The Insurance Fund is a dedicated reserve established by the CoinW platform to mitigate potential negative balances (clawbacks) caused by forced liquidation orders under extreme market conditions. Its purpose is to ensure overall trading stability and protect users’ assets across the platform.
Sources of the Insurance Fund
The Insurance Fund is primarily sourced from:
Platform Reserve: A portion of funds pre-allocated by CoinW as a risk buffer.
Remaining Profits from Forced Liquidations: If a user’s position is forcefully liquidated and the process results in a profit, the remaining amount is transferred into the Insurance Fund account.
Every day at 16:00:00 (UTC+8), the platform calculates the total results of all forced liquidation and auto-deleveraging (ADL) orders from the previous 24 hours (from 16:00 the previous day to 16:00 on the current day):
If a negative balance (clawback) occurs—where the loss exceeds the remaining margin—funds will be withdrawn from the Insurance Fund to cover the shortfall.
If the liquidation results in a surplus, the excess amount will be injected into the Insurance Fund.
This dynamic mechanism allows the fund to self-adjust, offering enhanced resilience against systemic market risks.
To align with product updates or platform management needs, CoinW reserves the right to modify, supplement, or remove the content of this announcement at any time without prior notice. We recommend users regularly review this announcement to stay informed of the latest updates regarding the Insurance Fund.
The Insurance Fund is a dedicated reserve established by the CoinW platform to mitigate potential negative balances (clawbacks) caused by forced liquidation orders under extreme market conditions. Its purpose is to ensure overall trading stability and protect users’ assets across the platform.
Sources of the Insurance Fund
The Insurance Fund is primarily sourced from:
Platform Reserve: A portion of funds pre-allocated by CoinW as a risk buffer.
Remaining Profits from Forced Liquidations: If a user’s position is forcefully liquidated and the process results in a profit, the remaining amount is transferred into the Insurance Fund account.
Every day at 16:00:00 (UTC+8), the platform calculates the total results of all forced liquidation and auto-deleveraging (ADL) orders from the previous 24 hours (from 16:00 the previous day to 16:00 on the current day):
If a negative balance (clawback) occurs—where the loss exceeds the remaining margin—funds will be withdrawn from the Insurance Fund to cover the shortfall.
If the liquidation results in a surplus, the excess amount will be injected into the Insurance Fund.
This dynamic mechanism allows the fund to self-adjust, offering enhanced resilience against systemic market risks.
To align with product updates or platform management needs, CoinW reserves the right to modify, supplement, or remove the content of this announcement at any time without prior notice. We recommend users regularly review this announcement to stay informed of the latest updates regarding the Insurance Fund.