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The fund grows over time through three main channels:
  1. Initial Seeding:
    At launch, Roxom will contribute BTC from its own corporate capital or reserves to establish a strong foundation for the Insurance Fund. This ensures sufficient liquidity to cover early incidents before organic growth takes place.
  2. Liquidation Gains (Excess Margin):
    Whenever a position is liquidated and closed at a price better than the bankruptcy price—meaning there is collateral left over after closing—that remaining margin is automatically transferred to the Insurance Fund.
    The liquidated trader does not recover this excess; it is treated as a contribution to the fund. Under normal market conditions, with occasional liquidations, the fund grows steadily without requiring any direct fee from users.
  3. Discretionary Allocations:
    Roxom may, at any time, transfer additional assets to the Insurance Fund, rebalance resources across product-specific pools, or utilize the fund as part of its broader strategy for risk mitigation, operational coverage, or liquidity support.
    Such decisions shall follow internal governance policies and, where applicable, require approval from the Risk Committee and the Board of Directors.