# Insurance Funds Reya Network includes a system of insurance funds to backstop potential collateral pool insolvencies. These insurance funds accumulate the greater part of the liquidation fees, and fill the shortfall when losses exceeded the deposited margin. But two important aspects: 1. There are set limits on how much the insurance funds can cover (depending on size of account). ADL at a loss would kick in beyond that limit. 2. The insurance funds plug in the shortfall, but only **realized shortfalls resulting from the liquidation** (i.e., measured as the realized loss of the liquidated account resulting from the liquidation) 3. The insurance funds plug the shortfall to the pool as whole and not to any particular account. A development of the full ecosystem of exchanges on top of Reya Network will most likely introduce a second layer of backstop after the insurance funds. --- # Agent Instructions: 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: ``` GET https://docs.reya.xyz/trading/liquidation-engine/insurance-funds.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.