BitMEX is a centralized cryptocurrency exchange (CEX). The Seychelles-based platform offers spot and derivatives markets, margin and leverage trading, as well as the Stake and Earn feature.
The BitMEX cryptocurrency exchange is KYC-compliant, requiring all customers to complete the user verification process. BitMEX spot and derivatives services are restricted to parties from the US, Hong Kong, Canada (Ontario and Quebec), Russia, as well as several other countries.
Like many cryptocurrency exchanges, BitMEX hosts its native token, BMEX. Customers who stake BMEX are eligible for special discounts and reduced BitMEX crypto fees. Overall, there are fewer BitMEX trading pairs and listed assets compared to other crypto exchanges.
BitMEX supports two types of margin trading – initial and maintenance margin. Customers can have up to 100x leverage on perpetual contracts. Additionally, the Auto Deleveraging process can be used in some instances.
The BitMEX spot exchange uses a multi-tier fee structure and the maker-taker model. High-volume traders may be eligible for fee discounts. The tiers are determined by the 30-day average daily BitMEX trade volume. Traders that stake BMEX and maintain a high volume can accumulate discounts.
Unlike some other platforms that use numbered tiers, the tiers on the BitMEX crypto exchange are titled by letters:
- Tier B – average 30-day daily BitMEX volume (ADV) under $100,000;
- Tier I – 30-day ADV above $100,000;
- Tier T – 30-day ADV above $500,000;
- Tier M – 30-day ADV above $1 million;
- Tier E – 30-day ADV above $10 million;
- Tier X – 30-day ADV above $25 million.
At tier B, both the maker and taker BitMEX exchange fees are 0.1%. At Tier I, the maker fee is 0.05%, while the taker fee is 0.09%. The rates are progressively reduced. At tiers E and X, makers are no longer required to pay any fees for the BitMEX crypto price of the transaction.
Perpetual contracts are the most popular service offered by the BitMEX crypto exchange. It’s a spin on the regular futures contract. However, it doesn’t have expiration dates or settlements and follows similar mechanics to margin trading in the spot market.
The derivatives market uses a fixed maker-taker rate. The default taker fee is 0.075%. There are no BitMEX exchange fees for makers in futures trading. Instead, a Maker Rebate of 0.01% applies. Based on the 30-day average BitMEX volume, as well as the staked BMEX amount, traders can receive a discount of up to 66.67%.
There are no fees on Bitcoin (BTC) deposits or withdrawals, regardless of the BitMEX crypto price value in use. A Bitcoin Network Fee pays Bitcoin miners for transaction processing. However, it’s not one of the direct BitMEX crypto fees.
The BitMEX cryptocurrency exchange offers additional services for its customers. BitMEX Earn is a stake-and-earn program that allows users to receive passive rewards for depositing assets. Users can stake Tether (USDT) or Bitcoin (XBT) and select their preferred investment product.
BitMEX also supports direct cryptocurrency purchases. Payments can be made using credit and debit cards, cash deposits, or electronic transfers. The minimum required BitMEX crypto price for the purchase may vary based on the fiat gateway partner requirements.
Developers can gain access to the two APIs offered by the BitMEX cryptocurrency exchange – WebSocket and REST. They can be used to access live market data, account management, and other information.
About the Company
The BitMEX crypto exchange was co-founded in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed. In January 2022, Ivo Sauter was appointed as the new CEO. The company headquarters are registered in Seychelles.
The BitMEX derivatives market was launched in 2016, offering both traditional futures trading and the new perpetual contracts.
2019 saw the BitMEX crypto exchange narrowing its availability. In August, BitMEX began shutting down US-based accounts due to SEC regulations. Weeks later, the company added Hong Kong, Bermuda, and Seychelles to the list of blocked regions.
The BMEX token was introduced in late 2021. In December of the same year, the BitMEX Earn program was first introduced.
In August 2022, the company announced the launch of its foreign exchange perpetual swap contracts, or FX perps. Such contracts can be traded with up to 50x leverage. According to Daniel Egloff, the goal of this launch was to provide a new way for institutional investors to develop crypto pairs for arbitrage.