How Do Different Exchanges’ Funding Models for Their Insurance Funds Compare?

While most crypto exchanges fund their insurance pools primarily through liquidation fees and surplus from successful liquidations, the exact percentages and mechanisms vary. Some exchanges have transparent, fixed contribution rates, while others use a more dynamic system that adjusts based on the fund's current size.

Decentralized exchanges (DEXs) often use a governance-controlled mechanism for funding and managing the pool, differing significantly from centralized models.