Who covers losses when a position goes bankrupt?
On Binance, when a position is liquidated, a liquidation clearance fee is also charged based on its notional value and fee rate. Binance collects this fee and may allocate all or part of it to the Insurance Fund as needed. Auto-Deleveraging (ADL) is a backstop measure in the liquidation system, and is generally triggered only when the Insurance Fund cannot cover the bankruptcy loss.
If the closing price of a liquidated position is worse than its bankruptcy price, the difference is first covered by the Insurance Fund. If the fund is insufficient, profitable positions held by counterparties share the loss—this is ADL.
Today's price: $BTC reports 82168.01, 24h +1.12%.
This is a compilation of public information. Please verify it yourself.
On Binance, when a position is liquidated, a liquidation clearance fee is also charged based on its notional value and fee rate. Binance collects this fee and may allocate all or part of it to the Insurance Fund as needed. Auto-Deleveraging (ADL) is a backstop measure in the liquidation system, and is generally triggered only when the Insurance Fund cannot cover the bankruptcy loss.
If the closing price of a liquidated position is worse than its bankruptcy price, the difference is first covered by the Insurance Fund. If the fund is insufficient, profitable positions held by counterparties share the loss—this is ADL.
Today's price: $BTC reports 82168.01, 24h +1.12%.
This is a compilation of public information. Please verify it yourself.