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In response to extreme market volatility, such as the recent $19 billion liquidation event, crypto exchange CoinW is highlighting its enhanced risk framework, designed to provide users with tools to manage the risks associated with derivatives trading.
The crypto derivatives market is an environment of intensifying risk. Alongside its significant growth, the space is increasingly defined by extreme market events driven by heightened global macroeconomic uncertainties. According to a CoinGlass report, the CoinGlass Derivatives Risk Index remained at elevated levels throughout the first half of 2025.
The volatility poses a continuous threat to asset security, exemplified by the Oct. 11 liquidation cascade — a marketwide disruption that saw over $19 billion in leveraged positions liquidated across exchanges, impacting approximately 1.6 million traders.
Mindful of these challenges, CoinW reaffirms its commitment to user protection through a multi-layered risk management framework integrating real-time monitoring, automated protection and subsidy support.
Unshaken. Unmoved. Unstoppable. ⚡️ pic.twitter.com/fWQWuR6lML
— CoinW (@CoinWOfficial) November 2, 2025
A risk-sharing philosophy
The centerpiece of CoinW's risk management framework is the Futures Protection Program (FPP), a user-centric mechanism grounded in shared risk principles.
The program is designed to offer a tangible risk buffer by supporting users with periodic rewards and incentives that users may choose to apply toward trading-related costs. Users accumulate a personal protection quota through activities like trading, daily check-ins and referrals, allowing them to claim up to 500 Tether (USDT) per round to offset losses, fees or funding rates.
“The systemic and unpredictable risks have long deterred users from engaging in derivatives trading and we fully understand their anxieties,” said Vega Liu, growth lead at CoinW’s futures business. “That’s why we introduced this protective fund — to alleviate such concerns and empower them to explore the market more confidently.”
Launched in May 2025, the funding program has evolved through six editions, incorporating ongoing refinements to better serve traders.
Building on extensive feedback from the first two phases, the third phase delivered an upgrade that linked daily trading more tightly to the fund — ensuring an experience where every transaction is backed by a reliable subsidy. Under the revamped system, lower-tier amounts are accumulated faster, enabling a broader range of participants to tap into the benefits.
In response to the Oct. 11 mass liquidation incident, CoinW ramped up the program in the sixth edition, boosting subsidy levels and launching a time-limited goodwill initiative for eligible users, offered voluntarily.
To date, CoinW has invested over 3 million USDT in the initiative, with more than 90,000 users participating in the program and a fresh edition set to debut this month.
“With this program, we bring to the industry a new paradigm in futures trading,” Liu said.
A full-cycle security framework
For cryptocurrency exchanges, the Oct. 11 flash crash—when mass liquidations wiped out billions in a matter of minutes—has prompted a renewed focus on robust defenses. For this part, CoinW has emerged as a frontline defender.
“When extreme market conditions strike, the exchange serves as one of the most critical lines of defense,” said Nassar AI Achkar, CoinW’s chief strategy officer. “If that barrier falters and users suffer massive losses, the trust built over years can vanish in an instant.”
Beyond its signature Futures Protection Program, CoinW has built a comprehensive risk management system for derivatives trading, honed over years of live operations. This integrates cutting-edge controls, intelligent liquidation processes and a range of other safeguards to steel users against the futures market’s wild volatility.
From the moment a trade opens, users on CoinW benefit from a suite of proactive tools that grant them autonomy in risk controls. These include dynamic margin requirements, position caps, customizable stop-loss and take-profit orders, as well as real-time alerts that flag margin shortfalls or wild swings.
In dire scenarios, the platform deploys its Auto-Deleveraging (ADL) mechanism, a vital circuit breaker that halts liquidation chains and curbs systemic fallout, preserving stability amid chaos and fostering a balanced trading environment.
Combined with the Futures Protection Program, this framework is designed to provide full-cycle security — from proactive measures to in-process interventions and post-event recovery, crafting a more resilient and reliable ecosystem for contract trading.
Disclaimer: CoinW Futures Protection Fund does not constitute insurance or any form of guaranteed compensation. The program is discretionary, subject to applicable terms and conditions.
Digital asset and derivatives trading involves significant risk, including the potential loss of capital. This article is for informational and educational purposes only. Nothing in this article constitutes financial, investment, trading advice or solicitation. Programs described herein, including incentives or rewards, are voluntary initiatives and do not constitute insurance, guarantees, or compensation for trading losses. Access to products and services is subject to local laws and licensing requirements and may not be available in certain jurisdictions.
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