> ## Documentation Index
> Fetch the complete documentation index at: https://dexbuilder.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Insurance Fund

During liquidation, positions are settled according to the applicable liquidation and bankruptcy-price rules.

If market execution is worse than the bankruptcy price and the position margin is not enough to cover the remaining loss, the insurance fund can absorb the shortfall.

If the insurance fund is insufficient to cover the remaining deficit, the Auto-Deleveraging (ADL) mechanism can be activated to complete the settlement process.


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