Insurance Fund

The Insurance Fund is an on-chain, verifiable reserve maintained by Falcon Finance to provide an additional layer of protection for protocol users and to support orderly USDf markets during periods of exceptional stress. The fund is intended to grow alongside protocol adoption through periodic allocations.

Insurance Fund Address

0x432CDcc4516B21302985b639Ef9a7853727A4e49

The Insurance Fund exists to safeguard the protocol during adverse conditions and to promote orderly markets for USDf. Its primary role is to absorb and smooth rare periods of negative yield performance by providing a financial buffer. When market liquidity for USDf becomes dislocated, the fund may operate as a market backstop by purchasing USDf in open markets in measured size and at transparent prices, with the objective of restoring orderly trading and minimizing risk. During episodes of exceptional, system-wide stress, Falcon Finance may supplement the fund and deploy capital to preserve protocol stability and continuity of operations.