💸 Where Does Your Money Go When You're Liquidated? 😵💫 😭
Let’s break it down! 👇
1️⃣ The Exchange (e.g., Binance) collects the liquidation fee, which is taken from your collateral. 💰
2️⃣ Other Traders (on the opposite side of your trade) may profit because your position is sold to cover their gains. 📈
3️⃣ Insurance Fund: If there’s extra collateral after covering losses and fees, it goes to the exchange’s insurance fund to protect against extreme market events. 🛡️
💡 In short, the exchange and the counterparties are the winners: Binance takes the fee, and opposing traders secure their profits! 🚀
