Upcoming Changes to Our Insurance Fund

As part of our operations, BitMEX evaluates its Insurance Fund from time to time. Most recently, the team analysed the behaviour of the BitMEX liquidation algorithm during periods of market stress (e.g. the 10 October market crash) and conducted a comparison to Insurance Funds across the crypto industry.

In light of our recent evaluation, BitMEX will be rebalancing its Insurance Fund to better reflect the risks in its markets. The move comes after a thorough analysis which reaffirmed the stability of the BitMEX liquidation algorithm during market volatility, and the expectation that our platform will be providing more than eight times better coverage for traders’ profits when compared to industry peers. 

The rebalancing will have no impact on our traders, and all operations at BitMEX remain business as usual. BitMEX will remain significantly over-collateralised with respect to open interest compared to other platforms. Our Insurance Fund processes have proven to work well in all market conditions over the last 11 years and we expect to maintain continuous stability moving forward. 

What is Changing?

After assessing the requirements, we will be rebalancing our Insurance Fund to approximately 3,600 XBT (BTC) and just over 30,000,000 USDT. 

To get a better picture of the robustness of the Insurance Fund following the rebalancing, the table below lists the Insurance Fund Coverage (calculated as the ratio between the Insurance Fund or equivalent and Open Interest) of six crypto exchanges including BitMEX.

BitMEX’s Insurance Fund Coverage remains, on average, more than 10x larger than those of its peers – ranging from being 8x larger than Binance, to 80x larger than HTX. 

In the meantime, if you have any questions please contact Support who are available 24/7. 

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