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Perpetual contracts offer indefinite market exposure, but that comes with continuous risk. A sharp move against your position can trigger a margin call or liquidation before you have time to react. Contract insurance, available on Bybit through the Perp Protect feature, provides a structured safety net that stays active regardless of what happens to your Perpetual position.
Key Takeaways:
Contract insurance can be activated directly from Bybit’s trading interface without leaving your position view.
Coverage details and estimated cost are displayed before transaction confirmation.
Protection is tied to your position at the time of purchase, and does not adjust automatically if your position size changes.
Contract insurance on Bybit is realized through Perp Protect, an automated risk management tool that hedges both long and short Perpetual positions by acquiring options contracts based on an intelligent algorithm.