Crypto Exchange Introduces Risk Management Tools to Combat Market Volatility

In light of significant market fluctuations, such as the recent $19 billion liquidation event, CoinW, a crypto exchange, is emphasizing its advanced risk management framework. This framework aims to empower traders by providing effective tools for navigating the challenges of derivatives trading, particularly during periods of heightened volatility.

Key Takeaways

CoinW has enhanced its risk management framework in response to extreme market volatility.
The Futures Protection Program (FPP) offers users a safety net with rewards to offset trading losses.
A comprehensive risk management system includes advanced tools and mechanisms to help users maintain control over their trades.
CoinW has committed over 3 million USDT to support its users, with wide participation in its initiatives.

Crypto exchange offers risk management tools against market volatility

Understanding the Current Market Risks

In the world of cryptocurrency, market volatility has become a pressing challenge. Amidst a massive liquidation event that saw $19 billion wiped out, CoinW has stepped up by promoting its improved risk management tools, built to help users navigate the unpredictability of the derivatives market.

The volatility is exacerbated by ongoing global economic uncertainties, as evidenced by the CoinGlass Derivatives Risk Index, which reported high levels during the first half of 2025. This volatility not only threatens traders but also affects asset security on exchanges, highlighted by events such as the October 11 liquidation, which impacted around 1.6 million traders.

To address these concerns, CoinW has reaffirmed its dedication to user protection through its multi-faceted risk management structure, which includes real-time monitoring, automated safeguards, and support for users.

CoinW's Approach to Risk Management

At the heart of CoinW's risk management strategy is the Futures Protection Program (FPP). This user-focused initiative is designed around the principles of shared risk, providing a safety net that rewards users and offers incentives to offset trading costs. Users can accumulate a personal protection quota by participating in trading, daily check-ins, and referrals, allowing them to claim up to 500 Tether to mitigate losses or fees.

Vega Liu, CoinW's growth lead for futures, stated, “We recognize that systemic and unpredictable risks have deterred users from derivatives trading, and we've created this protective fund to help alleviate their concerns and encourage participation.”

Since its launch in May 2025, the FPP has undergone various enhancements, reflecting feedback from users. The latest phase has improved the linkage between daily trading activity and the fund, making rewards more achievable and accessible for traders.

Following the events of October 11, CoinW activated an upgraded version of the program, increasing subsidies and rolling out a temporary initiative aimed at supporting eligible users, which was welcomed voluntarily. To date, over 3 million USDT has been allocated to this program, with more than 90,000 users involved and a new edition on the horizon.

Liu remarked, “With our FPP, we are introducing a transformative approach to futures trading in the industry.”

Security, Cryptocurrency Exchange, Futures, Liquidity

Comprehensive Security Strategy

The liquidation event on October 11 revealed vulnerabilities within cryptocurrency exchanges, prompting a fresh focus on robust security measures. CoinW has positioned itself as a leader in this arena.

In addition to the Futures Protection Program, CoinW has developed a holistic risk management system for derivatives trading, refined through years of operational experience. This system includes cutting-edge controls and intelligent liquidation processes to safeguard users against the inherent volatility in futures markets.

From the onset of a trade, CoinW users gain access to a suite of proactive risk management tools. These include dynamic margin requirements, position limits, customizable stop-loss and take-profit orders, as well as real-time alerts for potential margin issues.

In critical situations, CoinW employs its Auto-Deleveraging (ADL) mechanism, which acts as a circuit breaker, preventing liquidation chains and minimizing systemic risks. This measure is essential for maintaining stability during turbulent market conditions.

Together, the combination of CoinW's Futures Protection Program and its comprehensive risk management framework creates a robust security infrastructure. This ensures a supportive trading environment, helping users navigate the complexities of contract trading with more confidence and resilience.