Toobit Introduces Multi-Million Dollar Shield Fund to Protect Traders Against Platform Incidents

Toobit, an award-winning global crypto exchange, has launched the Toobit Shield Fund, a $50M risk reserve that provides free, automatic protection for traders against losses from unforeseen platform incidents.

The Shield Fund offers comprehensive coverage for traders’ assets across all platform activities, including trading, staking, and holding funds. 

Protection activates automatically from the moment a trader makes their first deposit, with Toobit fully financing the fund as part of its commitment to maintaining a secure trading environment.

“The safety of our traders’ funds is the bedrock of everything we do,” said Mike Williams, Chief Communication Officer at Toobit. “The Shield Fund gives every trader an automatic safety net, so you can trade worry-free.“

To ensure transparency, Toobit has implemented a live, 24/7 public dashboard that displays the fund’s total value in real-time. 

The fund specifically covers losses resulting from internal technical or security failures on the Toobit platform. It does not cover losses from personal account compromises, individual trading decisions, or market volatility.

Growing Industry Security Concerns Call for a Solution

The launch comes at a critical time for the crypto industry, which is facing an escalating security threat.

According to Chainalysis, an estimated $2.17 billion was lost to hacks in the first half of 2025 alone, which shows the urgent need for robust protection measures.

Toobit’s Shield Fund directly addresses this security gap, providing a self-initiated layer of protection and confidence for traders. 

The initiative aligns with growing industry trends, as the broader decentralized insurance market is projected to reach over $135 billion by 2032.

Conclusively, Toobit operates as a crypto derivatives exchange, providing trading infrastructure with deep liquidity and advanced technology for digital asset traders worldwide. The company says it focuses on delivering secure and transparent trading services to its user base.