What is Insurance Clearance Fees?

Insurance clearance fees refer to the charges imposed when a trader's position is liquidated and the trader is protected by an insurance mechanism provided by a liquidity provider.

The specific fees associated with insurance clearance are determined by the liquidity provider and may vary depending on the conditions and terms set by the provider. These fees are typically charged in addition to the taker fee and are incurred when a trader's position is liquidated. The purpose of insurance clearance fees is to cover the costs associated with the liquidation process and the insurance coverage provided to the trader.