Author: CryptoSlate

Translator: Deep Tide TechFlow

Deep Tide Introduction: BitMEX announced its shutdown on September 23, but the actual deadline is August 26—after which all trading will switch to a reduction-only mode. For traders still holding contracts, this means you may face the risk of forced liquidation and will not be able to transfer positions to other exchanges. Users who miss the withdrawal window will be charged a custody fee of $50 or 1% of their balance each month.

The Seychelles cryptocurrency exchange BitMEX, founded by Arthur Hayes, announced on July 23 that it will close at 04:00 UTC on September 23. Users now have two months to close positions and withdraw funds, while new user registrations have been halted.

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

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

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Clients who miss the closing time can still log in to check their balance and records and apply for withdrawals. However, KYC-verified accounts holding assets will face a monthly fee, either $50 or the higher of 1% of the balance per year.

BitMEX also warned that additional reviews and blockchain restrictions could delay withdrawals and stated there will be no preferential service for transferring funds.

Where BitMEX funds might go

Currently, there is no public data tracking the whereabouts of BitMEX customers, so one can only infer possible destinations based on existing market size, depth, and product offerings. A CoinGecko snapshot on the same day shows that BitMEX had a 24-hour trading volume of about $120.84 million and open contracts totaling $705.33 million. The same source shows that Binance Futures had a 24-hour trading volume of $45.68 billion and open contracts valued at $25.1 billion.

No public leads indicate where BitMEX customers are heading. Market scale, liquidity, and product choices provide the best clues. A CoinGecko snapshot on the same day shows that BitMEX had a 24-hour trading volume of $120.84 million and open contracts totaling $705.33 million, while Binance Futures had volumes of $45.68 billion and $25.1 billion, respectively.

This gap makes Binance the most apparent destination by scale. TokenInsight's 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 terms of derivatives trading volume, average open contracts, and BTC futures depth, with OKX, Bybit, Gate, and Bitget making up the remaining top five centralized competitors. Qualification, collateral, and matching contracts will influence each trader's choices.

For eligible users, Hyperliquid is also a reasonable on-chain option. CryptoSlate reported in June that the platform had a 30-day perpetual contract trading volume of $240.5 billion and open contracts amounting to $8.6 billion. Existing data indicates that funds will be dispersed into pools that are already quite deep, rather than finding a new haven.

This will slightly increase concentration, but BitMEX's 24-hour trading volume is only about 0.26% of Binance's, and even though the deadline is absolute for clients, possible overall market volume transfer is still quite limited.