Does the Depletion of the Fund Affect the Exchange’s Solvency?

While the fund's depletion is a serious risk event, it does not immediately equate to the exchange's insolvency. The insurance fund is a buffer against trader deficits.

The exchange's solvency depends on its overall financial health, regulatory compliance, and ability to cover its own operational costs and liabilities. However, a depleted fund increases the reliance on ADL, which can damage the exchange's reputation and long-term viability.