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MEXC Risk Control FAQ

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MEXC
  1. Introduction
This document outlines MEXC's risk control practices, including account review procedures, compliance rationale, and user rights. It serves as a reference for affected users and regulatory bodies. This policy is subject to updates in alignment with international regulatory developments.

  1. Purpose of Risk Control
To ensure a secure and compliant trading environment, MEXC maintains a dynamic risk control framework consistent with global regulatory standards. This framework requires the platform to temporarily restrict or review accounts exhibiting suspicious activity, unusual trading behavior, or compliance-triggering patterns.

  1. Triggers for Risk Control Reviews
MEXC may initiate a risk control review in the following (non-exhaustive) scenarios:
3.1. Futures trading anomalies: Accounts flagged for pending advanced KYC, suspected bot activity, market manipulation, wash trading, spoofing, front running or activity linked to specific high-risk regional IP addresses.
3.2. Spot trading irregularities: Accounts with pending KYC, suspected pump-and-dump behavior, or permanently banned from spot trading.
3.3. Compliance/legal risk: Accounts linked to criminal activity, sanctioned entities, stolen funds, illicit content, drug trafficking, money laundering, or assets obtained through illicit means, including market manipulation, rug pulls, pump-and-dump schemes, ransomware, terrorism financing, or subject to court orders.
3.4. Listing-related risks: Accounts linked to project teams with undeclared affiliations, suspicious token deposits, or market behavior around listings that suggests manipulation.
For more details, refer to our Abnormal Trading Behavior Policy.

  1. Legal and Regulatory Basis
MEXC’s risk control procedures are designed in compliance with globally recognized regulatory standards, including but not limited to:
  • Financial Action Task Force (FATF) Recommendations on Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT)
  • EU AMLD5/6 Directives, establishing stringent due diligence, transaction monitoring, and user verification obligations
  • Office of Foreign Assets Control (OFAC) Sanctions and Watchlists
  • United Nations Security Council Sanctions Lists
  1. Examples of Abnormal Trading Behavior
Examples include but not limited to:
  • Coordinated pump-and-dump actions
  • Exploiting latency through HFT bots
  • Cross-exchange wash trading
  • Artificial volume creation using affiliated wallets
  1. Withdrawal Restrictions
Your account may experience temporary withdrawal limitations due to:
  • 24-hour lock following a security reset (e.g., password, 2FA).
  • Activation of automated risk control mechanisms.
  • Enabling the withdrawal whitelist (24-hour lock on newly added addresses).
  • Disabling the whitelist feature (also results in a 24-hour lock).
  1. Review and Resolution Procedure
  • Initial Review: Mistakenly flagged accounts are quickly restored.
  • Confirmed Violation: If abuse is identified, the team determines if it was individual or coordinated. Group-based abuse may trigger longer restrictions.
  • Data Analysis: A deep review determines rollback timing, freezing periods, or penalties (may be up to 365 days in severe cases).
  • User Appeals: Users who believe their accounts were mistakenly flagged can contact MEXC’s Customer Service team for verification and manual review. (Please check the User Support and Appeals section below.)
  1. 30-Day Observation Periods
When our system detects abnormal trading behavior, the affected accounts are placed under a 30-day observation period. This timeframe has been established based on our operational experience and allows us to conduct a thorough assessment of user trading patterns.
Our monitoring activities include:
  • Tracking whether users attempt to trade through new accounts or previously signed-up accounts during the observation period, particularly those with matching IP addresses or similar trading patterns.
  • Identifying coordinated trading behavior across multiple associated accounts that could influence market prices, whether occurring historically or during the current observation period.
Previously, observation periods ranged from 7 to 14 days. However, in response to increasingly sophisticated and covert violations, we have extended this period to 30 days. This adjustment aims to reduce false positives and enhance our capacity to identify genuine risks.

  1. 365-Day Restriction (Applies Only to Coordinated Violations)
This mechanism applies exclusively to accounts involved in coordinated violations and does not affect all users subject to risk control measures.
The purpose of this restriction is to increase the operational costs for coordinated violators. It deters them from circumventing restrictions by creating new accounts or reactivating existing accounts to employ the same manipulation strategies.
We have identified a recurring pattern where violating entities, upon account reinstatement, immediately withdraw their assets and resume manipulation activities using the same strategies. The 365-day restriction is implemented to prevent repeated violations and protect our platform and users.

  1. Rollbacks
To maintain a fair market environment and protect the interests of all users, MEXC is obligated to take appropriate measures against any activity that violates our trading rules. Following a comprehensive analysis by our risk control system and professional team, in accordance with our risk control policy, profits/losses recorded through abnormal trading will be subject to rollback.
A rollback will only be carried out if the user clearly violates the platform rules and affects the trading experience of normal users. We will determine the rollback time based on transaction data and records. This is a strict process. Legitimate users who are inadvertently impacted can appeal with supporting information.

  1. Multi-Account Manipulation: A Case Study
Suspicious Activity from Associated Accounts
Multiple accounts showed clear signs of coordination and engaged in trading behaviors that violate platform rules. These accounts were flagged for suspected manipulation based on the following evidence:
  • Accounts operated from identical IP addresses
  • Orders were placed with synchronized timing
On May 30, 2025, at 3:06:18 (UTC), multiple associated accounts simultaneously opened positions in FLOCKUSDT at identical entry prices, attempting to circumvent the platform's position risk limits. The combined trading volume from these accounts represented approximately 50% of the total trading volume during that period, constituting suspected market manipulation.
On May 31, 2025, these associated accounts were restricted and placed under a 30-day observation period.
Position Risk Limit is a risk management measure implemented in Futures trading to restrict the maximum position size that individual users or accounts may maintain. Our platform establishes maximum position limits for each Futures pair to prevent excessive risk concentration among limited market participants and mitigate market manipulation.

  1. Resolving an Account Review
If your account is under risk control. please:
  • Web: At the bottom of the homepage, select Help Center → Account Risk Review, and complete the form as guided by the instructions provided on the page.
  • App: Go to Home → More → Services → Help Center → Account Risk Review. Follow the on-screen instructions to complete the required form.
  • After an account is restricted due to risk control, completing advanced KYC and providing additional documentation are key requirements for lifting the restriction.
  1. How MEXC Protects Ordinary Users
MEXC’s system is specifically designed to detect malicious behavior, not to affect regular users. With advanced algorithms and behavioural analysis, and a false-positive rate of <0.1%, most restrictions are precise and targeted. Any legitimate user mistakenly flagged is encouraged to contact support for fast resolution. We have a dedicated group to handle such cases and will promptly resolve any issues.

  1. User Support and Appeals
11.1 Users may appeal reviews by contacting our online service team via email service@mexc.com, or submitting a request directly by following the guide: Self-Service Guide For Risk Control Removal Information Submission
11.2 Any flagged user has access to an internal review procedure.
11.3 MEXC ensures fair handling of all reviews with priority support for time-sensitive cases.

  1. Monitoring and Updates
This document is regularly reviewed and updated to reflect regulatory changes and platform policy enhancements
For updates and safety alerts, please use MEXC’s official website https://www.mexc.com/
MEXC reserves the right to take action deemed necessary to preserve platform integrity, meet regulatory demands, and protect users from systemic abuse or financial crime risks.


Last Updated: May 2025
This document may be updated in accordance with evolving regulatory standards or internal policy revisions.