How To Short Bitcoin
Shorting Bitcoin, in its simplest form, involves profiting from a predicted price decline. Unlike buying Bitcoin (going long), where you profit from price increases, shorting bets against this rise. This strategy can be lucrative but carries significant risks. Understanding these risks and the various methods available is crucial before attempting to short Bitcoin.
Shorting Bitcoin: Implications and Risks
Shorting Bitcoin implies you believe its price will fall. If your prediction is correct, you profit from the price difference between your initial short position and the lower price at which you close it. However, the potential for losses is unlimited because Bitcoin’s price theoretically can rise indefinitely. Unlike a traditional stock, where the maximum loss is limited to the initial investment, shorting Bitcoin exposes you to significant risk if the price moves against your prediction. Furthermore, the volatile nature of Bitcoin makes accurate price predictions exceptionally challenging, increasing the likelihood of substantial losses.
Beneficial Scenarios for Shorting Bitcoin
Shorting Bitcoin can be a beneficial strategy under specific market conditions. For example, if a major regulatory crackdown is anticipated, negative news about a key player in the Bitcoin ecosystem emerges, or a significant technical flaw is discovered, the price might decline substantially. In these scenarios, a well-timed short position could yield significant profits. Consider the period following the collapse of FTX in late 2022; many short sellers profited from the subsequent Bitcoin price drop. Another example could be a period of general market downturn affecting risk assets like cryptocurrencies.
Methods for Shorting Bitcoin
Several methods exist for shorting Bitcoin, each with its own set of advantages and disadvantages. These include using futures contracts, CFDs (Contracts for Difference), and borrowing and selling Bitcoin.
Comparison of Shorting Methods
| Method | Pros | Cons | Suitability |
|---|---|---|---|
| Futures Contracts | Leverage available, regulated exchanges, relatively transparent | Requires understanding of futures markets, margin calls possible, potential for large losses | Experienced traders comfortable with leverage and risk |
| CFDs (Contracts for Difference) | Leverage available, easy to use, accessible through various brokers | High risk due to leverage, potential for regulatory issues depending on broker, spreads can be wide | Traders seeking leverage but accepting higher risk |
| Borrow and Sell | Direct ownership of Bitcoin not required, potential for high returns | Requires finding a lender, high risk due to potential price increases, interest payments on borrowed Bitcoin | Sophisticated traders with access to lending platforms and a high risk tolerance |
Shorting Bitcoin: How To Short Bitcoin
Shorting Bitcoin, the act of profiting from a price decline, can be significantly amplified through leveraged trading. This involves borrowing funds from a brokerage to increase your trading position size, magnifying both potential profits and losses. Understanding the mechanics and inherent risks of leveraged Bitcoin shorting is crucial for any trader considering this strategy.
Leveraged Trading and its Role in Shorting Bitcoin
Leveraged trading allows traders to control a larger Bitcoin position than their account balance would normally permit. For example, a 5x leverage means that for every $100 in your account, you can control $500 worth of Bitcoin. This significantly increases the potential for profit if the price moves in your predicted direction (downward, in the case of a short position). However, it equally magnifies losses if the price moves against your prediction. Leveraged shorting is executed through contracts for difference (CFDs) or margin trading offered by various cryptocurrency exchanges and brokers. These platforms provide the leverage and handle the borrowing aspect of the trade.
Risks Associated with High Leverage in Bitcoin Shorting
High leverage significantly increases the risk of substantial losses. Even a small, unexpected price movement against your position can quickly wipe out your entire trading capital – a phenomenon known as margin call. A margin call occurs when your losses reach a certain threshold, forcing the broker to liquidate your position to cover their exposure. The volatile nature of Bitcoin makes this risk particularly acute. Furthermore, the liquidation process can happen rapidly and automatically, leaving the trader with little or no control. Sudden market crashes or “flash crashes” can exacerbate this risk, leading to substantial losses even for experienced traders.
Hypothetical Trading Scenario Illustrating the Impact of Leverage
Let’s imagine a trader shorts 1 Bitcoin at $30,000 using 5x leverage. This means they control a $150,000 position with only $30,000 in their account. If the price falls to $27,000, the trader realizes a profit of $3,000, which is amplified by the leverage, resulting in a 10% return on their initial investment. However, if the price rises to $33,000, the trader incurs a $3,000 loss, again amplified by the leverage, leading to a 10% loss on their initial investment. This illustrates how leverage can significantly magnify both profits and losses. A smaller price movement can result in a significant percentage change in the trader’s account balance.
