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>>Binance used its insurance fund to address losses from yesterday’s market downturn, and this is what's happening now.

Binance used its insurance fund to address losses from yesterday’s market downturn, and this is what's happening now.

crypthub

about 23 hours ago

Insurance Fund Activity

Binance data reveals the exchange’s shared insurance fund balance for BTC, ETH, and BNB USDT margined contracts diminished during the recent market crash. The balance decreased from $1.23 billion to $1.04 billion. A total of $188 million was utilized for risk management amid the heightened volatility. The hedge fund balance also experienced a similar decline, falling from $1.22 billion to $1.03 billion.

Secure Asset Fund for Users (SAFU)

Binance created the Secure Asset Fund for Users (SAFU) in July 2018 to safeguard user assets. It serves as an emergency fund intended to compensate users affected by market crashes or systemic risks. A portion of Binance's trading fees contribute to the fund’s growth over time. The fund was valued at $1 billion in January 2022 and held 1 billion USDC in April 2024.

Fund Value and Holdings

The fund’s value fluctuates according to prevailing market conditions. While the BTC portion of the fund increased from 65,370 BTC to 78,040 BTC, the overall dollar value decreased. SAFU is designed to provide a safety net for users experiencing losses.