A negative USDT balance can occur in your Flipster account due to losses from trading positions under Cross Margin with Multi-Asset Collateral. This article explains why this happens, how to resolve it, and the steps to unblock withdrawals.
Why Your USDT Wallet Shows a Negative Balance
A negative balance usually occurs due to trading losses, particularly when using Cross Margin accounts with multi-asset collateral.
Key points to know:
- The negative balance is exclusive to the USDT wallet. Other wallets cannot go negative.
- Auto-exchange triggers if your USDT balance is ≤ -5,000 USDT and you have supported collateral in your account. Supported collateral includes:
- BTC
- ETH
- USDC
- PUSDT
- Trading Bonus
If your account does not have supported collateral, your USDT wallet will remain negative until you take corrective action.
How to Resolve a Negative USDT Balance
There are two ways to recover your USDT balance, depending on whether auto exchange is triggered.
1. Auto Exchange (Automatic Conversion)
If your USDT balance is ≤ -5,000 USDT and you have supported collateral:
- Flipster will automatically convert your collateral into USDT to offset the negative balance.
- Once the conversion is complete, your USDT balance will return to normal, and withdrawals will be unblocked.
If auto exchange does not trigger, see the manual options below.
2. Manual Resolution
If auto exchange does not trigger (balance not ≤ -5,000 USDT or insufficient collateral), you can recover your USDT balance manually:
Option A: Convert Supported Assets to USDT
- Go to your Wallet page.
- Select the asset you want to convert (BTC, ETH, USDC or PUSDT).
- Choose Convert to USDT and confirm.
This will increase your USDT balance and reduce or eliminate the negative amount.
Option B: Deposit USDT from an External Wallet
- Go to your USDT Wallet.
- Click Deposit.
- Follow the instructions to transfer USDT from an external wallet to your Flipster account.
After the deposit, your negative USDT balance will be cleared, and withdrawals will be enabled.
Important Notes About Withdrawals
Even if your USDT wallet is negative, withdrawals are not completely blocked. However, the available withdrawal amount will depend on the remaining value of your collateral after accounting for the negative USDT balance.
Note: Collateral Value Ratio still applies. This means that only a portion of your collateral’s value may be available for withdrawal after accounting for these risk adjustments.
For more information, refer to [Collateral Value - insert link].
Example: Withdrawal with Negative USDT Balance
Suppose a user has the following account balances:
- USDT: -1,000 USDT
- BTC: 0.5 BTC (equivalent to 10,000 USDT)
- ETH: 2 ETH (equivalent to 4,000 USDT)
Scenario: Withdrawal Request
The user wants to withdraw some of their assets.
- Calculate collateral available after negative USDT:
- Negative USDT = -1,000 USDT
- Effective collateral available =
- BTC: 10,000 – (portion covering negative USDT) ≈ 9,000 USDT
- ETH: 4,000 USDT (fully available)
- Resulting withdrawal options:
- The user can withdraw 9,000 USDT worth of BTC
- And 4,000 USDT worth of ETH
The negative USDT reduces the effective withdrawal amount from the first asset used to offset it. Withdrawals proceed based on remaining collateral after accounting for the negative balance.