#What Are AI Sub-Accounts and How Do They Work?
AI Sub-Accounts are the latest innovation from Bybit, introduced on May 20. This new framework creates an essential separation between your main trading account and any activities conducted by your AI agent. By utilizing sub-accounts that remain completely isolated, users can ensure that their primary investment remains untouched while allowing their AI tools to operate within defined parameters.
Users can set limits on contract leverage and determine position sizes to protect their investments. This security measure ensures that an AI bot cannot engage in high-risk activities, such as executing a large leverage trade while you are not monitoring your account.
#How Does This Protect Your Investments?
AI agents that function within this framework are confined to their specific sub-accounts, meaning they cannot access funds or trades in your main account. The API permissions for these agents are tightly controlled, ensuring straightforward risk management that keeps your main assets safe.
You have the ability to define risk parameters, such as maximum leverage ratios and position size caps. If the bot reaches its set limits, it simply stops functioning, thereby preventing unwanted risk exposure.
#How Does This Benefit Retail Traders?
Retail traders using AI trading bots can gain significant peace of mind. By allocating a predetermined amount of capital to a sub-account, you can let an AI agent function within set boundaries. This means your core holdings remain secure regardless of the bot’s activities.
For professionals and institutional traders, the structured environment allows for better management of multiple AI agents. Each can operate within its own sub-account, reducing the impact on the entire trading strategy if one fails.
Additionally, by implementing hard caps on leverage and position sizes, safety nets are established that do not rely solely on a bot’s internal programming. This added layer of security enhances overall risk management protocols.
#How Does This Limit Risk?
Tight restrictions on API permissions further decrease vulnerability to compromised API keys. In the event of a breach in a third-party bot’s system, the risk remains limited to the allocated capital in that sub-account, safeguarding your primary account.