Source: https://mochatrade.com/learn/glossary/insurance-fund

# Insurance fund
URL: https://mochatrade.com/learn/glossary/insurance-fund
Last modified: 2026-10-17

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](https://mochatrade.com/learn); [how liquidation works on Mochatrade](https://mochatrade.com/support/how-leverage-and-margin-work-on-mochatrade).

## Related terms

- Auto-deleveraging (ADL): https://mochatrade.com/learn/glossary/auto-deleveraging
- Liquidation price: https://mochatrade.com/learn/glossary/liquidation-price
- Mark price: https://mochatrade.com/learn/glossary/mark-price
- Cross margin: https://mochatrade.com/learn/glossary/cross-margin
- Isolated margin: https://mochatrade.com/learn/glossary/isolated-margin
- Liquidation / forced square-off: https://mochatrade.com/learn/glossary/liquidation-forced-square-off

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