Traders start losing control of open positions as BitMEX begins its staged shutdown

As the BitMEX closure approaches, the derivatives exchange will enter reduce-only mode at 04:00 UTC on Aug. 26. Traders will lose the ability to place new positions, while the exchange may close existing positions during its wind-down.

The BitMEX closure follows a strategic review by the board of HDR Global Trading Limited, BitMEX's owner and operator, which decided to close the exchange. BitMEX said financial distress, a hack and immediate regulatory pressure were not the causes of the decision.

Under the closure timetable and operational FAQ, traders will still be able to reduce existing exposure after the Aug. 26 cutoff. From then until the final closure on Sept. 23, BitMEX says it may force-close positions to support an orderly wind-down. The exchange accepts no responsibility for trading losses caused by users being unable to close positions during that period.

During the BitMEX closure, positions may remain open after Aug. 26, but traders will lose the ability to add exposure and face the possibility that BitMEX intervenes before the mandatory close. The deadline therefore marks the point when users begin surrendering control over execution timing rather than the moment every position closes.

What happens during the BitMEX closure

At 04:00 UTC on Sept. 23, BitMEX will immediately force-close every remaining position and end exchange trading. BitMEX says it will use the relevant settlement price or contract index. The resulting funds will go to each user's wallet balance.

After the BitMEX closure, users will retain limited account access after trading stops. They will be able to view wallet balances and transaction history and use withdrawal pages, while the trading interface and other discontinued exchange services will be unavailable.

BitMEX will charge fully verified balances left after Sept. 23 a monthly account fee of 1% per year or $50, whichever is greater. The charge will apply until users withdraw the balance and may increase over time.

BitMEX will deduct the fee only from the remaining account balance. It cannot push the balance below zero or leave the user owing additional money. If the balance is below the minimum withdrawal amount, the fee can reduce it to zero.

A second operational change arrives at 04:00 UTC on Sept. 28. BitMEX will disable API withdrawals, including institutional integrations, so users must withdraw manually through the BitMEX website. The change ends API withdrawal support for integrations including Fireblocks and Copper. Afterward, BitMEX will support USDT, USDC and ETH for withdrawals only on Ethereum.