If DC can close the position at a price better than the bankruptcy price, the user's remaining margin will be added to the insurance fund.
If DC cannot close the position at a price better than the bankruptcy price, then the insurance fund will be used to cover the loss of the position. If the balance of the insurance fund is not enough to cover the loss of short-term position, this will trigger the automatic deleveraging mechanism.
DC uses insurance funds to prevent traders' positions from being automatically deleveraged.
Deepcoin Team
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