Comparison of Leveraged Trading Platforms for Bitcoin
Various platforms offer leveraged Bitcoin trading, each with its own features, fees, and risk management tools. Some platforms may offer higher leverage ratios than others, while others may provide more sophisticated risk management tools, such as stop-loss orders. Direct comparison requires analyzing factors like fees, leverage offered, user interface, available charting tools, security measures, and regulatory compliance. Each platform should be assessed individually based on the trader’s specific needs and risk tolerance. It’s vital to compare the costs of trading, including commissions, spreads, and overnight funding fees, as these can significantly impact profitability.
Factors to Consider Before Using Leverage for Shorting Bitcoin
Before employing leverage for shorting Bitcoin, several crucial factors need careful consideration.
- Risk Tolerance: Understand your own risk appetite and only use leverage levels you are comfortable with. High leverage should only be used by experienced traders with a deep understanding of market dynamics.
- Trading Experience: Leveraged trading is inherently risky and requires a strong understanding of trading strategies, risk management, and market analysis. Inexperienced traders are strongly advised against using leverage.
- Market Volatility: Bitcoin is known for its extreme price volatility. High leverage magnifies this volatility, increasing the chances of significant losses. Thoroughly research market conditions and understand the potential for price swings.
- Platform Fees and Regulations: Compare different platforms, considering fees, regulations, and the security measures in place to protect your funds.
- Stop-Loss Orders: Always use stop-loss orders to limit potential losses. This is a crucial risk management tool that automatically closes your position when the price reaches a predetermined level.
Shorting Bitcoin: How To Short Bitcoin
Shorting Bitcoin, unlike buying it with the expectation of price appreciation, involves betting on a price decline. One of the most common and regulated ways to achieve this is through Bitcoin futures contracts. These contracts allow traders to speculate on the future price of Bitcoin without actually owning the underlying asset. This section will delve into the mechanics of Bitcoin futures contracts and their application in shorting Bitcoin.
Bitcoin Futures Contracts Explained
Bitcoin futures contracts are legally binding agreements to buy or sell a specific number of Bitcoins at a predetermined price on a future date. When shorting Bitcoin using futures, you are essentially agreeing to sell Bitcoin at a future price, hoping that the price will fall below your agreed-upon selling price by the contract’s expiration date. This allows you to profit from the price difference. These contracts are traded on regulated exchanges, offering a degree of security and transparency not always present in other shorting methods. The exchange acts as an intermediary, ensuring the fulfillment of the contract. Unlike spot trading where you need to physically possess Bitcoin, futures contracts allow for leveraged trading, amplifying both profits and losses.
Successful and Unsuccessful Bitcoin Futures Trading Strategies
Successful Bitcoin futures shorting often involves a combination of technical analysis, fundamental analysis, and risk management. For example, a trader might successfully short Bitcoin based on anticipating a market correction following a period of rapid price appreciation. They might use indicators such as moving averages and relative strength index (RSI) to identify potential overbought conditions, signaling a likely price reversal. Conversely, an unsuccessful strategy might involve ignoring fundamental news impacting Bitcoin’s price or failing to adequately manage risk by neglecting stop-loss orders. For instance, a trader shorting Bitcoin might suffer significant losses if unexpectedly positive news, such as regulatory approval in a major market, causes a sharp price surge.
Factors Influencing Bitcoin Futures Prices
Several factors influence the price of Bitcoin futures contracts. These include macroeconomic conditions (e.g., inflation rates, interest rates), regulatory developments (e.g., government regulations, bans), technological advancements (e.g., new scaling solutions, improved security), and market sentiment (e.g., news events, social media trends). The interplay of these factors can lead to significant price volatility in Bitcoin futures, creating both opportunities and risks for traders. For example, increased regulatory scrutiny might lead to a price decline, while the adoption of Bitcoin by a major financial institution could drive prices higher.
Calculating Potential Profits and Losses
Profit and loss in Bitcoin futures trading are calculated based on the difference between the entry price (the price at which the short position is opened) and the exit price (the price at which the short position is closed), multiplied by the contract size and leverage.
