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Are Insurance Funds Typically Held in the Native Cryptocurrency or Stablecoins?

Mostly held in stablecoins or the base currency of the contract to minimize volatility risk and ensure stable coverage capacity.
Greeks.Live22.11.25

Are Insurance Funds Typically Held in the Native Cryptocurrency or Stablecoins?

Insurance funds are typically held in stablecoins, such as USDT or USDC, or in the base currency of the contracts they cover (e.g. BTC for BTC-margined contracts).

Holding a significant portion in stablecoins is preferred because it minimizes the fund's exposure to crypto market volatility. This stability ensures the fund's value remains predictable and sufficient to cover deficits during market crashes when it is most needed.

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