Bybit Launches $8M Insurance Fund to Reduce Liquidation Risk by Over 200%
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Insurance Fund Innovation: Bybit has introduced a new insurance fund system that groups contracts by risk to enhance fund efficiency and reduce liquidation triggers, with an expected reduction in liquidation risk by over 200%.
- Capital Allocation Strategy: The new system allocates $8 million for newly listed USDT perpetual contracts, boosting early-stage protection, particularly during volatile market conditions, ensuring user fund safety.
- Real-Time Monitoring Mechanism: Traders can now monitor fund balances in real-time using API tools, allowing for timely adjustments to ADL settings during sharp market fluctuations, thereby protecting user positions.
- Enhanced Coverage for Contracts: The new pooled model increases loss absorption per contract by over 200%, providing better user protection during high-volume or unstable trading periods, which enhances market confidence.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
