After increased market volatility, why are more and more advanced traders starting to focus on asset protection mechanisms?

Over the past few years, the crypto market has experienced multiple cycles of bull and bear markets. From Bitcoin reaching new highs to hot sectors like AI, RWA, and Real Stock surging one after another, and then to sharp fluctuations caused by macroeconomic changes, market opportunities are constantly emerging, but risks are also simultaneously increasing.

For ordinary investors, a single wrong trade might just be a short-term setback; but for high-frequency traders and high-net-worth users, the real challenge is not just how to avoid risks, but how to maintain the ability to continue trading and re-strategize after risks occur.

Especially in high leverage markets such as derivatives and TradFi CFDs, position liquidations and short-term losses are often unavoidable. More and more traders are realizing that a mature trading system requires not only trading strategies but also a comprehensive risk protection mechanism.

Against this backdrop, Gate has launched the fourth phase of the VIP Asset Protection Plan, providing dual safeguards through position liquidation subsidies and trading loss subsidies, establishing a more complete asset protection system for VIP users, and transforming risk management from passive stop-loss to active protection.

What Upgrades Are in the Fourth Phase of Gate VIP Asset Protection Plan

The current event runs from June 10, 2026, 16:00 to June 30, 2026, 23:59 (UTC+8).

Compared to previous activities, the biggest change is that risk protection has been expanded into two dimensions: trading loss subsidies and position liquidation subsidies.

The platform has prepared a multi-million dollar guarantee fund covering two core trading scenarios: derivatives and TradFi CFDs. Eligible VIP users, even if they incur losses or face position liquidations during periods of extreme market volatility, have the chance to receive corresponding subsidies, thereby reducing the pressure from capital drawdowns. This event is mainly open to VIP 5 and above users. To qualify at the end of the event, users must maintain their natural VIP level, and their most recent VIP upgrade must be achieved through normal means such as assets or trading volume; levels obtained via experience cards or manual adjustments are not counted within the scope of this activity.

For long-term active traders, this means risk protection has become an essential part of the VIP benefits system, no longer just a simple discount on trading fees.

How the Dual Subsidy Mechanism Helps VIP Reduce Trading Pressure

The core part of this event is the trading loss subsidy mechanism.

During the event, as long as users conduct derivative or TradFi CFD trades and incur certain losses, they may be eligible for subsidies. The mechanism operates on a “dynamic threshold, first-come, first-served” basis, where users who reach the specified loss threshold can lock in subsidy eligibility.

The total subsidy pool for derivative trading is 20,000 USDT.

When cumulative losses reach:

• 20,001 - 40,000 USDT, receive 50 USDT;
• 40,001 - 60,000 USDT, receive 100 USDT;
• 60,001 - 100,000 USDT, receive 150 USDT;
• 100,001 - 150,000 USDT, receive 200 USDT;
• 150,001 - 200,000 USDT, receive 400 USDT;
• Over 200,001 USDT, the maximum subsidy is 1,000 USDT.

Meanwhile, TradFi CFD trading also has an independent subsidy pool totaling 10,000 USDT.

After meeting the corresponding loss amount and minimum trading volume requirements, users can receive up to 800 USDT in subsidies.

It’s important to note that this subsidy mechanism is not designed to encourage high-risk trading, but rather to provide a certain level of capital buffer for high-level traders during extreme market conditions. For long-term traders, the ability to recover after risks occur is often more important than the profit or loss of a single trade.

Why Position Liquidation Subsidies Are Worth Paying Attention To

Compared to loss subsidies, position liquidation subsidies are more innovative. In highly volatile markets, many traders have experienced forced liquidations caused by extreme price movements. Whether triggered by macro news or liquidity shocks from sudden events, these situations can challenge even well-managed positions.

The newly added position liquidation subsidy in this event is specifically designed for this scenario. During the activity, VIP 5+ users who successfully register and experience a single position liquidation exceeding 2,000 USDT in derivative trading will automatically trigger a special surprise task.

By completing the designated task, users have the chance to receive additional trial trading rewards. The significance of this design is that when traders encounter unexpected market events, they don’t need to reinvest large amounts of capital to re-enter the market, but still have opportunities to participate again. Compared to traditional trading rewards, position liquidation subsidies act more like a risk recovery mechanism.

For long-term active traders, this mechanism helps them adjust their trading pace more quickly and reduces the impact of unexpected events on their overall trading plans.

Why More and More Advanced Traders Are Paying Attention to the VIP Risk Protection System

In the past, discussions about VIP mainly focused on fee discounts, dedicated customer service, or activity benefits. But as the market matures, the VIP benefits system is also evolving.

An increasing number of high-net-worth users are paying attention to:

• Whether there are protection mechanisms when capital experiences drawdowns;
• Whether there are opportunities to recover trading after extreme market conditions;
• Whether they can obtain unified risk protection when switching between different markets.

From this perspective, the fourth phase of Gate’s VIP Asset Protection Plan is not just a short-term activity but also reflects an upgrade of the VIP service system toward “trading + risk control + asset protection.”

Whether it’s derivative loss subsidies, TradFi CFD risk coverage, or post-liquidation recovery mechanisms, the core goal is to help users maintain continuous trading ability amid market volatility, rather than being forced out after a single failure.

For professional traders, the real importance is not never making mistakes, but having the capital to start over again after errors.

FAQs

• 1. Which users can participate in the fourth phase of the VIP Asset Protection Plan? Mainly open to VIP 5 and above users, but VIP 14+, market makers, corporate users, institutional users, and accounts with over 60% API trading volume in the past 30 days are not eligible.
• 2. How will the loss subsidies be distributed? After the event, eligible users will receive derivative trial trading rewards, which are expected to be distributed within 15 working days after the event ends and can be viewed in the coupon center.
• 3. How is the position liquidation subsidy triggered? During the event, if a VIP 5+ user experiences a single position liquidation exceeding 2,000 USDT in derivative trading, the system will automatically trigger a special task, and completing it will earn the corresponding reward.
• 4. Can users receive both loss subsidies and position liquidation subsidies simultaneously? Yes. Both benefits are calculated independently, and as long as the conditions are met, users can receive both trading loss subsidies and position liquidation subsidies.
• 5. Why is risk protection becoming an important part of the VIP system? As market volatility increases, high-level traders are increasingly concerned about capital safety and risk recovery. A risk protection system not only reduces the impact of extreme market conditions but also helps traders maintain a stable long-term trading rhythm, which is becoming a key direction for the new generation of VIP services.