# Stability Fund ### Functions When the supply of PUSD in a specific market (such as ETH/USD) exceeds the long positions excessively, the Stability Fund will implement the Active Redemption Mechanism: The Stability Fund directly buys back PUSD or purchases USDC, then uses the Peg Stability Module (PSM) to mint PUSD on a 1:1 basis with USDC. Those PUSD are subsequently burned, thereby reducing the supply of PUSD in this market and restoring balance. ### Income Sources 1. Liquidation fees: Liquidation clearance fees (2%) are collected when users’ positions are forcibly liquidated. 2. Price impact fees. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.pure.cash/pure.cash/balancing-mechanism/stability-fund.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.