Insurance Fund

The insurance fund is the main backstop collateral vault; adding additional collateral and confidence to the protocol for users to prevent bankruptcies and ensures that all positions are made whole.

The insurance fund automatically:

  • pays for all levered losses incurred by protocol users
  • recieves a fraction of collateral from successful/valid liquidations

The insurance fund also has the ability to recieve a fraction of collected trading activity fees. In additional to the collectively pool, each market has its own insurance fund pool based on fees paid.

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