### Comment:
Pretty much.  As I understand it, they basically allow recursive margin  - ie they take the nominal value of your existing margin bets when calculating the amount of margin they'll extend to you in the future. 
  
 If you're clever about it, you could get nearly infinite leverage.  Of course, deliberately setting out to do something like that probably crosses the line into 'a federal felony', so ymmv.

### REPLY:
Yikes. So how fucked is this guy? I’ve seen some ppl say he’ll be fine and probably won’t have to pay it back because RH shouldn’t have allowed it in the first place but you just made it sound a lot more serious than others

### END.