The post Bybit rolls out new insurance fund mechanism for USDT perpetual contracts appeared on BitcoinEthereumNews.com. Key Takeaways Bybit has introduced specializedThe post Bybit rolls out new insurance fund mechanism for USDT perpetual contracts appeared on BitcoinEthereumNews.com. Key Takeaways Bybit has introduced specialized

Bybit rolls out new insurance fund mechanism for USDT perpetual contracts

Key Takeaways

  • Bybit has introduced specialized insurance fund pools to enhance loss-absorption and reduce unnecessary Auto-Deleveraging in USDT perpetual contracts.
  • The new structure increases loss coverage per contract by over 200% and features automated thresholds and real-time monitoring.

Bybit is upgrading its insurance fund system to reduce the frequency of Auto-Deleveraging events and offer stronger protection during high volatility, according to a Tuesday announcement.

The new mechanism introduces two specialized Insurance Fund Pools: the New Listing 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 correlated risk profiles.

The structure aims to increase loss-absorption capacity by over 200%, effectively reducing the risk of ADL activation.

The rollout will extend to eligible trading pairs over about two months. Traders can monitor insurance fund data via API, while Bybit maintains the ability to intervene by adjusting thresholds or injecting capital during extreme market events.

Source: https://cryptobriefing.com/bybit-insurance-fund-mechanism-usdt/

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