What Is the Role of an exchange'S'treasury' Compared to the Insurance Fund? ⎊ Path

What Is the Role of an Exchange’s ‘Treasury’ Compared to the Insurance Fund?

An exchange's treasury is the general corporate fund used for operational expenses, development, marketing, and investment. The insurance fund, conversely, is a segregated pool of capital dedicated solely to covering liquidation deficits.

The insurance fund is a specific risk management tool, while the treasury is for general business functions.

What Happens If the Insurance Fund Runs out of Capital?

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

Can an Exchange Use the Insurance Fund for Purposes Other than Covering Liquidation Shortfalls?

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

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

How Do the Fees Associated with Segregated Accounts Typically Compare to Those for Omnibus Accounts?

Can a Trader Declare Bankruptcy to Avoid Margin Call Deficits?

What Is the CCP’s Default Fund and How Does It Interact with Segregated Margin?

Glossar

Insurance Fund

Fund ⎊ In the context of cryptocurrency derivatives, options trading, and financial engineering, an Insurance Fund represents a dedicated pool of assets designed to mitigate systemic risk within a specific protocol or trading environment.

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