Disclaimer: Margin services are provided by OKCoin Technology Company Limited and are only available to residents in certain regions. Margin services are NOT available to residents in the United States, European Union, and Singapore. Please refer to the Margin Trading User Agreement for more details and eligibility requirements.
OKCoin has an insurance fund to protect its customers in case a liquidation is filled below bankruptcy prices, and to settle futures trading incidents.
When a liquidation occurs, if the liquidation engine is able to close the position at a higher price than bankruptcy price, the extra premium is added to the insurance fund.
If the liquidated positions are filled worse the bankruptcy price or are not filled during delivery, the losses are socialized and covered by the insurance fund.
Margin call losses are covered first by the insurance fund. If the insurance fund can’t cover the loss, the remaining amount is socialized with a clawback.