Skip to main content

Which Exchanges Are Known for Historically Using a Socialized Loss System?

Early-stage or smaller crypto futures exchanges sometimes utilized the socialized loss model before transitioning to the more robust insurance fund model. Notably, some of the very first crypto derivatives platforms used this system to cover deficits before the industry standardized on the insurance fund as the primary defense mechanism against under-collateralized positions.

What Are the Limitations of Using Traditional DCF for Early-Stage Decentralized Autonomous Organizations (DAOs)?
What Is the Purpose of an Exchange’s Insurance Fund in the Crypto Futures Market?
Is ‘Last Look’ More Prevalent in Cryptocurrency Derivatives or Traditional Interest Rate Swaps?
What Is the Difference between an ‘American’ and ‘European’ Option?