#What Are the Recent Changes to Bybit's Insurance Fund System?
Recent updates from Bybit are designed to enhance the security and reliability of trading on their platform, specifically surrounding USDT perpetual contracts. Bybit has launched specialized insurance fund pools aimed at bolstering loss absorption and mitigating the impact of auto-deleveraging events.
How Do the New Insurance Fund Pools Work?
The upgraded system introduces two distinct Insurance Fund Pools:
The New Listing Insurance Fund Pool, which specifically serves to protect the first 30 days of newly listed USDT perpetual contracts.
The Portfolio Insurance Fund Pool, which provides coverage for up to nine contracts that share similar risk characteristics.
This structured adjustment aims to enhance the overall loss cover by over 200%. By increasing the loss-absorption capacity, the risk of auto-deleveraging—the involuntary liquidation of trader positions during market volatility—is significantly reduced.
What Should Traders Expect?
The implementation of these insurance pools is scheduled to roll out over the next two months and will gradually cover additional eligible trading pairs. Traders have the ability to monitor the insurance fund data through API access, which provides real-time insights into coverage levels and thresholds.
Additionally, Bybit retains the authority to modify thresholds or infuse capital into the fund in response to extreme market conditions, further protecting their users and enhancing market stability. This proactive approach is meant to reassure traders, especially during volatile periods, that their investments are better safeguarded against unexpected market shifts.