Does the Insurance Fund Treat Cross Margin and Isolated Margin Liquidations Differently?

The insurance fund's function remains the same regardless of the margin mode: to cover any deficit that results from a liquidation. However, liquidations from Cross Margin accounts are generally seen as higher risk for the fund.

This is because a Cross Margin liquidation often involves a larger position size and can potentially result in a larger, single deficit if the market moves rapidly, as the entire account balance was used as collateral.