Paradex's insurance fund changed by -5.92% over the past 24 hours, a move of -$23K that leaves the fund at $362K.
An insurance fund is the pool an exchange keeps to absorb losses when a liquidated position closes at a worse price than the trader's margin can cover. It protects the traders on the other side of those trades from picking up the shortfall.
The figure is a single 24 hour reading on one venue, measured as the change in the fund's balance. It shows how much of that cushion was drawn down, not which way the market is leaning.
An insurance fund is the pool an exchange keeps to absorb losses when a liquidated position closes at a worse price than the trader's margin can cover. It protects the traders on the other side of those trades from picking up the shortfall.
The figure is a single 24 hour reading on one venue, measured as the change in the fund's balance. It shows how much of that cushion was drawn down, not which way the market is leaning.
