1298709.106 USDT
The insurance fund is designed to compensate for losses due to user position penetration in extreme market conditions in order to reduce the possibility of user apportionment.
Compensate for losses due to margin call liquidation
Reducing the likelihood of automatic position reduction
Avoid triggering automatic position reduction mechanisms
Protection of traders' interests
Transparency and openness of all financial records
Shared insurance fund pool
Insurance Fund and Insurance Contribution
What is an insurance fund?
Insurance fund is a fund that compensates for losses due to "margin call liquidation" of a user's position in extreme market conditions, in order to reduce the possibility of user contribution. In our exchange contracts, all currencies and perpetual contracts with the same margin share the same insurance fund.
How is the insurance fund created?
After the "Forced liquidation" engine takes over the position, the profit from processing the position will be injected into the insurance fund. In case of "Forced liquidation", the "Forced liquidation" engine takes over the user's position and the remaining margin at the takeover price. If the "Forced liquidation" engine "closes the position" at a price better than the takeover price, it generates a profit, which will be fully credited to the insurance fund.
How is the insurance fund used?
In case of "Forced liquidation", the "Forced liquidation" engine takes over the user's position and the remaining margin at the takeover price. If the position continues to lose money, if the engine of "Forced liquidation" loses money after "closing position", this loss is considered to be the loss of the system "margin call liquidation". A part of the "margin call liquidation" loss will be compensated by the insurance fund and the rest will be shared by the user.
Rules for users to share insurance funds
Details of the insurance fund share, rules for sharing amounts and screening of profitable positions
Rules of the amount of the share:
The amount to be apportioned for the position - the amount of the "margin call liquidation" that the user has to bear * the amount of profit of the position for the current settlement period / the total profit of all profitable positions for the current settlement period After the user participates in the apportionment, a statement of the type "apportionment" will appear in the Asset statements.
After the user participates in the apportionment, a statement of type "apportionment" will appear in the Asset statements.
The insurance fund bears the percentage of losses:
In case of "margin call liquidation" of the system, the insurance fund bears part of the losses. The current percentage is 20% and the remaining part (80%) is shared by the user's profitable positions, which reduces the user's profit but does not lead to a loss.
Rules of selection of profitable positions:
We will count all profitable positions during the settlement period and rank them in terms of profitability. The search will start with the most profitable positions and will stop when the accumulated profit amount reaches 90% of the total profit amount of the settlement system. The positions found will be included in the share. The purpose of this is to reduce the "long tail" of apportionment by avoiding the apportionment of positions with small profit amounts and allowing only the large profitable positions to be apportioned.