Bybit Adds New Safeguards to Restrict AI Bot Access to User Funds

The new Bybit AI Sub-Account feature isolates AI trading agents from users’ main portfolios with stricter permission controls.

Bybit Adds New Safeguards to Restrict AI Bot Access to User Funds

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has introduced AI Sub-Accounts, a feature designed to limit how automated trading agents interact with user funds as AI trading expands.

The move comes as exchanges face growing risks from AI systems connected via APIs, where compromised or malfunctioning agents can execute unintended trades, transfers, or liquidations.

AI Tools Pushed Into Isolated Accounts

As AI trading tools become more widely used, concerns are growing over unrestricted API access between exchanges and automated systems. 

If compromised or misconfigured, AI agents can execute unintended trades, move funds, or trigger liquidations without user approval.

Bybit says AI Sub-Accounts are designed to reduce that risk by isolating automated activity from users’ main accounts and limiting system permissions.

“As agentic trading enters the mainstream, the security baseline has to evolve. No agent should have unchecked power over a trader’s full portfolio,” said Victor Wu, Bybit’s Head of AI Agent Architecture, adding that the new setup prevents AI agents from controlling a trader’s entire account or moving assets unpredictably.

How AI Sub-Accounts Work

Bybit’s AI Sub-Accounts give users more control over how trading bots operate, with limits on risk, access, and trading activity.

AI agents run in a separate account that is isolated from a user’s main funds and other sub-accounts. All trades and transactions stay within that account, with no ability to move funds across accounts.

Users can set rules such as position size limits, leverage caps, and withdrawal permissions, while still monitoring all activity in real time.

The system also restricts access to API connections only, meaning AI agents cannot log in directly or manually control accounts. 

The AI Sub-Account feature is now available to all Bybit users. Any AI agent connected to the platform is routed through an AI Sub-Account by default, limiting access to core assets regardless of user experience or technical setup.

AI Trading Security Becomes a Growing Industry Focus 

The launch reflects broader industry efforts to address operational and security risks linked to autonomous trading systems. AI-powered trading bots have gained traction in crypto markets due to their ability to execute strategies continuously and react to market conditions in real time.

However, the increasing use of automated agents has also raised concerns about compromised APIs, faulty code, and excessive account permissions. Exchanges and infrastructure providers have started introducing additional safeguards as AI adoption accelerates across digital asset trading.

Founded in 2018, Bybit says it serves more than 80 million users globally and remains the world’s second-largest cryptocurrency exchange by trading volume.

Why This Matters

As AI agents become default tools for retail and institutional crypto traders, exchanges without security guardrails face escalating risk of large-scale user losses from compromised or autonomous agents. Bybit’s framework reflects a broader shift toward standardizing AI safety infrastructure across centralized trading platforms.

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People Also Ask:

What is a Bybit AI Sub-Account?

It is a dedicated account type on Bybit that isolates AI agent activity — including trades and transactions — from a user’s primary funds and other sub-accounts.

How do AI Sub-Accounts improve security?

They isolate AI trading activity from primary accounts and limit agent permissions through predefined controls.

What controls can traders configure on an AI Sub-Account?

Traders can set asset caps, transfer limits, leverage caps, and disabled withdrawal functions on a per-account basis to limit agent exposure.


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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Alex Costa

Alex Costa is a crypto writer and investor specializing in researching, analyzing and reporting on promising small-cap projects that are gaining traction in the industry. He has been in crypto since 2018, when he began looking for hidden gems in crypto. Today, he is dedicated to finding the next top performing NFTs and tokens.

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