> For the complete documentation index, see [llms.txt](https://docs.wowswap.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wowswap.io/about/insurance-fund.md). # 💰Insurance Fund We make the best effort to make WOWswap as safe as possible for everyone, but in case of a black swan event some trades theoretically can be liquidated too late, so to mitigate possible losses for liquidity providers the protocol builds up the insurance fund, which receives 2.5% of every swap’s net profit. If a token’s price drops significantly below the liquidation price of a particular swap, then, after liquidating this swap, the liquidity pool might incur a loss. Since token prices can change dramatically as a result of one sale transaction or within one block, it is technically impossible to liquidate all leveraged trading positions without losses. Therefore, WOWswap protocol created an internal insurance fund, which receives a small portion of profit from every profitable leveraged swap and uses these funds to cover losses caused by certain liquidated swaps. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.wowswap.io/about/insurance-fund.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.