The primary purpose of an insurance fund is to decrease the possibility of the occurrences of Auto-Deleveraging (ADL). Insurance funds are used to share the current liquidation orders before they are taken over by ADL system on the platform. Due to the structure of the platform, exchanges are not required to pay users with negative balance accounts. OrangeX will use the insurance funds to ensure that the profits of winning traders are paid out in full even the bankrupt users' funds cannot cover that. The insurance funds will be increased when liquidations can be executed in the market at a price better than the bankruptcy price.