At what price does the insurance_fund make the trades?
Hi. It depends on the traders’ condition. Please refer to this article about how it works. https://www.binance.com/en/support/faq/360033525371
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Thank you @ishuen for your prompt response. The article unfortunately does not explain what the traders’ condition means. Would you be able to explain this further?
Giving this a quick bump.
When a client has the funds less than the maintenance margin, which triggers the liquidation, the insurance fund will be used to cover the loss by offload the positions. Except for the upper bound (total insurance fund), there is no specific number or rate to apply on those trades. It depends on the positions held by the client.
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@ishuen thank you. Does this mean the insurance fund can transact at any dollar value it wants like 0 or 2,000,000 for BTCUSDT perpetual futures in a case of liquidation?
As long as it is within the limit (max position notional), it’s fine.