forcibly terminate your investment relationship

  • Cannot Partially Redeem: You cannot choose to redeem only part of your funds; the system will forcibly redeem the entire investment

  • Cannot Recover Any Investment: Since the funds already has a negative balance, you cannot recover any of your initial investment amount

What You Can Do

  1. Review Redemption Notice: Carefully read the forced redemption notification email sent by the system

  2. Understand Loss Causes: Learn why the funds entered negative balance through the platform or by contacting the Funds Manager directly

  3. Consider Other Investment Options: You can choose other funds on the platform for investment

  4. Wait for Funds Manager to Re-establish: If you still trust the Funds Manager, you can wait for them to establish new funds

  5. Contact Customer Support: If you have questions, contact platform customer support via Live Chat for more information

Impact on Your Investment

  • Your investment in this funds will be completely lost

  • This experience may affect your future investment decisions and risk management strategies

  • You need to reassess your investment portfolio and risk tolerance

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