1. What is contract insurance?
CoinBene contract insurance means that you can freely choose to purchase a certain amount of insurance when you open a position when you conduct contract transactions. When your position is liquidated (forced liquidation), you can get compensation based on the purchased insurance.
2. What is the use of contract insurance?
There is no upper limit on profit, and liquidation is guaranteed. You can use insurance as a mechanism to trade with multiple strategies, and contract insurance can also reduce the risk of your trading strategy when you are unclear about the market trend.
3. How to pay?
When the insured position is liquidated, the insurance compensation will be paid. The compensation amount=2* 70% *MIN{the actual liquidation profit and loss, initial margin * liquidation quantity/opening quantity, Initial insurance amount * liquidation quantity/open position}. According to the compensation formula, the liquidation amount and liquidation profit and loss will affect the compensation amount, and the user's manual liquidation will cause the liquidation amount and the opened position to be inconsistent, which will affect the final compensation result.
The contract insurance order will be reviewed within 24 hours after the position is liquidated. After the review is passed, the compensation amount will be issued at 12 o'clock the next day after the liquidation, the distribution will be completed in 20 days. The amount of compensation can be viewed in My Insurance-Completed-Order Details, and the assets to be paid are in the USDT contract account.
4. Insurance status
a) Ongoing insurance order:
i. All current orders are executed
ii. The current order is partially completed, and the remaining uncompleted orders have been canceled.
iii. The current order is partially executed, and the remaining unexecuted portion has not been canceled.
b) Insurance order has been completed
i. The paid status includes: approved orders; successfully paid orders.
ii. The closed status includes: all positions have been closed but no positions have been liquidated; orders that do not meet the claims standard and have not passed the review.
iii. The status under review includes: the position has been liquidated and the order is under review.
5. Contract insurance description
a) Currently, BTCUSDT symbol supports the purchase of insurance under the USDT perpetual contract, and only supports purchase inlimit orders in the split position mode and market order
b) Range of insurance amount: 1USDT-100 USDT, and the insurance amount cannot be greater than the security deposit;
c) Each user can purchase a daily insurance limit of 400 USDT,thecumulative amountofinsurancethatcanbepurchasedbyeachuseris 5000 USDT.
d) Users can use the insurance ratio to quickly purchase insurance. Actual insurance amount = margin * insurance ratio. Among them, the margin is limited to the position margin when the position is opened. The increase or decrease of the margin in the position does not affect the amount of insurance protection
e) The insurance amount is deducted from the USDT contract account.If there is a full position mode under other trading pairs in the USDTcontract and there is a position, the deduction of the insurance amount will affect the liquidation price of the position. Please pay attention to the risk of other transactions on the position under the whole position;
f) When the user currently entrusts a partial transaction/unfinished transaction, after the user manually withdraws the order, the system will refund the user's corresponding insurance amount according to the number of positions withdraw.
g) Only one-way insurance positions are supported under the same trading pair. When purchasing insurance, after holding insurance in one direction or an ongoing entrancement in one direction, you cannot purchase insurance in the opposite direction;
h) At present, elite traders cannot buy insurance. Traders can buy insurance after closing the order.
6. Demonstration of contract insurance operation process
Step1 Open a position to buy insurance, enter the price and quantity, and check the purchase of liquidation insurance to open a position
Step2 Purchase insurance
(1) When the user opens a position, the above interface will pop up, if you don’t need to buy insurance, just click OK
(2) The estimated use amount is the sum of the insurance amount and the cost of opening a position
(3) If you need to purchase insurance when opening a position, enter the insurance amount, click "CoinBene Contract Liquidation Insurance Product Agreement", and click OK.
Remarks: The insurance ratio refers to the ratio of the insurance amount divided by the opening margin, and the maximum cannot exceed 100%. When purchasing insurance, the insurance amount is deducted from the USDT contract account. If other trading pairs in the USDT contract are in full position mode and there are positions, After deducting the insurance amount, it will affect the liquidation price of the position. Please pay attention to the risk of other transactions on the position under the whole position.
Step3 The position is opened successfully, the contract insurance takes effect, and the order is under guarantee
Step4 Insurance compensation.
When the user order is out of order, it will be reviewed within 24 hours. After the review is passed, the compensation amount will be issued at 12 o'clock the next day after the liquidation, the distribution will be completed in 15 days. The amount of compensation can be viewed in My Insurance-Completed-Order Details, and the assets to be paid are in the USDT contract account
