# Insurance Funds

**Liquidation Mechanism**\
When a position is liquidated, the forced liquidation system automatically triggers. If the perpetual contract’s price reaches the bankruptcy price before the liquidation is fully executed, resulting losses are absorbed by the platform’s **insurance fund** — a dedicated reserve pool.

**Insurance Fund Structure**\
The insurance fund is currently funded and managed by the Astros. Future iterations of the fund will transition to sustained through trading fee allocations.


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