PANews reported on December 23 that Bybit will gradually implement a new insurance pool mechanism to cope with high market volatility and reduce unnecessary ADLPANews reported on December 23 that Bybit will gradually implement a new insurance pool mechanism to cope with high market volatility and reduce unnecessary ADL

Bybit has launched a new insurance pool mechanism, increasing the risk tolerance of single-currency pairs by over 200%.

2025/12/23 19:38

PANews reported on December 23 that Bybit will gradually implement a new insurance pool mechanism to cope with high market volatility and reduce unnecessary ADL (auto-deleveraging) triggers. Under the new mechanism, newly listed USDT perpetual contracts will first enter the new coin insurance pool, which will have an initial size of no less than $8 million to provide stronger risk buffering during the opening phase.

After the observation period, the contracts will be transferred to a combined insurance pool based on their risk and liquidity characteristics. The combined insurance pool, by sharing insurance funds across multiple currency pairs and dynamically adjusting the currency pairs and size, will significantly improve capital utilization efficiency and overall risk control capabilities.

Overall, compared to the original independent insurance pool structure for single currency pairs, the new mechanism increases the average insurance pool loss that a single currency pair can withstand by more than 200%, and can significantly reduce the frequency of ADL triggers under extreme market conditions, providing users with a more stable and predictable trading environment.

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