# Insurance Fund Nebula maintains an insurance fund to protect users from unexpected losses. #### **Risk Mitigation Reserve** The insurance fund accumulates resources from: * A portion of protocol fees * Liquidation penalties It acts as a financial buffer against unforeseen events, such as smart contract exploits or extreme market volatility. #### **User Protection** In significant loss events, the insurance fund compensates affected users, enhancing confidence in the protocol’s safety measures. --- # 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://nebula-18.gitbook.io/nebula/tech-overview/nebula-technology-overview/risk-management-and-security/insurance-fund.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.