> For the complete documentation index, see [llms.txt](https://docs.zeta.markets/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.zeta.markets/zeta-protocol/exchange-architecture/margin-system/liquidations-and-insurance/socialized-loss.md).

# Socialized Loss

If both the liquidation process and insurance fund fail to cover over-bankruptcy, losses will be shared across depositors in the Zeta platform.

This will be implemented by applying an over-bankruptcy ratio to withdrawals ensuring that the platform has sufficient capital to continue operating. Withdrawals will be subject to the below ratio:

$$
AB \* ((DP)/(DP+BA))
$$

*where:*

* *AB = Account Balance*
* *DP = Deposits To Platform*
* *BA = Bankruptcy Amount*