insurance fund
Providing protection for customers

Check Total Fund Assets

With ZKE, you can trade with confidence because we take asset security very seriously.

Below are the insurance fund benefits coverage available for transactions using our platform:

Compensate for losses due to margin call liquidation

Reducing the likelihood of automatic position reduction

Avoid triggering automatic position reduction mechanisms

Protection of traders' interests

Transparency and openness of all financial records

Shared insurance fund pool

Rules for users to share insurance funds:

Details of the insurance fund share, rules for sharing amounts and screening of profitable positions.

Rules of the amount of the share:

The amount to be apportioned for the position - the amount of the "margin call liquidation" that the user has to bear * the amount of profit of the position for the current settlement period / the total profit of all profitable positions for the current settlement period.

流水记录:

After the user participates in the apportionment, a statement of the type "apportionment" will appear in the Asset statements.

Proportion of losses borne by the Insurance Fund:

The insurance fund will cover a percentage of your loss when the system penetrates the position.

Percentage of loss to be borne:

In case of "margin call liquidation" of the system, the insurance fund bears part of the losses. The current percentage is 20% and the remaining part (80%) is shared by the user's profitable positions, which reduces the user's profit but does not lead to a loss.

20% by the insurance fund

80% shared by users' profitable positions

Apportionment of Profit Positions:

Screening rules for profitable positions.

Rule on the amount to be apportioned.

We will count all the profitable positions in this settlement cycle and rank these positions in terms of profitability, starting with the most profitable positions, and stop looking when the cumulative amount of profit accounts for 90% of the total amount of profit in this settlement system, and those positions found will participate in this apportionment. The purpose of doing so is to avoid those who have a small amount of profit to participate in the apportionment of the position, and only let the large profit to be apportioned to reduce the long tail of the apportionment.

Frequently Asked Questions

Answers to your insurance fund questions

What is an insurance fund?

Insurance fund is a fund that compensates for losses due to "margin call liquidation" of a user's position in extreme market conditions, in order to reduce the possibility of user contribution. In our exchange contracts, all currencies and perpetual contracts with the same margin share the same insurance fund.

How is the insurance fund created?

After the "Forced liquidation" engine takes over the position, the profit from processing the position will be injected into the insurance fund. In case of "Forced liquidation", the "Forced liquidation" engine takes over the user's position and the remaining margin at the takeover price. If the "Forced liquidation" engine "closes the position" at a price better than the takeover price, it generates a profit, which will be fully credited to the insurance fund.

How is the insurance fund used?

In case of "Forced liquidation", the "Forced liquidation" engine takes over the user's position and the remaining margin at the takeover price. If the position continues to lose money, if the engine of "Forced liquidation" loses money after "closing position", this loss is considered to be the loss of the system "margin call liquidation". A part of the "margin call liquidation" loss will be compensated by the insurance fund and the rest will be shared by the user.

insurance fund Providing protection for customers