MCS | Insurance Fund of Crypto Derivatives

MCS | Insurance Fund of Crypto Derivatives



Welcome to MCS, the world-class derivatives trading platform where traders ALWAYS come first.    


Today's topic is "Insurance Fund".



What is the Insurance Fund?

The insurance fund will primarily act to prevent the loss and to minimize the triggering of auto deleveraging (ADL).



Why Does the Insurance Fund Exist?

The liquidation will be executed when the market price touches the liquidation price.


When the Mark Price reaches the liquidation price, the position is taken over by the liquidation engine and goes into the liquidation process. However, in volatile or non-liquid markets, the position may be closed at a price worse than the bankruptcy price. And we call it 'contract loss.'


In the event of such contract loss, the insurance fund will primarily act to prevent the loss. And If the final closing price of the position is better than the bankruptcy price, the balance remaining after the liquidation is added to the insurance fund. If the amount of insurance funds is insufficient to cover the contract losses, the ADL system will be activated.



Let's Learn More about Insurance Fund.

Traders can lower their ranking by checking the amount of insurance fund. If a trader considers that the ADL is likely executed, he or she can lower their ranking by reducing their leverage or closing some of the positions.

As MCS operates its insurance fund flexibly, ADL is rarely executed unless the market changes rapidly. Therefore, traders can trade in a more stable trading environment.

MCS transparently manages the insurance fund, and traders can view the current insurance fund balance and details on MCS's insurance fund page and widget.




MCS will consider traders at the first.

Thank you.




MCS Website:
MCS Official Twitter (EN):
MCS Official Facebook:
MCS Telegram Chat (EN):