Pre-soak the beans by covering them with water by a few inches and let them sit overnight. Due to the high pressurization of the instant pot it is possible to cook beans without soaking, however it is still strongly encouraged to pre-soak to aid digestion. Rinse and drain the beans from the soaking water.
Set the Instant Pot to the “saute” option and add coconut oil, diced red onion, garlic, chili and cumin powder. Sauté the red onion until it begins to sweat and soften. Add a cup of water and scrape down the bottom and sides of the pot.
Add the beans, bay leaves and remaining 3 cups of water. For a more liquid base to the beans, you may add up to 6 cups of water per pound of beans. One pound of beans to 4 cups of water will minimize the need for draining.
Place the lid on the Instant Pot, set to high pressure for 20 minutes and close the venting valve. It will take a few minutes to pressurize and then it will begin counting down from 20 minutes. Once the cooking time is complete, allow the pressure cooker to naturally release pressure for 20 additional minutes. After 20 minutes of natural release, very carefully push the venting valve to open and manually release all remaining steam.