XT.COM USDT-M Contract Risk Protection Fund Webpage Display
The Risk Protection Fund is a safety mechanism that protects bankrupt traders from adverse losses and ensures that profitable traders receive their full profits.
The main purpose of the XT Risk Protection Fund is to reduce the occurrence of forced liquidation by counterparties. When the counterparty is forced to close the position, it will automatically force to close the position of the other trader so as to fill the position of the bankrupt trader.
In these cases, a profitable position using high leverage is more likely to experience automatic reduction. The Risk Protection Fund will use the margin of non-bankrupt users to cover the losses of bankrupt users (negative balance accounts) to solve the above problems.