After forced liquidation is triggered, CoinEx will use a Dutch auction strategy to match orders in the market, and the resulting profits will be added to Futures Insurance Fund.

Dutch auction strategy involves the auctioneer starting at a high price and then gradually lowering the price until a buyer accepts the price or a predetermined reserve price is reached. The first bidder to accept the price wins and pays the price called for.

What is Insurance Fund used for?

CoinEx uses Futures Insurance Fund to prevent Auto-Deleveraging. When forced liquidation occurs, the Dutch auction strategy will be applied to match orders in the market, and any losses incurred will be covered by the Insurance Fund.