TechFlow news, December 23 — Bybit will gradually launch a new insurance pool mechanism to handle high volatility and reduce unnecessary ADL (auto-deleveraging) triggers. Under the new mechanism, newly listed USDT perpetual contracts will initially enter a new-asset insurance pool with an initial size of no less than $8 million, providing stronger risk buffering during the opening phase.
After an observation period, contracts will be transferred to a composite insurance pool based on their risk and liquidity characteristics. The composite insurance pool improves capital efficiency and overall risk control by sharing insurance funds across multiple assets and dynamically adjusting asset pairs and pool sizes.
Overall, compared to the previous single-pair standalone insurance pool structure, the new mechanism increases the average insurable loss per asset pair by over 200%, significantly reducing ADL trigger frequency during extreme market conditions and offering users a more stable and predictable trading environment.
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