Insurance fund

A portion of net fees collected by Hyperliquid are directed towards the Hyperliquid insurance fund. Though "fund" is used to match the nomenclature of other exchanges, the Hyperliquid insurance fund will be governed by the usual decentralized L1 governance procedure.

For special circumstances where the platform behaved unexpectedly, the insurance fund may be used to pay affected users.

The purpose of what is called the "insurance fund" on other platforms is to take unwanted liquidations. This specific role of the insurance fund is performed by the Liquidator vault, which is the only liquidator on Hyperliquid.

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