Bybit Launches New USDT Insurance Fund

Bybit Enhances Insurance Fund for USDT Perpetual Contracts

• Bybit has launched specialized insurance fund pools to improve loss absorption and decrease Auto-Deleveraging in USDT perpetual contracts.
• The new structure enhances loss coverage per contract by over 200% with automated thresholds and real-time monitoring.
• The upgrade introduces two Insurance Fund Pools: the New Listing Insurance Fund Pool for the first 30 days of new listings, and the Portfolio Insurance Fund Pool supporting up to nine contracts with correlated risks.
• This mechanism aims to reduce Auto-Deleveraging events, increasing protection during high volatility periods.
• The rollout will occur over approximately two months for eligible trading pairs, with data accessible via API.

Bybit’s new insurance fund system significantly boosts loss-absorption capacity, reducing Auto-Deleveraging risk in USDT perpetual contracts by over 200%. The enhanced protection applies across various trading pairs within a two-month implementation period.