What Is the Significance of the ‘Fill Price’ Relative to the Bankruptcy Price?

The 'fill price' is the actual price at which the liquidated position is executed and closed on the market. The insurance fund's involvement depends on the comparison between the fill price and the bankruptcy price.

If Fill Price > Bankruptcy Price (for a short) or Fill Price < Bankruptcy Price (for a long), the surplus goes to the fund. If the fill price is worse, the fund covers the deficit.