Can an Exchange Use the Insurance Fund for Purposes Other than Covering Liquidation Shortfalls?

Generally, no. The insurance fund is a segregated reserve pool explicitly designated to cover contract losses and negative balances arising from leveraged liquidations.

Using it for operational costs, marketing, or general business expenses would be a severe breach of trust and regulatory compliance. Its sole purpose is to act as a financial buffer to maintain the integrity and solvency of the derivatives market on the platform.