What is Contract Insurance?
Contract Insurance is a protective feature that provides a risk buffer for contract trading.
Once enabled, when a user's contract or copy-trading position is closed at a loss, a loss premium of 30% of the closing loss amount will be charged, and the user can receive 100% compensation for the order's loss. When a user's contract or copy-trading position is closed for a profit, a profit premium of 30% of the closing profit amount will be charged to replenish the insurance fund pool and ensure the system's continued operation.
Contract Insurance Rules
1.Contract Insurance Activation Conditions
The Contract Insurance account balance must be at least 100 USDT to enable Contract Insurance.
Contract Insurance cannot be enabled or disabled while holding contract or copy-trading positions.
During the insurance activation period, fund withdrawals are not supported. Fund deposits are supported.
When the insurance account balance is insufficient to pay the premium, the system will automatically generate a corresponding overdue premium policy.
2.Premium Collection Rules for Profitable Orders
After enabling insurance, if a user's contract or copy-trading position is closed at a profit, premiums will be charged according to the following rules:
- For each profitable order, a profit premium of 30% of the closing profit amount will be charged.
- The profit premium will be deducted directly from the contract account.
Example: A closing profit of 100 USDT results in the system charging 30 USDT as the profit premium.
3.Compensation and Premium Collection Rules for Loss Orders
After enabling insurance, if a user's contract or copy-trading position is closed at a loss, compensation will be provided according to the following rules:
Compensation Threshold
- Every time the cumulative closing loss reaches 100 USDT, a policy is automatically generated.
- Loss amounts below 100 USDT are automatically accumulated, and a policy is generated for every 100 USDT reached.
Loss Premium
- For each policy generated, a loss premium of 30% must be charged, i.e., 30 USDT.
- The loss premium will be deducted simultaneously when the policy is generated, in order to replenish the insurance fund pool and maintain the normal operation of the insurance system.
Policy Compensation Mechanism
- The maximum cumulative compensation for each policy is 100 USDT.
- After a policy is generated, in an active state, it will take effect at 00:00 (UTC+8) the next day, with compensation benefits distributed on a daily basis.
- If there are still open contract or copy-trading positions at the time a policy is generated, the newly generated policy will not take effect. The policy status will change to "Active" only after all positions are fully closed.
- Each policy distributes 1 USDT per day, with a maximum distribution period of 100 days. The policy will automatically expire once the cumulative distribution reaches 100 USDT or the 100-day release period is completed, whichever occurs first.
- If a policy enters a frozen state during the distribution period, no benefits will be generated for the corresponding period, and the undistributed portion will not be issued retroactively or postponed.
Claiming Rules
- The daily distributed benefits will go into [Pending Rewards].
- The pending amount must reach 20 USDT before it can be claimed. After claiming, the funds will be transferred to the spot account.
Example:
- For a compensation amount of 100 USDT, the system will simultaneously charge 30 USDT as the loss premium.
- Each policy entitles the holder to a total of 100 USDT in compensation benefit distributions.
4.Premium Restrictions and Policy Maintenance
Premium Restrictions
- When the insurance account balance is insufficient to pay the premium, the system will automatically generate a corresponding overdue premium policy. For every cumulative 100 USDT exceeded, 1 overdue premium policy will be generated.
- When an overdue premium policy is generated, the system will automatically deduct the current available balance in the insurance account to prioritize offsetting the overdue amount.
- After an overdue premium policy is generated, if the premium is not paid within 48 hours, the overdue policy will be automatically closed and become invalid, and cannot be recovered or renewed.
Policy Maintenance Mechanism
After a policy takes effect, users must continuously meet the contract trading volume maintenance requirement; otherwise, the normal benefit distribution of the policy will be affected.
Trading Volume Calculation Rule:
Required Contract Trading Volume (USDT) = (Active Policy Amount + Frozen Policy Amount) × 7
Contract Trading Volume Statistics Scope: Contract opening and closing + Contract copy-trading opening and closing.
Freezing Rules
- If the user's cumulative contract trading volume over the past 7 days is lower than the maintenance trading volume required by the system, all policies will automatically enter a frozen state.
- During the policy freezing period, daily benefit distribution will be suspended, and no benefits will be generated during the freezing period.
- After freezing, the user only needs to make up the corresponding maintenance trading volume, and the system will automatically unfreeze the policy. The policy will resume normal benefit distribution on the following day.
Forfeiture Rules
- If a policy is frozen continuously for more than 7 days, all frozen policies will automatically become invalid.
- After a policy becomes invalid, it will be permanently forfeited, cannot be recovered, and will no longer generate any benefits.
5.Important Notes
- Contract Insurance is a trading risk buffer mechanism, not a principal-protected or guaranteed return product.
- Profits and losses are based on the realized profit and loss after position closing.
- Users should enable and use Contract Insurance reasonably based on their own risk tolerance.
6.Policy Status Description
| Status | Description |
| Active | Policies eligible for daily benefit distribution. |
| Pending Payment | The policy has been generated, but the premium has not been paid. After payment is completed, the policy will proceed to the activation flow. If payment is not made within 48 hours, the overdue policy will be automatically closed and become invalid. |
| Pending Activation | The policy deduction or payment has been completed, but the account currently holds open positions. Once the account has no open positions, the policy will automatically become Active. |
| Frozen | The policy has not met the maintenance trading volume requirement, and benefit release is currently suspended. After the required trading volume is met, benefit distribution will automatically resume the following day. |
| Completed | The policy has reached the maximum compensation amount or the longest release period, and has automatically ended. No further benefits will be generated. |
| Invalid | The policy has become invalid due to reaching the freezing limit, non-payment, or other rule-based reasons. Once invalid, it cannot be recovered and will no longer generate benefits. |