Let’s talk about the insurance fund and ADL:
A position is “bankrupt” when its losses exceed all of its margin. This often happens when the market gaps and liquidation orders can’t be filled at a reasonable price in time.
A large part of Binance’s insurance fund comes from liquidation fees and profits made when closing bankrupt positions. These funds accumulate under normal market conditions and are used to cover losses from bankrupt positions during periods of extreme volatility.
$BTC 81934.01（+0.96%）
A position is “bankrupt” when its losses exceed all of its margin. This often happens when the market gaps and liquidation orders can’t be filled at a reasonable price in time.
A large part of Binance’s insurance fund comes from liquidation fees and profits made when closing bankrupt positions. These funds accumulate under normal market conditions and are used to cover losses from bankrupt positions during periods of extreme volatility.
$BTC 81934.01（+0.96%）