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Can the Insurance Fund Be Used for Exchange Operational Expenses?

No, the insurance fund is a segregated pool of capital explicitly dedicated to covering liquidation deficits and cannot be used for exchange operational expenses, such as salaries, marketing, or development. Using the fund for operations would be a severe breach of risk management protocol and a significant regulatory red flag.

How Does the Size of an Insurance Fund Influence the Maximum Leverage Offered by an Exchange?
How Does a Breach Affect the ‘Risk-Free Rate’ Assumption in Option Pricing?
What Is the Role of ‘Liquidation’ in Triggering the Use of the Insurance Fund?
How Do Decentralized Exchanges Attempt to Avoid Both ADL and Socialized Loss?