# Insurance fund The DerivaDEX Insurance Fund is a reserve designed to protect traders from losses due to unexpected liquidations or extreme market events. It serves as a safeguard to cover negative balances when a trader's position is liquidated, ensuring that other users are not affected (minimizing the occurence of auto de-leveraging, or ADL). The fund is maintained by collecting all USDC trading fees and liquidation penalties, and it is managed through the DerivaDAO governance system. For more information on the insurnance fund, see [this article. ](https://medium.com/derivadex/what-is-an-insurance-fund-49410775d41e) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.derivadex.io/platform-features/insurance-fund.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.