A Zero Liquidation Pool is a risk management mechanism implemented by certain platforms that allows users to trade derivatives or leverage positions without the risk of liquidation. In traditional trading, when the value of an asset drops significantly, a trader might face liquidation, where their position is automatically closed to prevent further losses.In a Zero Liquidation Pool, users can participate in trading activities while their assets are safeguarded. This is achieved by pooling funds from various participants to cover potential losses. If a user’s position falls below a certain threshold, the pool can absorb the loss rather than liquidating the individual’s assets.This system encourages greater participation by lowering the risk associated with trading on margin or leverage. It allows traders to hold onto their positions longer and ride out market volatility without the fear of sudden liquidation. Overall, a Zero Liquidation Pool enhances trading flexibility and can attract more users to the platform by providing them with a safety net for their investments.