This move comes amid ongoing volatility in crypto markets, where sudden price swings can trigger forced liquidations, affecting both traders and market integrity.
The new system introduces specialized Insurance Fund Pools to provide targeted protection based on contract type and correlated risks.
Specialized Insurance Fund Pools
The updated mechanism features two dedicated pools. The New Listing Insurance Fund Pool caters to newly-listed USDT Perpetual Contracts during their first 30 days, starting with a minimum balance of $8 million. This higher capital allocation offers extra protection during the volatile post-listing phase, when sudden price swings are most common.
The Portfolio Insurance Fund Pool focuses on groups of contracts that share correlated volatility or liquidity sources. Each pool can include up to nine contracts and starts with an initial balance ranging from $2 million to $4 million. Continuous monitoring ensures that drawdowns beyond a set 30% threshold over eight hours can trigger ADL protections if the pool balance is insufficient.
To improve users’ trading experience and reduce unnecessary Auto-Deleveraging (ADL) events during high volatility, @Bybit_Official is rolling out an updated insurance fund mechanism.https://t.co/Jn23j2G9yn pic.twitter.com/PcEmWariB2
— ICO Drops (@ICODrops) December 24, 2025
Bybit will gradually roll out these pools to eligible trading pairs over approximately two months starting December 19, 2025. Traders can monitor the next-day insurance fund balances and real-time drawdown ratios via the API interface. All contracts undergo continuous observation based on metrics including open interest, liquidity depth, volatility patterns, trading volume, and the underlying project’s fundamentals.
Contracts from the New Listing Pool may migrate to the Main Insurance Fund Pool or an appropriate Portfolio Pool after the observation period, while contracts within Portfolio Pools may be reassigned based on correlated risks or liquidity changes. During extreme market conditions, Bybit retains the right to adjust ADL thresholds or manually add funds to provide extra protection.
More About Bybit
Bybit announced a new way for Mantle users to earn stablecoin yield with ease. Through a one-click Mantle Vault powered by CIAN, users can now access automated, on-chain strategies that optimize returns on their stablecoin holdings.
Stablecoin yield, simplified.@Mantle_Official users can now tap into @CIAN_protocol‘s automated strategies through a one-click Mantle Vault on Bybit 💪
👀 See how it works: https://t.co/34eeP6PfUD https://t.co/VgdhioP9kP
— Bybit (@Bybit_Official) December 23, 2025
This integration simplifies yield generation by handling the technical details automatically, allowing users to benefit from native, automated strategies without manual management or complex setup.
