BitMEX enters reduce-only wind-down; traders lose control

BitMEX entered reduce-only mode at 04:00 UTC on Aug. 26, stopping users from opening new positions. Traders can still reduce exposure, but the exchange may close existing positions at its discretion during the wind-down period ahead of the scheduled trading end on Sept. 23.

Under the wind-down timetable, any position open at 04:00 UTC on Sept. 23 will be immediately force-closed and settled using the relevant settlement price or contract index. The resulting funds will be moved into each user’s wallet balance and exchange trading will end at that time.

HDR Global Trading Limited, the owner and operator of BitMEX, carried out a strategic review and decided to close the exchange. BitMEX has said the decision was not the result of financial distress, a hack or immediate regulatory pressure.

After trading stops on Sept. 23, account access will be limited. Users will be able to view wallet balances, transaction history and withdrawal pages. The trading interface and other discontinued services will no longer be available.

Operational changes continue after the trading halt. At 04:00 UTC on Sept. 28 BitMEX will disable API withdrawals, which will affect institutional integrations and custodial partners named by the company. Following the API cutoff, users must withdraw funds manually through the BitMEX website. Withdrawals will be supported only in USDT, USDC and ETH on the Ethereum network after that date.

Balances that remain on the platform after Sept. 23 will incur a recurring charge. Fully verified account balances left on the exchange will be assessed a fee equal to 1% per year or $50, whichever is greater. The fee will be applied until funds are withdrawn and the company notes it may increase over time. The charge will be deducted only from existing balances and will not create a negative balance, although balances below the minimum withdrawal amount can be reduced to zero by the fee.

BitMEX has published an operational FAQ that lays out the sequence and timing of the wind-down actions, including the reduce-only start, potential interim closures of positions, the mandatory force-close on Sept. 23 and the API and withdrawal changes that follow.