LBank, a global cryptocurrency exchange, has launched a $100 million Futures Risk Protection Fund. This new fund aims to protect traders during unexpected market volatility.
The initiative comes as part of LBank’s commitment to providing a safe and fair trading environment. It offers extra support during sudden price spikes, also known as wick events.
LBank Launches $100M Futures Risk Protection Fund
In these events, the K-line price deviates by more than 2% from the market reasonable price within one minute and then quickly reverts.
The fund covers the top 100 futures trading pairs by market capitalization, including major assets like BTC, ETH, and SOL, the announcement stated.
How the Fund Works?
The protection mechanism is triggered during price spikes that lead to forced liquidations or stop-loss losses. If a trader is affected, LBank will compensate them with 120% of the loss.
This compensation is credited in USDT to the trader’s spot account within 48 hours. LBank determines the market reasonable price using a composite value from the top five derivatives rankings on CoinMarketCap. This method ensures that the compensation process is fair and based on reliable data.
LBank also announced an additional reward measure. Every time a price spike occurs, the exchange will distribute an extra 10,000 USDT from the fund pool. This extra amount is shared proportionally among all holders of the affected asset.
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These rewards are credited directly to the traders’ futures accounts within the same 48-hour timeframe. This reward system is designed to further ease the impact of sudden market changes on users.
A New Benchmark in Risk Management
LBank’s initiative sets a new benchmark in the industry. The launch of this fund is one of the most comprehensive safeguards in the market today.
It shows that LBank is ready to turn market volatility into an opportunity for traders rather than a setback. By offering 120% compensation, the exchange aims to restore user confidence during unpredictable market events.
The firm believes that protecting traders is essential for long-term growth in the crypto trading industry.
The fund covers a wide range of assets by focusing on the top 100 futures trading pairs. This broad coverage means that many traders will benefit from the program.
LBank has taken significant steps to ensure that its users are not left in the lurch during periods of abnormal market movements. With the inclusion of additional airdrop rewards, the exchange further incentivizes active participation.
Strengthening Market Fairness
This initiative comes at a time when market fairness and user protection are top priorities for many traders. LBank’s new fund is a strong move towards reducing the risks that come with abnormal market volatility.
It is also a clear sign of the exchange’s commitment to innovation in risk management. By offering fast compensation and extra rewards, LBank is showing that it values its users. The fund aims to boost confidence in the market and reduce the fear of unexpected losses.
LBank’s $100 million Futures Risk Protection Fund is expected to influence the broader crypto trading market. The initiative may set new standards for risk management and trader security.
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