Can the Insurance Fund Be Used for Exchange Operational Expenses? ⎊ Path

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.

Where Does the Liquidation Fee Money Typically Go?

What Happens If the Insurance Fund Runs out of Capital?

What Is the Role of an exchange’S’treasury’ Compared to the Insurance Fund?

Can an Exchange Borrow from Its Insurance Fund for Operational Expenses?

Can an Exchange ‘Borrow’ from the Insurance Fund for Operational Costs?

Can a Trader Declare Bankruptcy to Avoid Margin Call Deficits?

What Is the Role of the ‘Insurance Fund’ in a Crypto Derivatives Exchange’s Liquidation Process?

How Does the Funding Rate Mechanism on Perpetual Swaps Relate to the Insurance Fund?