Exchange Insurance Funds

An exchange insurance fund absorbs bankruptcy losses from liquidations: when a forced-close order cannot fill above the bankruptcy price, the shortfall is covered by the fund rather than socialised onto profitable users through auto-deleveraging (ADL). The balance is the systemic risk buffer of a derivatives venue.

In normal conditions an insurance fund should grow slowly — liquidations usually fill above the bankruptcy price and the residual margin accrues to the fund. Two anomalies matter: a sharp drawdown means large-scale bankruptcy losses occurred because depth could not absorb the liquidations, typically during extreme moves; while unusually fast growth means liquidation parameters are conservative, users are being closed too early, and the venue profits systematically. Comparing absolute balances across exchanges says little — read the fund relative to that venue's open interest.

Volume and market-structure metrics describe the size and distribution of trading activity. Methodologies differ sharply between venues (wash-trading filters, USD conversion), so confirm the accounting basis before comparing platforms side by side.

The live chart for this metric is still being wired up. Global volume, venue share and perp-vs-spot pages already carry real data.