> For the complete documentation index, see [llms.txt](https://docs.zerolend.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.zerolend.xyz/security/insurance-fund.md). # Insurance Fund This section talks about our unique approach to add another safety layer for our users. Our Insurance Fund is a reserve of funds set aside to cover unexpected losses or events within the ZeroLend ecosystem. A percentage of fees generated by the platform is allocated to this fund, ensuring it grows over time. The primary purpose of the Insurance Fund is to safeguard user assets and provide compensation in the event of unforeseen circumstances. In traditional finance, banks often insure their customers' deposits. This insurance acts as a safety net, ensuring that depositors' funds are protected up to a certain limit even if the bank faces financial difficulties. Similarly, at ZeroLend, we are committed to building a safety net for our users. ## ZeroLend is the only protocol with an Insurance Fund ZeroLend is the only lending protocol on zkSync that has a native insurance fund. Our insurance fund is our commitment to providing a secure and reliable platform for our users. We aim to create a financial cushion to protect user assets in unexpected events by setting aside some fees to fund the insurance fund. ## How the Insurance Fund Works? In the event of issues like smart contract vulnerability or system failure, the insurance fund can be utilized to compensate affected users. This compensation will cover losses and secure users from financial harm. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.zerolend.xyz/security/insurance-fund.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. 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.