Are There Limits on the Size of an Insurance Fund?

Generally, there is no strict upper limit on the size of a crypto futures exchange's insurance fund. Exchanges aim to grow the fund as large as possible to withstand extreme market events.

However, if the fund grows excessively large, some exchanges may periodically redirect surplus funds. This could involve using the surplus to reduce trading fees or adjust the liquidation fee structure.

The focus is on maintaining a sufficient buffer, not arbitrary growth.