What is Futures Insurance:
XT Futures Insurance is a risk protection service designed by XT for USDT-margined perpetual futures traders. After users actively enable the insurance function, trading losses will automatically accumulate to generate coverage. The platform injects a portion of transaction fees and all collected premiums into the insurance fund pool, which is then periodically used to compensate users holding active coverage.
First Step: Enable Futures Insurance
1.Enter Account Overview Page: Log in to XT.COM App or official website, enter the "Account Overview" interface.
2.Find Insurance Entry:
Locate the "Futures Insurance" in the account.
3.Fund Transfer:
After enabling, please transfer a certain amount of USDT (must be greater than 10 USDT) from "Spot Account" or "Futures Account" to "Futures Insurance Account" for pre-depositing premiums.
4.Turn on Switch:
Click the "Enable Insurance" switch on.
• Note: Before enabling insurance, please ensure you do not hold any open positions. Insurance cannot be enabled with existing positions.
Second Step: coverage Generation and Premium Payment
1.Loss Accumulation:
After enabling insurance, every loss you incur in USDT-margined perpetual futures will be automatically recorded.
2.Generate coverage:
When your accumulated loss reaches 100 USDT, the system will automatically generate one coverage for you.
3.Tierd Premium Rate:
Total Coverages include ：Queued, Active. Frozen, Invalid and Completed status.
A. In case of loss: When the insurance policy is generated, the system will calculate the premium based on your current tiered insurance rate (10% - 30%).
Formula:Loss Amount (100 USDT) × Insurance Rate = Premium
B. In case of profit: The premium will be deducted from your "Futures Account". You can check the deduction details in the Futures section - Fund Flow.
Formula:Profit Amount × Insurance Rate = Premium
For example:
- Currently there are 110 insurance nodes (covering - if futures lose 100 USDT, the system will automatically generate one coverage for you. At this time, 11 USDT (100 USDT * 11%) will be deducted from your insurance account as premium.
- If futures earn 200 USDT, then 22 USDT (200 USDT * 11%) will be deducted from your futures account as premium.
*Important: You must ensure sufficient balance in your insurance account and complete the premium payment within 8 hours after coverage generation, otherwise the coverage will become invalid.
Third Step: coverage Status Management
You can view your coverage status at any time on the "Futures Insurance" management page.
Status | Description | Participates in Payout |
Queued | Premium payment successful, entering a 72-hour waiting period. | No |
Active | After the waiting period, officially begins to participate in each payout distribution. | Yes |
Frozen | coverage temporarily suspended from payouts due to insufficient premium contributions from recent transactions. | No |
Invalid | coverage permanently invalid if not unfrozen within 10 days, premium not paid on time, or risk control triggered. | No (Permanent) |
Completed | coverage ends when cumulative payouts reach 100 USDT or the 100-period limit is reached. | No (Ended) |
Fourth Step: Receiving Payouts
Insurance Fund Pool
1. Insurance Fund Pool Description The Contract Insurance Fund Pool is a dedicated reserve fund established by the XT platform for its contract insurance service. Its primary objective is to provide payout capabilities for eligible active insurance policies. The size and health of the fund pool directly affect the platform’s ability and efficiency in fulfilling policy claims. The sources of the fund pool mainly include:
- Handling fees injected by the platform (injection ratio ranges from 0% to 5%)
- Full premiums paid by users
2. Insurance Fund Pool Depreciation Payout (Minimum 24 Hours) When the insurance fund pool reaches 100% depreciation, the funds in the pool will be evenly distributed to users based on the participating insurance policies in the current period.
Claim Payouts
1. Automatic Payout As long as your policy is in Active status, the system will automatically process the payout once the insurance fund pool reaches the trigger threshold. Each policy will receive a payout of 100 USDT (up to a maximum of 100 periods).
2. Payout Crediting The payout amount will be directly credited to your "Claimable Amount" section. The claimable insurance amount can then be transferred to your Insurance Account.
Fifth Step: Freezing and Unfreezing Logic coverage
Freezing Mechanism
Trigger Conditions
At 0:00 (UTC) daily, the system evaluates the futures insurance coverages of all users. If the system determines that your trading premium has failed to meet the minimum maintenance premium requirement, then, with the exception of coverages newly generated within the last 10 days (which remain active), all other coverages will be frozen and ineligible for payout.
coverage Unfreezing Mechanism
1.Unfreezing Conditions
2.Unfreezing Time Limit
Frozen coverage must be unfrozen within 10 days from the date of freezing. This is the only valid window for unfreezing.
