BitMEX to switch to reduce-only on Aug. 26 as phased shutdown kicks off

BitMEX will move to reduce-only mode at 04:00 UTC on Aug. 26 as it begins a staged winddown ahead of its planned closure. Once the restriction takes effect, users will no longer be able to open new positions. They will still be able to cut existing exposure, while BitMEX says it may close positions as needed to ensure an orderly shutdown. The exchange added that it does not accept responsibility for trading losses stemming from users being unable to close positions during the winddown. The decision to shut down follows a strategic review by the board of HDR Global Trading Limited, BitMEX's owner and operator. BitMEX said the move was not driven by financial distress, a hack, or immediate regulatory pressure. BitMEX emphasized that the Aug. 26 cutoff is not the point when every position is closed. Positions can remain open after that date, but traders will be unable to add exposure and may face forced closures before the final shutdown, meaning users begin giving up control over execution timing. At 04:00 UTC on Sept. 23, BitMEX said it will force-close all remaining positions and end exchange trading. It will use the applicable settlement price or contract index, and resulting funds will be credited to users' wallet balances. After trading stops, users will retain limited account access, including the ability to view wallet balances and transaction history and to use withdrawal pages. The trading interface and discontinued exchange services will not be available. BitMEX also said fully verified accounts with balances left after Sept. 23 will be charged a monthly account fee equal to 1% per year or $50, whichever is greater. The fee will be applied until funds are withdrawn and may increase over time. Deductions will be made only from the remaining balance; balances will not be pushed below zero or create additional amounts owed. If a balance is below the minimum withdrawal amount, the fee can reduce it to zero. A further operational change is scheduled for 04:00 UTC on Sept. 28, when BitMEX will disable API-based withdrawals, including institutional integrations. Users will then need to withdraw manually via the BitMEX website. The change ends API withdrawal support for integrations including Fireblocks and Copper. After that point, BitMEX will support withdrawals of USDT, USDC and ETH only on Ethereum. The post Traders start losing control of open positions as BitMEX begins its staged shutdown appeared first on CryptoSlate.