Insurance fund

An insurance fund is the pool a venue uses to cover losses when a liquidated position's margin is not enough, so winners get paid in full. When it runs dry, auto-deleveraging takes over; how liquidation works on Mochatrade.

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In the help centreLearn what a perpetual contract is on Mochatrade
  • Auto-deleveraging (ADL)Auto-deleveraging is the last step when a liquidated position's loss exceeds its margin and the insurance pool: the…
  • Liquidation priceThe liquidation price is where the venue closes your leveraged position, computed from entry, leverage and margin…
  • Mark priceThe mark price is the price a venue judges your position by, for unrealised profit and liquidation, built from the…
  • Cross marginCross margin uses your whole balance as margin for every open position, so a winner props up a loser and liquidation…
  • Isolated marginIsolated margin ties a fixed amount of margin to one position, so that position can only lose what you gave it and the…
  • Liquidation / forced square-offLiquidation, or forced square-off, is the venue closing a leveraged position because the margin can no longer cover…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

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