3.Unfreezing Formula
Minimum New Virtual coverages = coverages [(Active + Frozen) × Maintenance Coefficient, 1]
Minimum New Maintenance Premium = Minimum New Virtual coverage × Premium Rate × coverage Amount
For example:
User has 8 coverage (5 active + 3 frozen), maintenance coefficient 0.01, rate 10%
Minimum Virtual coverage = (8 × 0.01) = 1
coverageMinimum Maintenance Premium = 1 × 10% × 100 = 10 USDT
If the user generates ≥10U in new premiums or ≥1 new coverage after the last calculation round, all coverage can be maintained.
4.Status After Unfreezing
Successfully unfrozen coverages will revert to “Queued” state, regaining their represented coverage benefits and becoming eligible to participate in subsequent payouts.
coverage Permanent Expiration
If a frozen coverage is not successfully unfrozen within the 10-day unfreezing time limit, it will automatically transition to a permanent expiration state and will never be eligible for payout.
5.View Records:
You can view the details of each payout period in "My Coverage - Completed."
Full Frequently Asked Questions (Q&A)
1. Product Basics and Coverage Scope•
- Q: What is Futures Insurance?
- A: Futures Insurance is a risk protection service designed by XT for USDT-margined perpetual futures traders. After users actively enable the insurance function, trading losses will automatically accumulate to generate coverage. The platform injects a portion of transaction fees and all collected premiums into the insurance fund pool, which is then periodically used to compensate users holding active coverage.
- Q: What is the coverage scope of Futures Insurance?
- A: Futures Insurance primarily covers manual trading in USDT-margined perpetual futures on the main account. Coin-margined futures, sub-account trading, smart copy trading, grid/Martingale strategy trading, position takeover, hedging positions, and portions offset by activity vouchers are all not covered.
- Q: What is the amount of coverage?
- A: Each coverage has a fixed amount of 100 USDT.
- Q: How is the premium rate calculated?
- A: The premium rate is charged on a tiered, increasing basis, ranging from 10% ~ 30%, depending on your accumulated amount of coverage.
2. Coverage Generation and Payment
- Q: Why did I incur a loss but no coverage was generated?
- A:Possible reasons include: the insurance switch is not turned on, cumulative losses are less than 100 USDT, the trading pair is configured as a non-covered contract, dual-direction positions exist for the same trading pair, the user is a sub-account, the user's insurance permission is disabled by risk control, position takeover, or the loss does not constitute an actual loss after being deducted by trial funds or activity vouchers.
- Q: How long is the validity period for coverage payment?
- A: After coverage is generated, you have 8 hours to complete the premium payment. Failure to pay within this period will result in the coverage being voided.
- Q: Why is a premium deducted when I make a profit?
- A: Futures Insurance primarily covers manual trades on the Main Account for USDT-M Perpetual Futures. Coin-M Futures, sub-account trades, Copy Trading, Grid/Martingale strategy trading, Position Takeover, dual-direction positions, trial funds, and portions deducted by activity vouchers are not covered.
3. Payout and Status Management
- Q: What is the waiting period for payout?
- A: The waiting period is the time after coverage is generated and premium payment is successful, lasting 72 hours. During this period, the coverage is not eligible for payout.
- Q: What should I do if my coverage is frozen?
- A: freezing coverage usually occurs due to insufficient new premiums recently. You can apply for automatic unfreezing by continuing to engage in futures trading to generate new premiums. If it's a risk control freeze, you need to contact the risk control team for manual processing.
- Q: When will my coverage be fully paid out?
- A: This depends on the accumulation speed of the fund pool and the number of active coverage. The maximum is 100 periods, with each period at least 24 hours apart. The coverage amount of 100U is fully paid out or reaches 100 periods to complete.
- Q: What happens to my coverage if I close the insurance?
- A: After closing the insurance, existing coverages remain unchanged and continue to participate in payouts, but no new losses will be accumulated, no new coverages will be generated, and no further premiums will be charged.
- Please Note: If you cancel or deactivate your insurance and fail to meet the minimum maintenance premium requirements, your existing coverage may still be frozen. Once coverage is frozen, you must unfreeze it within 10 days by restoring transaction activity (generating new premiums). If the coverage is not unfrozen within 10 days, it will become permanently void and cannot be reinstated.
Risk Warning
Digital asset futures trading carries high risks. Futures Insurance aims to provide you with risk compensation, but it cannot guarantee the complete elimination of trading losses. Please participate in trading rationally based on your own risk tolerance.