Risk Reserve Fund is designed to compensate for losses incurred due to liquidation, reduce losses for bankrupt traders, ensure profits for counterparties, and reduce automatic deleveraging for high-profit traders.
Rules of the Risk Reserve Fund:
When a position can be liquidated at a price better than the bankruptcy price in the market, the remaining margin will be added to the insurance fund.
Conversely, when the final execution price of liquidation is different from the bankruptcy price, the losses of the futures will be borne by the insurance fund.
If the insurance fund is not sufficient to cover the difference between the final execution price and the bankruptcy price, the losses of the futures will be taken over by the automatic deleveraging system and borne by the users on the platform.
For example, if a user holds a long position in BTC/USDT, with a forced liquidation price of 40,000 USDT and a bankruptcy price of 39,950 USDT, once the mark price reaches 40,000 USDT, the position will be forcibly liquidated.
If this position can be closed at any price higher than 39,950 USDT, such as 39,980 USDT, the excess margin will be transferred to the insurance fund. Conversely, if the liquidation execution price is lower than 39,950 USDT, such as 39,930 USDT, the insurance fund will be used to cover the loss from the liquidation.
8V official website: https://8V.com and https://8V.com/info
Android Google PlayStore download (not applicable to UK IPs): https://play.google.com/store/apps/details?id=com.royallyborn.v8&hl=en
Android Standalone installation package: https://static.aws-s1.com/app/8v_1_3_0_s.apk
Apple iOS standalone installation package: https://get.8v.com
Samsung GalaxyStore download: https://galaxystore.samsung.com/detail/com.royallyborn.v8