Insurance Fund

The Insurance Fund is a contract that ensures the solvency of the protocol. In the event of unexpected losses from the liquidation process, the Insurance Fund will absorb these losses.

The revenue of the Insurance Fund comes from a couple of sources:

• Fees collected from traders

• P2P fee

• Liquidations

• Auctions fee

As the Insurance Fund grows, it will be possible to allow for more open interests in the protocol.