BitMEX's Insurance Fund Is up 50% Since the Start of the Year
- The BitMEX Insurance Fund is up 50% since the start of 2019.
- Fund holds over $300 million, with 0.15% of the total supply of bitcoin.
The BitMEX Insurance Fund has reportedly increased 50% since the start of 2019 and now holds more than $300 million.
BitMEX Insurance Fund Over $300 Million
According to the most recently compiled data, The BitMEX Insurance Fund holds over 31,300 BTC, which is about 0.15% of the total supply for bitcoin. In addition, the fund’s holding has increased more than 50% since the beginning of 2019.
The BitMEX Insurance Fund exists as a safeguard for the use of high-leveraged trades on the crypto derivatives platform. In the event of sudden or massive market movement, the insurance fund can be used to cover unfilled liquidation orders as opposed to forcing users into bankruptcy or skimming on short-sellers.
The Fund has allowed BitMEX to operate its platform without requiring payments from clients who accrue negative account balances in the liquidation of a leveraged trade. Instead, the insurance can be used to cover the difference.
BitMEX has gained notoriety for its success in the crypto derivatives trading marketplace and the huge leveraged trades it allows. In June, the company announced its intention to create a 100x leveraged product in addition to its existing hedging instruments.
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