The fund loss will not exceed the principal, and the fund loss is only a part of the loss, not a total loss. In fund financing investment, if the fund loses money to a certain extent, it will be liquidated. After the fund loss exceeds the standard set by the fund management company, all the assets of the fund will be converted into cash and the proceeds will be distributed to the holders.

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Fund liquidation refers to the fund management company with poor fund performance and small business scale, which can not continue to operate, realizing the fund assets and distributing all the assets to the holders.