Insurance fund account
The insurance fund is a risk buffer that protects against negative balances in futures trading. When a liquidated position's proceeds are too low to cover a loss, the platform takes from the insurance fund to make up the difference, rather than passing the loss on to profitable users.
Funding source: When the actual fill price of liquidation is better than the bankruptcy price, the surplus is credited to the corresponding insurance fund pool.
Use conditions: When a liquidated position cannot be filled at or near the bankruptcy price and results in a negative-balance loss, the insurance fund covers the shortfall first. If the insurance fund balance is insufficient, the platform will activate the auto-deleveraging (ADL) mechanism.
Insurance fund pools
To prevent risk being spread across multiple different products, we manage insurance funds in separate pools by futures type and currency liquidity. Pools are completely independent and have no impact on one another.
The insurance fund is broken into the following pools:
USDT perpetual futures for USDC, LTC, ADA, AAVE, BONK, XLM, LINK, TRX, HYPE, SUI, DOT, ARB, AVAX, APT, SHIB, NEAR, PEPE, UNI, BCH, OP, ETC, CRV, PUMP, ATOM, TIA, WLFI, ENA, TON, and BNB
USDT perpetual futures for XRP, DOGE, and SOL.
USDT perpetual futures FIL, PENGU, JUP, WLD, TAO, INJ, JTO, POL, S, FET, SEI, LDO, ICP, and PENDLE.
USDT perpetual futures SKY, EIGEN, MORPHO, WIF, APE, RENDER, TRUMP, VIRTUAL, ETHFI, ONDO, and FLOKI.
USDT perpetual futures BTC and ETH.
*Pool allocations are subject to change, depending on market conditions.