Last updated: 3 Sep 2024
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The Margin Insurance Fund is designed to make up for losses incurred when the user’s Cross Margin or Isolated Margin account equity (asset minus liability) is less than 0. In this case, the platform will inject the Liquidation Clearance Fees into the Margin Insurance Fund.
Margin Insurance Fund Rules:
1. Repay: If your margin account goes bankrupt, i.e., there are not enough funds in the account to repay the debt after being force liquidated, resulting in negative equity (asset-liability), the system will use the Margin Insurance Fund to repay your debt.
- If the debt is less than or equal to 0.1 BTC equivalent, the system will automatically use the Margin Insurance Fund to repay your debt.
- If the debt is greater than 0.1 BTC equivalent, a manual check is required, which may take some time to validate and complete the repayment process.
2. Withdrawal Limit:
- If the total bankrupt amount under the Parent Account and all its Sub-Accounts is less than or equal to 10,000 USDT equivalent, withdrawals will not be affected.
- If the total bankrupt amount under the Parent Account and all its Sub-Accounts is greater than 10,000 USDT equivalent, the withdrawal from the Parent Account will be blocked up to the amount corresponding to the bankrupt amount.
How to check the balance of the Margin Insurance Fund?
Website: You can check the balance of your Margin Insurance Fund by clicking [Assets] - [Margin] - [Insurance Fund], or you can also view it directly from [Margin Insurance Fund].
APP: Tap [...] - [Data] - [Insurance Fund].
What are Liquidation Clearance Fees?
When your Margin account is being force liquidated, the Margin Insurance Fund will charge a certain percentage in clearance fees. These fees can be viewed in the Margin account Clearance Fee History. However, you are recommended to manage your risks carefully to avoid forced liquidations. The user's liquidation price will not change as a result.
| Products | Liquidation fee |
| Cross Margin | Cross Margin liquidated assets * 2% |
| Cross Margin Pro | Liquidated assets under Cross Margin Pro * 3% |
| Isolated Margin | Isolated Margin liquidated assets * 2% |
Note: The Liquidated assets are calculated by the margin account snapshot taken at the start of the liquidation.
How to check the Clearance Fee History？
Website: Click [Orders] - [Margin Order] - [Liquidation] - [Liquidation History].
APP: Tap [Orders] - [Margin Order] - [Liquidation] - [Liquidation History].
To learn more, visit the Margin Account Management FAQs page.