• Insurance Fund Coverage: As described, Roxom’s Insurance Fund acts as a backstop for any losses beyond collateral. From a risk control perspective, it means that for any liquidation, if the execution price is worse than the trader’s bankruptcy price (leading to a shortfall), the Insurance Fund will cover the deficit. Traders on the winning side are thus protected and get their full due. This is a post-trade safety net ensuring that individual defaults do not propagate losses.
  • Monitoring and Manual Intervention: Roxom’s risk management team continuously monitors the platform’s metrics: order book depth, spreads, trading volumes, index feed health, and any anomalies. If an issue arises – for example, a data feed error causing bad quotes, or a sudden liquidity withdrawal by a market maker causing illiquidity – the team has protocols to intervene. They can take actions such as:
    1. Removing or adjusting faulty price feeds from index calculations (to maintain Mark Price integrity).
    2. Calling in backup liquidity providers or encouraging market makers to step in if needed to restore order book depth.
    3. Tightening risk parameters on the fly (for instance, temporarily lowering maximum leverage, narrowing price bands, halting certain order types) under established emergency procedures. Any such changes would be communicated to users as appropriate.
    These measures are there to address unforeseen situations in real-time and uphold a safe trading environment.