The move comes amid continued volatility in crypto markets, where sudden price swings can trigger forced liquidations, affecting both traders and market integrity.
The new system introduces pools of specialized insurance funds to provide targeted protection based on contract type and correlated risks.
Specialized insurance fund pools
The updated mechanism includes two dedicated pools. The New Listing Insurance Pool is for newly listed USDT perpetual contracts in their first 30 days, starting with a minimum balance of $8 million. This higher capital allocation provides additional protection during the volatile post-listing phase, when sudden price fluctuations are most common.
The portfolio insurance fund portfolio focuses on groups of contracts that share correlated sources of volatility or liquidity. Each pool can consist of up to nine contracts and starts with an initial balance ranging from $2 million to $4 million. Continuous monitoring ensures that draws above a defined threshold of 30% over eight hours can trigger ADL protections if the pool balance is insufficient.
To improve users’ trading experience and reduce unnecessary automatic deleveraging (ADL) events during high volatility, @Bybit_Official establishes an updated insurance fund mechanism. 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 next day insurance fund balances and drawdown ratios in real time via the API interface. All contracts are subject to continuous observation based on metrics such as open interest, liquidity depth, volatility patterns, trading volume and fundamentals of the underlying project.
Contracts in the new listing pool may migrate to the insurance fund’s main pool or to an appropriate portfolio pool after the observation period, while contracts within portfolio pools may be reallocated based on correlated risks or liquidity changes. In extreme market conditions, Bybit reserves the right to adjust ADL thresholds or manually add funds to provide additional protection.
Learn more about Bybit
Bybit announced a new way for Mantle users to easily earn stable coin yield. With a one-click Mantle Vault powered by CIAN, users can now access automated on-chain strategies that maximize returns on their stablecoin holdings.
Stable corner performance, simplified.@Mantle_Official users can now access @CIAN_protocolAutomated strategies via a Mantle Vault in one click on Bybit 💪
👀 See how it works:
– Bybit (@Bybit_Official) December 23, 2025
This integration simplifies yield generation by automatically managing technical details, allowing users to benefit from native and automated strategies without manual management or complex configuration.
