Home > Investment Guide > Safeguard System

KOFEX has a financial safeguard system to the participants to provide secure trading environment.

Each member firm should maintain certain levels of pain-in capital. A clearing member should maintain capital of KRW 10 billion or more, and KRW 3 billion or more for a non-clearing member.

Members should make contribution to the capital of the Exchange; KRW 3 billion for a clearing member and KRW 500 million for a non-clearing member.

The Exchange establishes the guarantee fund, to protect members and customers from any losses from possible default risks of clearing and non-clearing members. The guarantee fund is accumulated from each trade by the proportion that is defined by the Exchange's Board of Directors' resolution. (for instance, it is 0.0003% of the contract value in case of KTB futures).