XT Announcement: Detailed Explanation of the "Futures Insurance" Policy Freeze and Unfreeze Mechanism – Help Center

Dear XTers,

To help you better understand and effectively utilize the XT Futures Insurance service, we are releasing a detailed explanation of the 'Freeze' and 'Unfreeze' mechanisms. These features are designed to maintain a healthy insurance fund pool and encourage active trading, ensuring you receive stable and fair risk protection.

I. Policy Freeze Mechanism

1.1 Trigger Conditions

The system evaluates all users' futures insurance policies daily at 0:00 (UTC). If the system detects that your trading premium contribution fails to meet the "Minimum Maintenance Premium" required by the platform, some or all of your policies will be frozen.

Exemption Rule: Policies newly generated within the last 8 days are protected; they will remain active and are not subject to freezing.
Other Policy Freezes: Except for the protected policies mentioned above, all other policies you hold will be frozen.

1.2 Impact of Frozen Status

Policies in a frozen state will temporarily lose their protection benefits. During this period, even if the insurance fund pool accumulation progress reaches 100%, users cannot claim payouts for frozen policies.

II. Policy Unfreeze Mechanism

2.1 Unfreeze Conditions

Once a policy is frozen, users can trigger an unfreeze by restoring trading activity. Specific actions include:

Generating New Premiums: Users must continue futures trading, resulting in new premium deductions. This includes:
- Profitable Order Premiums: Premiums deducted from the futures account based on the fee rate for profitable orders.
- Loss-making Order Premiums: Premiums deducted from the insurance account when a loss reaches 100 USDT and a new policy is generated.

2.2 Unfreeze Time Limit

Frozen policies must be unfrozen within 8 days of the freeze occurring. Failure to unfreeze within this period will result in the permanent expiration of the policies.

2.3 Unfreeze Formula and Example

The system calculates the minimum new premium contribution required to maintain the validity of all policies using the following formula:

Min. New Policies = $$\text{MAX} [ (\text{Active Policies} + \text{Frozen Policies}) \times \text{Maintenance Coefficient}, 1 ]$$
- Note: The MAX function ensures a minimum of 1 new policy is required. The Maintenance Coefficient is set by the platform based on operational status.
Min. New Maintenance Premium = $$\text{Min. New Policies} \times \text{User's Current Premium Rate} \times \text{Single Policy Amount (100 USDT)$$

Example:

Assume a user has:

Active Policies: 5
Frozen Policies: 3
Total Policies: 8 (5 + 3)
Platform Maintenance Coefficient: 0.03
User's Current Premium Rate: 10%
Single Policy Amount: 100 USDT

Calculation:

Min. New Virtual Policies: $$\text{MAX} [ 8 \times 0.03, 1 ] = \text{MAX} [ 0.24, 1 ] = 1 \text{ policy$$
Min. New Maintenance Premium: $$1 \text{ policy} \times 10\% \times 100 \text{ USDT} = 10 \text{ USDT$$

Conclusion: If this user generates $$\ge 10 \text{ USDT$$ in premiums (via profitable orders) or generates $$\ge $$ new policy within the cycle of 0:00 Yesterday to 0:00 Today (UTC), they can successfully unfreeze and maintain the validity of all policies.

2.4 Status After Unfreezing

Successfully unfrozen policies will return to "Active" status, regain their protection benefits, and participate normally in subsequent payout distributions.

III. Permanent Policy Expiration

3.1 Trigger Conditions

If a frozen policy is not successfully unfrozen within the 8-day window, it will automatically transition to "Permanently Expired" status. Additionally, policies that fail to pay premiums on time or trigger platform risk control rules may also expire directly.

3.2 Impact of Permanent Expiration

Once a policy permanently expires, the protection benefits it represents are completely lost and cannot be recovered. Users will not be able to reactivate or retrieve the policy through any means, nor will they receive any compensation.

IV. Risk Warning

Digital asset futures trading involves extremely high risk. Futures insurance is designed to provide risk compensation but does not guarantee the complete elimination of trading losses. Please ensure you fully understand the relevant risks and participate in trading rationally based on your own risk tolerance.

Thank you for your support!
XT Team
May 12, 2026

Download the XT Exchange App

Create Your XT Exchange Account Now

Join the XT Exchange Community:

Start Trading:

Spot | Margin | Futures | Copy Trading | XT Earn

XT Exchange reserves the right, at its sole discretion, to modify, amend, or cancel this announcement at any time for any reason without prior notice.