BitMEX shutdown gives users a two-month withdrawal period, but positions must be closed earlier

Author: CryptoSlate

Compiled by: TechFlow

TechFlow Editor's Note: BitMEX announced it will shut down on September 23, but the actual deadline is August 26—when all trading will switch to reduce-only mode. For traders still holding contracts, this means you may face the risk of forced liquidation and cannot transfer positions to other exchanges. Users who miss the withdrawal window will be charged a custody fee of $50 or 1% of the balance per month.

Seychelles-based cryptocurrency exchange BitMEX, founded by Arthur Hayes, announced on July 23 that it will close on September 23 at 04:00 UTC. Users now have two months to close positions and withdraw funds; new user registration has ceased.

However, the actual trading deadline comes earlier. According to BitMEX's liquidation schedule, risk limits will take effect on August 26 at 04:00 UTC, after which users can only reduce positions.

BitMEX may forcibly liquidate contracts during the liquidation process and will immediately liquidate all remaining positions at the September 23 deadline. The announcement did not mention any position transfer mechanism, so any positions opened elsewhere will be separate trades.

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Customers who miss the closure deadline can still log in to view balances and records and apply for withdrawals. However, KYC-verified accounts retaining assets will be subject to a monthly fee, whichever is higher: $50 equivalent or 1% of the balance per annum.

BitMEX also warned that additional reviews and blockchain restrictions may delay withdrawals, and stated there is no service for priority fund transfers.

Where BitMEX Funds Might Flow

There is currently no public data tracking the destination of BitMEX customers; possible destinations can only be inferred from existing market size, depth, and product offerings. A CoinGecko snapshot from the same day shows BitMEX's 24-hour trading volume at approximately $120.84 million, with open interest at $705.33 million. The same data source shows Binance Futures 24-hour trading volume at $45.68 billion, with open interest at $25.1 billion.

There are no public clues indicating where BitMEX customers are going. Market size, liquidity, and product selection provide the best clues. A CoinGecko snapshot from the same day shows BitMEX's 24-hour trading volume at $120.84 million and open interest at $705.33 million, while Binance Futures were $45.68 billion and $25.1 billion respectively.

This gap makes Binance the most obvious destination in terms of scale. A TokenInsight second-quarter report shows that Binance, OKX, Bybit, and MEXC collectively account for 72.46% of the derivatives market they cover.

CoinGlass also ranks Binance first in derivatives trading volume, average open interest, and BTC futures depth, with OKX, Bybit, Gate, and Bitget making up the rest of the top five centralized competitors. Eligibility, collateral, and matching contracts will influence each trader's choice.

For eligible users, Hyperliquid is also a reasonable on-chain option. CryptoSlate reported in June that the platform's 30-day perpetual contract trading volume was $240.5 billion, with open interest at $8.6 billion. Existing data suggests funds will disperse into already deep pools rather than a new destination.

This will slightly increase concentration, but BitMEX's 24-hour trading volume is only about 0.26% of Binance's; even if the deadline is absolute for customers, the potential overall market volume transfer is very limited.