Profit/Loss = (Entry Price – Exit Price) * Contract Size * Leverage
For example, if a trader shorts 1 Bitcoin futures contract at $30,000 and closes the position at $28,000, with a leverage of 10x, their profit would be ($30,000 – $28,000) * 1 * 10 = $20,000. However, if the price rises to $32,000, the loss would be ($30,000 – $32,000) * 1 * 10 = -$20,000. It’s crucial to understand that leverage magnifies both profits and losses.
Opening and Closing a Bitcoin Futures Short Position: A Step-by-Step Guide
1. Open an Account: Open an account with a regulated cryptocurrency futures exchange.
2. Fund Your Account: Deposit funds into your trading account.
3. Select a Contract: Choose a Bitcoin futures contract with a suitable expiration date and contract size.
4. Place a Short Order: Submit a sell order to open a short position at your desired price.
5. Monitor Your Position: Track the market price and manage your risk using stop-loss orders.
6. Close Your Position: Submit a buy order to close your short position when your desired price target is reached or when you want to limit your potential losses. This effectively “covers” your short position.
Shorting Bitcoin: How To Short Bitcoin
Shorting Bitcoin, the act of profiting from a price decline, can be achieved through various methods. One popular approach involves the use of Contracts for Difference (CFDs). This section delves into the mechanics, regulatory landscape, costs, risks, and reputable brokers associated with shorting Bitcoin via CFDs.
CFDs: Mechanics of Shorting Bitcoin
A CFD is a contract between a trader and a broker, where the trader agrees to exchange the difference in the price of an asset (in this case, Bitcoin) between the opening and closing of the contract. To short Bitcoin using a CFD, a trader opens a “sell” position, anticipating a price decrease. If the price falls as predicted, the trader profits from the difference between the opening and closing prices. Conversely, if the price rises, the trader incurs a loss. The broker typically provides leverage, allowing traders to control larger positions with a smaller initial investment. This magnifies both profits and losses.
Regulatory Aspects of Bitcoin CFD Trading
The regulatory environment surrounding Bitcoin CFD trading varies significantly across jurisdictions. In some regions, like the UK, Bitcoin CFDs are regulated under the Financial Conduct Authority (FCA), providing a degree of investor protection. Other jurisdictions may have less stringent regulations or none at all. Traders should carefully research the regulatory framework in their region before engaging in Bitcoin CFD trading to understand their rights and protections. The lack of a unified global regulatory standard means that the level of protection and oversight can differ dramatically. For example, CySEC regulated brokers in Cyprus offer a different level of protection compared to those operating in unregulated markets.
Costs and Fees of Bitcoin CFD Trading
Trading Bitcoin CFDs involves several costs. These typically include spreads (the difference between the bid and ask price), commissions (a fee charged per trade), and overnight financing charges (interest paid or received for holding a position overnight). Spreads can vary considerably between brokers and depend on market volatility. Some platforms may offer commission-free trading, but other fees might apply. It’s crucial to compare the total cost of trading across different platforms before selecting a broker. For instance, one broker might have a tighter spread but charge a commission, while another may have a wider spread but offer commission-free trading. The overall cost-effectiveness depends on trading volume and strategy.
Risks Associated with Shorting Bitcoin Using CFDs
Shorting Bitcoin using CFDs carries substantial risks. Leverage, while amplifying potential profits, significantly magnifies losses. Market volatility can lead to rapid and substantial price swings, resulting in significant losses if the trade moves against the trader’s prediction. Furthermore, the margin requirement (the amount of capital required to open and maintain a position) can be subject to change, potentially leading to margin calls, where the trader is required to deposit additional funds to maintain their position. Failure to meet a margin call can result in the forced liquidation of the position at a loss.
Reputable Brokers Offering Bitcoin CFD Trading
Choosing a reputable broker is paramount when trading Bitcoin CFDs. It is essential to consider factors such as regulatory oversight, trading platform functionality, customer support, and security measures. The following is a list of some brokers that are generally considered reputable, but this list is not exhaustive and should not be considered an endorsement:
- eToro
- Plus500
- IG
- AvaTrade
- FXCM
*Disclaimer: This list is for informational purposes only and does not constitute financial advice. Thorough research and due diligence are crucial before selecting a broker.*
Shorting Bitcoin: How To Short Bitcoin
Bitcoin options trading offers a sophisticated approach to shorting Bitcoin, providing leverage and potentially limiting risk compared to directly shorting the cryptocurrency through exchanges. This method allows traders to profit from anticipated price declines without needing to borrow and sell Bitcoin. Understanding the mechanics of options contracts is crucial for successful implementation.
