Bybit rolls out new insurance fund mechanism for USDT perpetual contracts
Bybit launched new insurance fund pools to boost loss absorption and reduce Auto-Deleveraging for USDT perpetual contracts.Summary
Bybit has upgraded its insurance fund system to minimize the frequency of Auto-Deleveraging (ADL) and provide enhanced protection during extreme market volatility for USDT perpetual contracts. The new mechanism features two specialized pools: the New Listing Insurance Fund Pool, covering the first 30 days of new USDT Perpetual listings, and the Portfolio Insurance Fund Pool, supporting up to nine contracts with correlated risk profiles. This restructuring is designed to increase loss-absorption capacity by over 200%, thereby reducing the risk of ADL activation. The rollout will occur over approximately two months across eligible trading pairs, with traders able to monitor data via API, while Bybit retains the authority to intervene by adjusting thresholds or injecting capital during severe market conditions.
(Source：Crypto Briefing)