Managing Futures Risks with Futures Contract Insurance on BitNasdaq
2026-02-06 11:18:40
Insured Amount and Compensation Structure
Insurance Eligibility and Purchase Conditions
Profit and Loss Settlement Logic
How Compensation is Distributed
Insurance Statuses You Need to Know
Policy continuity and Payment Termination
Why Futures Trade Insurance Is Important
Frequently Asked Questions (FAQs)
Futures Trading on BitNasdaq allows traders to diversify their market exposure and amplify their gains by utilizing leverage and trading for larger positions. However, the greater the rewards, the greater the risk. Higher levels of leverage and market volatility introduce exposure to risk and loss. Recognizing the need for a risk management system, BitNasdaq, the best cryptocurrency exchange platform, has launched Futures Contract Insurance.
Testing launched officially on 12th January 2026, and for every user, it will be launched on 15th February 2026 to protect its traders from downside risks while actively taking part in futures trade. Futures Contract Insurance offers a clear framework of insurance. Traders can now open positions by paying a fixed insurance premium and become eligible for predefined compensation on their losses.
Continue reading the blog below to learn more about how Futures Trade Insurance works, premiums, compensation, profit deductions, and policy continuity requirements.
What is Futures Trade Insurance
Futures Trade Insurance is a short-term insurance policy that has been designed exclusively for Futures Contract positions on BitNasdaq. The insurance covers a defined period of 24 hours and monitors the overall trade of the trader. The trader is required to pay the insurance premium before opening a position to limit any downside risks of the trade. Though this insurance does not eliminate risk, it offers compensation to the traders if their losses exceed set threshold levels to help them manage risk and participate in futures trades actively.
The Insured Object
The BitNasdaq object insured under this policy is strictly:
Futures Contract Positions ONLY
Only the futures trade positions opened after paying the insurance premium are eligible for the Futures Trade Insurance. Spot trading, Margin Trading, existing positions, or other trading products on BitNasdaq are not covered.
Visit BitNasdaq and explore Futures Trading
The Insurance Premium Model
The Insurance Premium Model works on a straightforward structure based on trading outcomes during the insured period
Loss Insurance: A fixed premium of 1 USDT paid before opening the futures position
Profit Settlement:
If the overall outcome of the trading period is profitable, 10% realized profit will automatically be deducted as an insurance fee.
However, in case of an overall loss of an outcome, no profit deduction will be applied. Profit settlement only applies if the trader closes the insured position in profit. There is no forced liquidation related to insurance settlement.
Insured Amount and Compensation Structure
A trader will only be eligible for compensation if the losses of his futures trades exceed a set threshold. The set amount of premiums and resulting compensations is fixed and transparent.
Pay 1 USDT premium, and receive 5 USDT compensation if total loss exceeds 10 USDT
Pay 10 USDT premium, and receive 50 USDT compensation if total loss exceeds 100 USDT
Loss Threshold Requirement:
If the total loss is less than 10 USDT, no compensation applies under the insurance conditions
If the total loss is equal to or exceeds 10 USDT is eligible for compensation
Total compensation is determined on the basis of overall trading results, not on individual trades.
Insurance Eligibility and Purchase Conditions
To ensure transparency and consistency for all users, BitNasdaq has set strict rules for the Futures Trade Insurance:
Insurance must be purchased before opening any futures position
Insurance cannot be purchased on any existing open futures positions
Insurance takes effect immediately upon purchase
The insurance period lasts 24 hours
The insurance period automatically expires after 24 hours, and a new policy needs to be purchased to open the next position.
Profit and Loss Settlement Logic
After the insurance period ends, i.e., 24 hours, BitNasdaq evaluates overall performance through two parameters:
Floating P&L
Closed Position P&L
All calculations are based on the mark price, which is measured from the time the insurance was purchased till the expiration time.
How Compensation is Distributed
Under Futures Trade Insurance, BitNasdaq will distribute compensation gradually rather than all at once. For example, if the total loss is 10 USDT, a compensation of 5 USDT will be distributed over a period of 30 days. This makes a daily payout of 0.16 USDT per day.
The daily compensation follows the mechanism:
0.16 USDT is automatically used to purchase BNQ
The purchased BNQ is burned
The burned BNQ generates Hashrate
Hashrate is used in daily BNQ Mining
Mined BNQ is credited to the user
This mechanism integrates the compensation into the BitNasdaq ecosystem rather than directly distributing payouts to the users. Indirectly supporting long-term BNQ tokenomics.
Insurance Statuses You Need to Know
The insurance policy can move through several states during its lifecycle, so you must be familiar with:
In Effect: The policy is currently within the active 24-hour coverage period
Compensating: Loss conditions are triggered, and compensation distribution has started
Frozen: Compensation is paused due to continuity rule violations
Completed: Compensation is fully distributed, or the profit settlement is finalized
Policy continuity and Payment Termination
Traders are required to maintain an active insurance status to continue receiving compensation.
Payments will be frozen if:
No new insurance policy is purchased within 5 days
A new insurance policy is purchased with a smaller insured amount than the previous one
Payments will cease if no new policy is purchased, and Insurance will expire.
Why Futures Trade Insurance Is Important
Futures Trade Insurance is a smart and structured framework to manage the risks of Futures Trading on BitNasdaq. Instead of relying on stop-loss or manual risk management, traders can limit downside exposure with a system of predefined insurance rules, while maintaining flexibility in their trading styles.
The fixed premiums, compensation thresholds, transparent rules, and ecosystem-based distribution of compensation offer an improved approach towards ecosystem sustainability and disciplined trading.
Click Here to learn more about Futures Trade Insurance
Frequently Asked Questions (FAQs)
What is Futures Trade Insurance on BitNasdaq?
Futures Trade Insurance is a recently launched feature on BitNasdaq for risk management in Futures Trading.
How does Futures Trade Insurance Work?
By paying an insurance premium before opening an insurance position, you can insure your trades and receive compensation on losses that exceed the threshold.
Which Trades are covered under this feature?
Only Futures Contract Positions opened after the insurance is purchased are covered under the Futures Trade Insurance.
How much does Futures Trade Insurance cost?
A fixed premium of 1 USDT is paid before opening the futures position. If the overall outcome of the trading period is profitable, 10% realized profit will automatically be deducted as an insurance fee.
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