Does Faida Trade have an insurance fund?

Created by Prachi Jain, Modified on Tue, 29 Sep at 3:43 PM by Prachi Jain


Yes Faida Trade does have an Insurance fund. The Insurance Fund is a financial safety buffer used by derivatives exchanges to manage losses during liquidations. When a trader’s leveraged position is liquidated and cannot be closed at the bankruptcy price due to market volatility or slippage, the Insurance Fund covers the deficit.

This mechanism helps protect profitable traders, reduces the need for Auto-Deleveraging (ADL), and maintains overall market stability.


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