> For the complete documentation index, see [llms.txt](https://pounder-protocol.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pounder-protocol.gitbook.io/docs/utility-of-usdpound-trading-fees/insurance-funds.md).

# Insurance Funds

The Insurance Funds serves to achieve price stability and long-term sustainability of the Pounder Protocols $POUND token by maintaining a consistent 1,75% daily rebase rate to all $POUND token holders.\
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**IF** (Insurance Funds) is a separate wallet

The Insurance Fund plays a critical role in the Pounder Protocol's auto staking.

IF is a separate wallet that collects funds to support and stabilize the Liquidity pool. This is particularly useful in the event of a sharp sell-off that might drain the liquidity pool. This can cause problems because liquidity is what allows the buying and selling of the $POUND token. The IF provides a liquidity reserve and prevents this from happening during a sharp sell-off.\
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IF Wallet address: [0x2a37b4a4aa001b7d951cbb53c3f310eeb375b111](https://bscscan.com/address/0x2a37b4a4aa001b7d951cbb53c3f310eeb375b111)