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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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