⚱️Isolated Insurance Fund

Purpose: The isolated insurance fund will cover trading losses during periods of high market volatility and protect against leveraged losses incurred in specific markets. Each asset will implement its own risk management strategy, ensuring stability and security on the platform.

These assets have a different risk management strategy 👇

• BTC & ETH

• SOL

• STRK

How It Works:

• Holding Fund: Safely holds user funds on Layer 2 (Starknet) in a self-custodial account.

• Insurance Fund: Covers losses from trading activities.

• Revenue Fund: Trading fees contribute to the revenue fund. 20% of this fund will be distributed daily to stakers. Automated reward distribution for users is in progress.

Automated Deleveraging: In the coming months, we'll introduce Automated Deleveraging. This feature manages the platform's risk during extreme market conditions where insurance funds fall short. In such cases, ADS in ZKX will liquidate users at the market price if the insurance fund can't cover a loss, preventing total fund loss and offering better protection for traders.