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.
Quantitative Finance · Glosarium
Quantitative Finance · Glosarium
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.