When “It’s fine because there’s an insurance fund” is going around in the group chat, there’s something to get straight before looking at the charts. Binance’s insurance fund is described as a pool that absorbs losses remaining after forced liquidations. But the claim “There’s a fund, so it will always protect me” doesn’t hold up. ADL (auto-deleveraging) may be related, but a screenshot of the fund balance alone doesn’t prove you’re exempt.
If you want to practice using the futures interface from the beginning, check the address bar, then go here:
https://www.bsmkweb.cc/register?ref=BNSIP
## What is the Insurance Fund? Is it like a bank deposit?
No. It is not a deposit, interest, or a personal guarantee. The usual process is described as the Insurance Fund covering any remaining losses, such as the difference between the liquidation price and the bankruptcy price, after a position is forcibly liquidated. If the fund is sufficient, the process often ends at that stage. If it is insufficient, the process may continue with ADL reducing the opposing positions of traders with higher profits and leverage, according to their ADL ranking.
Group chats often boil this down to claims like “the fund is insurance for my account” or “just check the balance and that’s all,” but these often don’t match the official help materials. Read about the fund separately from your own positions, margin, and ADL indicator.
## Where should I look on the screen?
Labels vary a little between the app and website. Under Futures, you may find an item labeled something like “Insurance Fund” in the Information/Data, Indicators, or Help sections. Even if you see a balance or chart, it is not a certificate proving “no ADL today.” The display may also appear briefly delayed.
Rather than memorizing the menu structure, search for “Insurance” on the Futures screen or look for the same keyword in Help to find your way more easily. The location may change depending on the version or language, but just check the fund-related figures shown on the screen you’re currently viewing.
Don’t use yesterday’s screenshot of the fund balance to make assumptions about today. If someone contacts you by DM offering to “add funds to the fund for you” or “set up protection remotely,” end the conversation immediately. Never send anyone your seed phrase or password.
## How does it relate to ADL?
The usual explanation is: forced liquidation → the Insurance Fund covers remaining losses → ADL if there is still a shortfall. It can also help to make a habit of checking your ranking, but today the focus is on the fund. Don’t assume that ADL “can’t happen” just because there is a fund. Likewise, reject rumors that oversimplify things with claims like “if the fund runs dry, the mark price is manipulated.”
Looking at the ranking indicator, position card, and fund information together can be less confusing than “just trust the fund.” Still, checking them together does not mean losses, liquidation, or ADL will disappear. In extreme market conditions, the ranking may change even after the fund process, according to the guidance.
## Should I believe claims like “It will protect me no matter what”?
No. The Binance Insurance Fund is described as a mechanism for dealing with remaining liquidation losses across the market, not as an absolute safety net for individual positions. “A large balance means you’re safe” and “a screenshot is all you need” are not proof of exemption either. First, check your leverage, collateral, maintenance margin, and your own screen through official channels in the app or website.
It does not promise target prices or profits either. This article only covers the concept of the fund and its context for ADL.
## Frequently Asked Questions
**Q. What is the Binance Insurance Fund?**
A. It is described as a mechanism that absorbs losses remaining after forced liquidation. It is not a deposit or a personal guarantee.
**Q. Where can I find it?**
A. Look for an item like “Insurance Fund” under Information/Data, Indicators, or Help in the Futures section. A display is not proof of exemption.
**Q. How is it related to ADL?**
A. The guidance generally says that ADL may follow if there is still a shortfall after the fund is used. Don’t assume ADL can’t happen just because the fund exists.
**Q. Will it protect me no matter what?**
A. No. Don’t interpret it as a promise of absolute protection or profits.
Here’s the registration link for practice and checking again:
https://www.bsmkweb.cc/register?ref=BNSIP
Futures and leverage can lead to significant losses. This article only explains the concept of the Binance Insurance Fund and its context for ADL; it does not promise that the fund will provide absolute protection or that you will make a profit.