Bybit launches new insurance fund mechanism for USDT perpetual contracts.
Key receivers
Bibit introduced special insurance fund pools to increase losses and reduce unnecessary automatic liquidation in USDT perpetual contracts. The new structure increases loss coverage by over 200% in a single contract and features automatic limits and real-time monitoring.
Share this article
According to Tuesday's announcement, Baybit is upgrading its insurance fund system to reduce the frequency of automatic transfer events and provide stronger protection during periods of high volatility.
The new system introduces two unique insurance fund pools: the new List Insurance Fund Pool, which covers the first 30 days of new USDT Perpetual listings, and the Portfolio Insurance Fund Pool, which supports up to nine contracts with corresponding risk profiles.
The structure aims to increase the loss-absorbing capacity by more than 200%, effectively reducing the risk of ADL activation.
The rollout will be extended to eligible business pairs over a period of two months. Traders can track insurance fund data through an API, while Bibit maintains the ability to intervene in market conditions by adjusting limits or injecting capital.
