The XRP Ledger has something called "reserves": a certain amount of XRP is "locked up" by the XRP Ledger for account ownership & object ownership (like Trust Lines, to hold tokens, Escrows, Offers, etc.). Read more about reserves here:
What is (and how much is) the XRP ledger account reserve?
It is possible to be below the reserve requirement: the XRP Ledger does not enforce the reserve for the first two Trust Lines created (tokens held) and the reserve can be spent on on ledger fees. If this happens, your account reserve can result in a negative spendable balance.
As XUMM shows the spendable amount of XRP you hold, instead of your raw XRP amount including locked up amounts, XUMM then shows a negative spendable balance.
For insight in your raw account balance & on ledger reserves, please tap the "Explain" link close to your balance to see your XRP & the amount of XRP reserved by the XRP ledger. Your account is below reserve now.
If your account is below the XRP Ledger reserve requirement, a negative balance will now be displayed at the XUMM home screen, making it clear that the first XRP deposited will go to satisfying the XRP Ledger reserve instead of your spendable balance.
If your account is below the XRP Ledger reserve requirement, a negative balance will now be displayed at the XUMM home screen, making it clear that the first XRP deposited will go to satisfying the XRP Ledger reserve instead of your spendable balance.
So while your balance is actually above zero, your spendable balance is below zero. Meaning if you deposit more XRP, the first XRP (up to the negative amount) will go to satisfying the XRP Ledger reserve requirement, the remaining amount of XRP will be spendable.
Example (calculation, numbers)
At the current account reserve of 10 XRP, imagine you have 12 XRP in your account. Due to the account reserve of 10 XRP, this results in 2 XRP being spendable. As XUMM shows only spendable XRP, XUMM will show 2 XRP spendable XRP on the home screen. You send 2 XRP to another XRP Ledger account.
The network fee (XRP Ledger fee, not a XUMM fee, XUMM doesn't charge fees) is 12 drops: 0.000012 XRP. The XRP Ledger charges the network fee on top of the amount sent, and the network fees can be spent out of your reserve. This means your balance will be deducted by 2.000012 XRP when sending.
12 XRP - 2.000012 XRP = 9.999988 XRP. Minus the network account reserve of 10 XRP, this results in a spendable balance of -0.000012 XRP (negative).
If XUMM would show a minimum balance of 0 XRP, it would get really confusing when you send XRP to your XRP Ledger account. Imagine in the example situation above you would then send 5 XRP to your XRP Ledger account, the negative (under reserve) amount would be "filled" first, showing a deposit of only 4.999988 XRP, while actually 5 XRP was deposited and added to your account's balance.
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