Insurance Fund

Insurance Fund is a tool that the project employs to ensure the settlement of positions and maintain stability. However, NAVAIX Insurance Fund not only has an inflow but is also used for payouts in the following two scenarios:

  • Issues during the liquidation process: When the market experiences excessive volatility or the network faces congestion, leading to delayed liquidation ⇒ If liquidation cannot be executed in a timely manner, the insurance fund will be used to compensate for the losses incurred due to this risk.

  • Payouts for the Funding rate:

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