To avoid the negative effect to the profiters caused by auto-leveraging, Hoo enabled the Risk Fund mechanism. If the liquidation happens at a price better than the bankrupt price, there will be liquidation surplus. 50% of the surplus will be added to the Risk Fund and the rest will be returned to the trader.
Hoo will review and adjust the rate that goes to the Risk Fund. It is generally believed that the more the fund balance is, the higher the rate will be.
For details, please refer to Why Did I Get Liquidated.
Comparing to other exchanges, the Risk Fund rate is only half of theirs.
Jan. 10, 2020