Blockchain and crypto asset exchange
Blockchain and crypto education
Trading terminal solutions
Enterprise exchange solutions
Fast and secure decentralized digital asset exchange
Incubator for top blockchain projects
Token Launch Platform
Institutional-grade analysis and reports
Trust Wallet
Binance's official crypto wallet
Buy Crypto
Scan to Download App IOS & Android
Support Center
Crypto Derivatives
Futures Contracts
Introduction to Binance Futures
Insurance Fund
2019-09-09 02:50
The Insurance Fund is designed to use the collateral from fees on non-bankrupt clients to cover losses when the client accounts go below 0 in value. The primary purpose of the Insurance Fund is to limit the occurrences of counterparty-liquidation.
1. In cases where a trader in liquidation (defined as collateral < maintenance margin) has less than 0 USDT after all his positions are liquidated, or is otherwise unable to liquidate positions, the trader is bankrupt, and Binance will need to take over the remaining positions.
2. In the vast majority of these cases, Binance will use the Insurance Fund to take over the positions, and offload them onto the market slowly. The Insurance Fund will collect liquidation fees from clients that do not result in client bankruptcy. If the insurance fund is unable to accept positions from the liquidations, counterparty-liquidation will occur.
The Insurance Fund will be subjected to the following rules:
The fund will have a maximum net notional position check. The fund will not be allowed to exceed a predefined position notional on the market; by default, this is 100% the size of the insurance fund. Any positions that would increase beyond the max notional will be subjected to counterparty-liquidation. The insurance fund will offload positions according to a preset algorithm. All events that normally require intervention by the insurance fund will instead go into counterparty-liquidation before the fund could take positions.
You can access the insurance fund balance (USDT) of BTCUSDT, ETHUSDT, and all other perpetual contracts by clicking [Derivatives] - [USDS-M Margin] - [Information] - [Insurance Fund History].
Alternatively, you can directly visit
Related Articles
Differences Between Spot Trading and Futures Trading