Just another way for them to legally scam and steal from their users, even if you verified they reserve the right to downgrade you and keep your coins
By agreeing to our Terms, you acknowledge and understand that Poloniex maintains verification levels which require user participation and verification in order to obtain, with leveled permissions based on user-supplied information, our ability to verify it, and our internal policies. You accept that you may not be able to achieve a desired level of verification, and Poloniex reserves the right to determine, at its sole discretion, the appropriate Verification Level for any user, as well as the right to downgrade users without prior notice. Poloniex may, from time to time, implement policies restricting Verification Levels by nationality, country of residence, or any other factor. This may affect your ability to withdraw funds in your account and you indemnify Poloniex against any losses associated with an inability to deposit and/or withdraw funds based on your verification level.
and margin trading and lending on a site that provides no proof of its funds = potential for fractional reserve and abuse by exchange against its user in markets as it effectively is able to lend more bitcoin then they own in attempt to cash in on interest repayments. Anyone thinking they can make money lending here is going to find themselves competing with the exchange itself which can offer infinite bitcoins at any rate they choose. Because they dont have to prove the bitcoins exist, poloniex can mix in their own loan offers with the real ones from users and effectively make money with no risk at all.