Bitcoin Options Contracts: Puts and Calls, How To Short Bitcoin
Bitcoin options contracts are agreements that grant the buyer the right, but not the obligation, to buy (call option) or sell (put option) a specified amount of Bitcoin at a predetermined price (strike price) on or before a specific date (expiration date). A call option is used to bet on a price increase, while a put option is used to bet on a price decrease. For shorting Bitcoin, the put option is the relevant contract. Purchasing a put option allows you to profit if the Bitcoin price falls below the strike price before the expiration date. The profit is capped at the strike price minus the premium paid, while the maximum loss is limited to the premium.
Hedging Bitcoin Price Declines with Options
Options can serve as a valuable hedging tool against potential Bitcoin price drops. For example, an investor holding a significant amount of Bitcoin might purchase put options with a strike price slightly below the current market price. If the price falls, the put options offset some of the losses on the Bitcoin holdings. The premium paid for the put options acts as an insurance premium, protecting against downside risk. This strategy allows the investor to maintain exposure to potential upside while mitigating potential losses.
Bitcoin Options Pricing Mechanisms
The price of a Bitcoin option (the premium) is determined by several factors. These include the current Bitcoin price, the strike price, the time until expiration (time decay), implied volatility (market expectation of price fluctuations), and interest rates. Options with higher implied volatility tend to be more expensive because they represent greater uncertainty and potential profit/loss. Options closer to their expiration date are generally cheaper than those further out, as time decay accelerates as the expiration approaches. Sophisticated pricing models, often based on the Black-Scholes model (adapted for cryptocurrencies), are used to estimate option prices. These models incorporate the factors mentioned above to calculate a theoretical price, which is then adjusted based on market supply and demand.
Portfolio of Bitcoin Options Strategies for Shorting
A diversified portfolio might incorporate various strategies to profit from anticipated price declines while managing risk. One strategy could involve purchasing put options with different strike prices and expiration dates. This would allow the trader to profit from varying degrees of price decline and time horizons. Another strategy could involve a “bear call spread,” which involves simultaneously buying a put option and selling a call option with a higher strike price. This limits potential losses but also limits potential profits. A third strategy might involve using a “protective put” to hedge an existing Bitcoin position, as previously described. The specific strategy selected depends on the trader’s risk tolerance, market outlook, and capital available. Each strategy has a unique risk-reward profile that should be carefully considered before implementation.
Alternative Methods for Shorting Bitcoin
Beyond directly shorting Bitcoin through futures contracts or CFDs, several alternative strategies allow investors to profit from a declining Bitcoin price. These methods offer varying degrees of complexity, cost, and risk, and understanding their nuances is crucial for informed decision-making.
Inverse Bitcoin ETFs
Inverse Bitcoin exchange-traded funds (ETFs) aim to deliver the opposite performance of Bitcoin’s price. If Bitcoin’s price falls, the ETF’s value rises, providing a straightforward way to profit from a bearish market. These ETFs typically track an index that inversely correlates with Bitcoin’s price. However, it’s important to note that these ETFs often have higher expense ratios than traditional ETFs and may not perfectly mirror Bitcoin’s inverse movements due to tracking error. For example, an investor believing Bitcoin will fall could invest in an inverse Bitcoin ETF, expecting to profit from the ETF’s price increase as Bitcoin’s price declines.
Shorting Bitcoin through Options
Options contracts provide another avenue for shorting Bitcoin. By purchasing put options, an investor gains the right, but not the obligation, to sell Bitcoin at a specific price (the strike price) by a certain date (the expiration date). If Bitcoin’s price falls below the strike price before expiration, the put option gains value, allowing the investor to profit from the price difference. Conversely, if the price remains above the strike price, the option expires worthless. The cost of options contracts depends on several factors, including the strike price, time to expiration, and Bitcoin’s volatility. A real-world example would be an investor purchasing put options with a strike price below the current Bitcoin price, anticipating a price drop before the option’s expiration date.
