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![0x_bhig_sama_ Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1760804899359449088.png) 0xbhigsama (dYdX) [@0x_bhig_sama_](/creator/twitter/0x_bhig_sama_) on x XXX followers
Created: 2025-07-23 13:04:41 UTC

Ever wonder what protects traders on dYdX when things go south?

It’s the INSURANCE FUND, a protocol-level safety net.

Funded by liquidation fees, this reserve steps in when a position goes bankrupt and the margin can’t fully cover the loss.

Instead of letting bad debt pile up, the dYdX Insurance Fund absorbs the hit, keeping the protocol solvent and the trading environment stable.

This is how dYdX Chain balances high-speed trading with responsible risk management, not just speed, but sustainability.

So next time you enter a position on dYdX, know that it’s not just fast, it’s built with safety in mind. That’s real DeFi maturity.

Let's keep building dYdX 💯 🔥

![](https://pbs.twimg.com/media/Gwi1dK-XgAILq7l.jpg)

XXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1948006354393678294/c:line.svg)

**Related Topics**
[protocol](/topic/protocol)
[debt](/topic/debt)
[default risk](/topic/default-risk)
[chapter 11](/topic/chapter-11)
[insurance](/topic/insurance)

[Post Link](https://x.com/0x_bhig_sama_/status/1948006354393678294)