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Quantitative Finance · Glossaire

Qu'est-ce que « Insurance fund » ?

Definition 18.5 Markets III: Commodities, Energy and Crypto · Chapitre 18 — Margin, Liquidation and Loss Allocation

An insurance fund is a pool of assets a derivatives venue holds to absorb the losses of positions liquidated below their bankruptcy prices, funded mostly by the remaining margin of positions liquidated above them.

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