If the liquidation process and liquidation auction process are insufficient to cover a trader's losses, Thalex has an insurance fund that can be used to cover any remaining losses.
The insurance fund is capitalized by (i) an initial capital contribution from Thalex, and (ii) clearing fees. Clearing fees are the subset of trading fees that Thalex adds to the insurance fund, thereby ensuring an incremental growth of the insurance fund over time (provided that no significant drawdowns occur).
For more information on the insurance fund process and other procedures that Thalex may initiate, please consult the Rulebook.