ZKX Unveils ‘Isolated Funds’ to Minimize Losses for Users

July 19th saw leading perpetual futures DEX, ZKX, officially introduce a new feature to its already broad suite of offerings.

So-called ‘Isolated Funds’ are purpose-built to protect the protocol’s users from losses incurred in times of high volatility - a phenomenon seen a great deal within the emerging market that is digital assets.

Put simply, the new feature, which is also known as the ‘Isolated Insurance Fund’, is designed to do two things. Namely…

• Cover trading losses during periods of high market volatility.
• Protect against leveraged losses incurred in specific markets.

What’s more, each of the assets offered for trading by ZKX implements its own tailored risk-management strategy. Naturally, different crypto assets possess differing market features and ZXK’s bespoke approach to this risk seems to suggest a high level of sophistication and market understanding amongst the project’s developers.

According to the ‘How It Works’ section of the feature’s documentation, it consists of three key pillars…

• Holding Fund: Safely holds user funds on Layer 2 (Starknet) in a self-custodial account.
• Insurance Fund: Covers losses from trading activities.
• Revenue Fund: Trading fees contribute to the revenue fund. 20% of this fund will be distributed daily to stakers. Automated reward distribution for users is in progress.

The documentation also promises the future introduction of ‘Automated Deleveraging’ - A feature that…

“manages the platform's risk during extreme market conditions where insurance funds fall short. In such cases, ADS in ZKX will liquidate users at the market price if the insurance fund can't cover a loss, preventing total fund loss and offering better protection for traders.”

About ZKX…

ZXK is a leader in both the decentralized finance (DeFi) landscape, as well as in the perpetual futures sub sector specifically.

It is native to Ethereum and its well-known layer-2 scaling network, Starknet - a move that allows it to access the Ethereum ecosystem’s security and user base, while also providing fast and low-cost transactions.

ZKX’s approach is unique in providing a smooth user experience and a wholly gamified approach to cryptocurrency trading - “leading the way where SocialFi meets DeFi”.

The protocol is supported by leading investors such as HaskKey Capital and Orange DAO, as well as top CEXs like Crypto[dot]com and HTX Ventures.

To learn more about ZKX and its offerings, make sure to visit the project’s official website and follow @ZKXprotocol on X/Twitter. 

[Disclaimer: This is a paid press release. BSCN does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article as part of a package for 15,000 ZKX tokens. Readers should do their own research before taking any actions related to the company. BSCN is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.]