Leveraged Shorting through Crypto Lending Platforms
Some crypto lending platforms allow users to lend out their Bitcoin and receive interest payments in a stablecoin or another cryptocurrency. This method indirectly offers short exposure, as the borrower’s potential losses offset the lender’s gains from the interest. However, this approach carries counterparty risk—the risk that the borrower defaults on the loan. The interest rate received depends on market conditions and the platform’s risk assessment. The complexity lies in understanding the intricacies of crypto lending platforms and the inherent risks associated with them. For instance, a lender might provide Bitcoin to a borrower expecting to receive a stablecoin interest payment while the borrower uses the Bitcoin for short-term trading, potentially leading to a loss for the lender if the market moves against the borrower.
Bearish Bitcoin Sentiment Indicators
While not a direct shorting method, monitoring bearish sentiment indicators can inform shorting strategies. These indicators might include negative news reports, decreased trading volume, or a drop in on-chain metrics like transaction fees. Observing these signals can help determine opportune moments to execute short positions through other methods. For example, a significant negative news event about a major Bitcoin exchange could trigger a short position using futures contracts or options.
| Method | Advantages | Disadvantages | Complexity/Cost |
|---|---|---|---|
| Inverse Bitcoin ETFs | Easy access, regulated market | Higher expense ratios, tracking error | Low complexity, moderate cost |
| Shorting via Options | Leverage, defined risk | Time-sensitive, can expire worthless | Moderate complexity, variable cost |
| Leveraged Shorting (Crypto Lending) | Potential for high returns, passive income | Counterparty risk, illiquidity | High complexity, variable cost |
| Bearish Sentiment Indicators | Provides timing signals | Indirect, doesn’t guarantee profit | Low complexity, low cost |
Legal and Regulatory Considerations
Shorting Bitcoin, like any financial instrument, operates within a complex legal and regulatory framework that varies significantly across jurisdictions. Understanding these regulations is crucial for mitigating potential legal risks and ensuring compliance. Failure to do so can lead to substantial financial penalties and legal repercussions.
The legal landscape surrounding Bitcoin shorting is still evolving, largely due to the decentralized and relatively new nature of cryptocurrencies. Regulatory bodies worldwide are grappling with how best to classify and regulate Bitcoin and other digital assets, leading to inconsistencies and ambiguities in the legal interpretations across different countries. This uncertainty presents challenges for both individuals and institutions engaging in Bitcoin shorting activities.
Potential Legal Risks Associated with Shorting Bitcoin
The risks associated with shorting Bitcoin extend beyond the typical market risks of price fluctuations. Legal risks stem from the lack of clear regulatory frameworks in many regions and the potential for regulatory changes to impact existing trading strategies. For instance, a sudden ban on cryptocurrency trading in a specific jurisdiction could severely impact the profitability, or even legality, of a short position. Furthermore, the use of unregulated exchanges or platforms to execute short trades exposes traders to increased risks of fraud and scams. The lack of consumer protection in this emerging market further amplifies these risks. Finally, tax implications related to shorting Bitcoin are also complex and vary across jurisdictions, necessitating careful attention to tax laws and regulations.
Relevant Regulations in Different Jurisdictions
Regulatory approaches to Bitcoin shorting differ significantly across the globe. Some jurisdictions have established relatively comprehensive regulatory frameworks for cryptocurrencies, while others maintain a more hands-off approach. The United States, for example, sees ongoing regulatory efforts by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to define and oversee crypto trading activities, including shorting. The European Union is developing its own regulatory framework through initiatives like the Markets in Crypto-Assets (MiCA) regulation. Meanwhile, jurisdictions like Japan and Singapore have implemented specific regulatory frameworks for cryptocurrency exchanges and trading activities, although the specifics concerning shorting may vary. These differences necessitate careful due diligence on the legal framework applicable to any Bitcoin shorting activity.
Examples of Legal Cases Related to Bitcoin Shorting
While specific legal cases directly addressing Bitcoin shorting are still relatively rare due to the nascent nature of the market, cases involving related areas, such as cryptocurrency fraud or manipulation, offer valuable insights. For example, several cases have involved allegations of market manipulation through the use of wash trading or other deceptive practices to influence Bitcoin prices. These cases highlight the potential for legal challenges and enforcement actions related to unethical or illegal trading practices within the cryptocurrency market, including short selling. As the market matures and regulatory scrutiny increases, we can expect to see a growing number of legal cases specifically addressing Bitcoin shorting activities.
