Futures · Risk Protection
Insurance Fund Providing protection for customers
ZKE Insurance Fund is designed to cover losses under extreme market conditions and reduce the probability of auto-deleveraging for all users.
Check Total Fund Assets
Real-time data from ZKE USDT-M Perpetual Futures
What does the Insurance Fund cover?
With ZKE, you can trade with confidence. The insurance fund provides a shared safety cushion for all margin and perpetual contracts using the same margin asset.
Reduce the likelihood of automatic position reduction
Avoid triggering auto-deleveraging mechanisms
Protect the interests of profitable traders
Ensure transparent and open financial records
Maintain a shared insurance fund pool for all users
Creation & Usage
How is the Insurance Fund created?
After the forced liquidation engine takes over a position, any remaining profit after closing the position at a better price will be injected into the insurance fund.
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01
Forced liquidation engine takes over
When a position reaches the margin call threshold, the forced liquidation engine takes over the user’s position and remaining margin at the takeover price.
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02
Position is closed by the engine
If the engine closes the position at a better price than the takeover price, a profit is generated for the system.
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03
Profit is injected into the fund
This profit is fully credited to the insurance fund, increasing its capacity to cover future extreme losses.
When does the fund compensate losses?
If, after forced liquidation, the engine closes the position at a worse price and the system incurs a loss, this loss is considered a “margin call liquidation loss”.
A portion of this loss is covered by the insurance fund, and the remaining part is shared by profitable positions in the same settlement period.
20% covered by Insurance Fund
80% shared by profitable positions
Statement record
After participating in the apportionment, an entry of type “Apportionment” will appear in the Asset Statements for the corresponding futures account.
Sharing mechanism
How is the loss shared?
The insurance fund first absorbs part of the loss. The remaining part is shared by profitable positions, reducing their profit but avoiding forced losses on other traders.
20%
Insurance Fund
Covers 20% of the margin call liquidation loss directly from the fund balance.
80%
Profitable Positions
The remaining 80% is shared proportionally by profitable positions in the current settlement period, reducing profit but not causing net losses.
Amount shared per position
Amount to be shared for a position =
System loss from margin call liquidation
×
position profit in current cycle
÷
total profit of all profitable positions in current cycle
Screening of profitable positions
- All profitable positions in the settlement cycle are sorted by profit, from highest to lowest.
- We accumulate profit from the top positions until it reaches 90% of total profit of all profitable positions.
- Only these “head” positions participate in the apportionment for this cycle.
- This reduces long-tail impact and keeps apportionment fair for small-profit traders.
Frequently Asked Questions
Still unsure how the insurance fund works? Here are some common questions from ZKE users.
The insurance fund is a pool of funds that compensates for losses due to “margin call liquidation” of users' positions under extreme market conditions. All contracts that share the same margin asset also share the same insurance fund.
After the forced liquidation engine takes over the position and closes it at a better price than the takeover price, the profit generated is fully credited to the insurance fund.
In case of a “margin call liquidation loss” after forced liquidation, part of the loss is covered by the insurance fund and the remaining part is shared by profitable positions, reducing profit but avoiding additional user losses.