Hi there 👋
The simplest way to correct a negative balance is to compensate it.
Here's everything you need to know about negative balance compensation:
What happens when you compensate?
A compensatory deposit is a deposit equivalent to the maximum amount of negative balance encountered on a token and platform created at a date prior to that of the first transaction detected as negative balance on that token and platform.
In other words, it's a deposit created to replace potential missing transactions.
Should I compensate directly?
No, before compensating for negative balances, we encourage you to understand the 3 reasons that justify a “negative balance” warning, here in our dedicated article. This corrects the majority of cases.
Compensating is a method of last resort.
What are the consequences of a compensation?
As a reminder, there are 3 reasons for a negative balance warning:
To find out whether you're in situation 1, 2 or 3, look at your stock sheet.
How to compensate?
You can offset all negative balances in step 2 of the analysis: negative balances.
Click on “Compensate”:
In order to provide the best possible justification for compensating deposits, you now have the option of adding a description to them:
Here are some examples of negative balance compensation:
You deposit 1 000 USDT on Binance on 01/01/2021
You withdraw 2,000 USDT on Binance to send it to KuCoin on 02/01/2021
⚠️ You will therefore encounter a shortfall on 01/01/2021 on Binance of an amount equivalent to 1,000 USDT. In other words, when withdrawing 2,000 USDT, you will be short 1,000 USDT in inventory. This transaction is impossible.
→ If you consider that you have indeed owned the 2,000 USDT at the time of the withdrawal on 02/01/2021, you should compensate.
You deposit 1,000 USDT on Binance on 01/01/2021
You withdraw 2,000 USDT from Binance and send it to KuCoin on 02/01/2021
You deposit 5,000 USDT on KuCoin on 03/01/2021
You withdraw 10,000 USDT on KuCoin on 04/01/2021
⚠️ So you will encounter two negatives balances: still one of 1,000 USDT on Binance (which we already had in example 1) and the other of 3,000 USDT on KuCoin. So an overall negative balance of 4,000 USDT.
→ If you consider that you have indeed owned the 2,000 USDT on Binance and the 10,000 USDT on KuCoin, then you should also compensate.
If you have any other questions, do not hesitate to contact us via the chat just at the bottom right of your screen! 💬
The Waltio team