What Is the Insurance Fund on Delta Exchange and When Does It Apply?

The Insurance Fund is used when Delta Exchange is unable to close a liquidated position before it breaches the bankruptcy price.

How Does the Insurance Fund Work?

• During liquidation, the Liquidation Engine attempts to close positions it takes over.
• It is designed to tolerate up to a 5% loss on any contract.
• If a loss occurs within this 5% threshold, it is covered by the Insurance Fund.

You can view real-time Insurance Fund data here:

? Delta Exchange Insurance Fund

What If Losses Exceed the Insurance Fund Threshold?

If the Liquidation Engine cannot close the position within the 5% loss limit, then Auto-Deleveraging (ADL) is triggered. This means some profitable traders with high leverage may have their positions partially or fully reduced.