Best Practices for Complying with Relevant Regulations
To minimize legal risks associated with Bitcoin shorting, it is crucial to adopt a robust compliance framework. This includes conducting thorough due diligence on the regulatory landscape in the relevant jurisdictions, ensuring that all trading activities comply with applicable laws and regulations, using reputable and regulated exchanges, and maintaining meticulous records of all trades and transactions. Seeking legal counsel specializing in cryptocurrency regulation is highly recommended, particularly for institutional investors or those engaging in large-scale Bitcoin shorting activities. Regularly reviewing and updating compliance procedures to adapt to evolving regulations is also essential for mitigating legal risks and maintaining compliance.
Frequently Asked Questions (FAQ)
Shorting Bitcoin, while potentially lucrative, involves significant risks. This section addresses common questions to help you understand the complexities and make informed decisions. Remember that this information is for educational purposes and not financial advice. Always conduct thorough research and consider your risk tolerance before engaging in any Bitcoin shorting strategy.
Risks Involved in Shorting Bitcoin
Shorting Bitcoin carries substantial risks, potentially leading to significant losses. The highly volatile nature of Bitcoin means prices can fluctuate dramatically in short periods. A sudden price surge can quickly wipe out your initial investment and lead to substantial losses exceeding your initial margin. Furthermore, liquidation risk is a major concern. If the price of Bitcoin rises above a certain threshold (your liquidation price), your position will be automatically closed, resulting in a loss. Another significant risk is the possibility of unexpected market events, such as regulatory changes or security breaches, which can impact Bitcoin’s price unpredictably. Finally, the leverage involved in shorting often magnifies both profits and losses, increasing the overall risk.
Starting to Short Bitcoin
Shorting Bitcoin typically involves borrowing Bitcoin from a brokerage or exchange, selling it at the current market price, and hoping to buy it back later at a lower price to repay the loan and profit from the difference. A step-by-step guide is as follows:
1. Choose a Platform: Select a reputable exchange or brokerage that allows Bitcoin shorting. Consider factors such as fees, leverage options, and user interface.
2. Open an Account: Create an account and complete the necessary verification processes.
3. Fund Your Account: Deposit funds into your account to cover the margin requirements for your short position.
4. Place a Short Order: Specify the amount of Bitcoin you want to short and the price at which you want to sell.
5. Monitor Your Position: Keep track of the Bitcoin price and manage your risk accordingly. Consider setting stop-loss orders to limit potential losses.
6. Close Your Position: When you believe the price has reached its bottom, buy back the Bitcoin to cover your short position and realize your profit or loss.
Best Platforms for Shorting Bitcoin
Several platforms offer Bitcoin shorting services, each with its features and fees. Examples include major cryptocurrency exchanges like Binance and Coinbase, as well as dedicated derivatives exchanges like BitMEX (though note the regulatory uncertainty surrounding BitMEX). Factors to consider when choosing a platform include trading fees, available leverage, security measures, user interface, and regulatory compliance. It’s crucial to research each platform thoroughly before using it, considering user reviews and security audits.
Difference Between Shorting Bitcoin and Other Assets
Shorting Bitcoin shares similarities with shorting other assets but also has unique characteristics. The core principle—borrowing an asset, selling it, and buying it back later—remains the same. However, Bitcoin’s 24/7 trading and extreme volatility create a higher risk environment compared to traditional assets like stocks or bonds. Furthermore, the regulatory landscape for cryptocurrencies is still evolving, adding another layer of complexity and risk. Unlike some traditional markets, Bitcoin shorting might involve higher leverage, leading to amplified potential gains and losses.
Protecting Against Losses When Shorting Bitcoin
Mitigating risk when shorting Bitcoin is crucial. Implementing stop-loss orders is a fundamental strategy. These orders automatically close your position if the price rises to a predetermined level, limiting potential losses. Diversification across different assets can reduce overall portfolio risk. Thorough research and understanding of market trends are essential to make informed trading decisions. Avoid over-leveraging, as it amplifies both potential gains and losses. Finally, only invest what you can afford to lose. Consider practicing with a demo account before using real funds.
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