# Insurance Fund

Although the margin and liquidation engine protects LPs from LT losses, Opus will add another layer  of protection via an insurance fund to cover cases of unrecoverable LT losses. OpusTreasury  manages the insurance fund and will escrow a percentage of the LP fees paid to Opus. &#x20;

The state of the insurance fund will be continuously disclosed and fully transparent to all Opus users via their dashboards. If the insurance fund is depleted, LT losses will be socialized by the LPs while  the fund is replenished. The insurance fund will initially contain no funds and will increase over time  as LP management fees are collected and released.&#x20;