The Gemini Insurance Fund is not designed to make or lose money, its mandate is to protect the integrity of the platform by providing capital to manage positions, when necessary, that cannot be closed on the public order book. 

All Liquidation Fees are paid into the Insurance Fund in order to ensure it has the capital required to manage the expected risk from customer derivative’s positions. It is the additional layer of protection designed to significantly reduce the likelihood of an Auto-DeLeveraging (ADL) event.