Bybit has upgraded its insurance fund system for USDT perpetual contracts to enhance investor protection and risk management.
The exchange launched two new insurance fund pools: a New Listing Insurance Fund Pool that safeguards the first 30 days of new USDT perpetual listings, and a Portfolio Insurance Fund Pool that can cover up to nine contracts with correlated risk.
The new structure increases loss-absorption capacity by more than 200%, aiming to reduce the likelihood of Auto-Deleveraging (ADL) events during periods of high market volatility. It also introduces automated thresholds and real-time monitoring to support smoother trading.
Bybit will offer transparent access to insurance fund data via API and retain the flexibility to adjust thresholds or inject capital in extreme market conditions.
The rollout will span roughly two months and be applied gradually to eligible trading pairs, providing enhanced protection for traders in the evolving crypto markets.
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