Insurance Fund

« Back to Glossary Index

The insurance fund is the fundamental to the cryptocurrency derivatives exchanges and protocols. It performs as a defense against the contract loss in leveraged trading. It is used to pay the traders in the event of liquidations who fail to adopt the measures in time for preventing their open positions from going bankrupt. Typically, they are funded by making use of the exchange fees, the liquidation penalties  or other means.

« Back to Glossary Index

Check Also


eToro Review: A Guide To Trading On The Popular Platform

If you’re looking to invest in the stock market or cryptocurrency, eToro might be the …

AdBlock Detected

Looks like you are using an ad-blocking browser extension. We request you to whitelist our website on the ad-blocking extension and refresh your browser to view the content.