BitMEX has introduced close-only risk limits as it prepares for its September wind-down. Read the full analysis for more details.
Frequently Asked Questions
Here is a list of FAQs regarding BitMEX introducing closeonly risk limits as it prepares to wind down operations
General Background
Q What does closeonly mean
A It means you cannot open new positions or increase your existing positions You can only reduce or close the positions you currently have open
Q Wait is BitMEX shutting down completely
A Yes BitMEX has announced it will officially cease operations in September The closeonly mode is the final phase of this process designed to help users safely exit their positions before the platform goes offline
Q I just heard about this Can I still deposit money to trade
A No During the closeonly phase depositing funds and opening new trades are disabled The platform is strictly for closing existing positions and withdrawing remaining funds
Q Why is BitMEX doing this
A The company is winding down its operations The closeonly restriction is a standard riskmanagement procedure to ensure the platform can settle all outstanding contracts and return funds to users in an orderly manner before the shutdown date
Risk Limits Trading
Q What exactly are risk limits in this context
A Normally risk limits cap the size of a position you can hold based on your margin Here BitMEX is applying special stricter risk limits to force larger traders to reduce their exposure faster ensuring the market isnt destabilized as everyone rushes to close their trades
Q I have a large open position Will I be forced to close it immediately
A Not necessarily immediately but you will be restricted If your position size exceeds the new lower closeonly risk limit you will not be able to add to it and you may be required to reduce your position size before you can make any further changes The goal is to shrink your position below the limit
Q What happens if my position is above the new limit and I try to close it
A You can close it However if you try to reduce it but its still above the limit the system may prevent you from doing anything until you reduce it to below the limit Its best to reduce your position in stages to stay under the limit