Cryptocurrency trading platform BitMEX, which allows investors to leverage their positions up to 100x, has grown its insurance fund to more 26,453 BTC — worth roughly $212.5 million.
According to publicly available data first highlighted by The Block, BitMEX’s insurance fund has grown from only 162 BTC at the start of 2018 to the level seen today. This fund has gained roughly 6,000 BTC since the start of 2019, which, at the time, was worth roughly $77.5 million.
BitMEX uses the insurance fund to avoid auto-deleveraging traders’ positions by targetting unfilled liquidation orders before they are taken over by the auto-deleveraging system.
As a result, the insurance fund grows from liquidations that were able to be executed in the market at a price better than the bankruptcy price. In popular parlance, as more traders get rekt, the larger the fund grows.
More: BitMEX’s Insurance Fund
Image: Marco Verch / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.