Background
MEXC has established itself as a leading digital asset exchange through strategic differentiation: an extensive selection of trading pairs including early access to emerging assets, deep liquidity across markets, and competitive fee structures. These platform characteristics have driven significant growth in our user base, particularly among retail traders and investors entering digital asset markets.
The same attributes that make MEXC an attractive venue for retail participation also create specific market structure considerations. Concentrated liquidity in exclusive trading pairs, combined with promotional fee programs, requires careful management to ensure that platform benefits are distributed equitably across our user community rather than captured disproportionately through automated trading strategies.
This policy framework addresses these considerations by establishing risk control measures for automated trading on Futures markets. Restricted activities under this policy include unauthorized use of trading bots, high-frequency trading (HFT) systems, API-based algorithmic trading, and arbitrage bots. These measures ensure that MEXC's liquidity and fee advantages continue to serve their intended purpose: providing retail traders with competitive access to digital asset markets.
Why Is Automated Trading Restricted?
MEXC provides API access for Spot trading, while Futures API access requires additional authorization. To ensure compliance and responsible use, users must complete KYB (Know Your Business) verification and undergo a comprehensive review process. Futures API access is granted once usage rules are clearly defined and regulatory requirements are met.
Handling of Unauthorized Automated Trading:
- Upon detection of unauthorized automated trading activity, accounts will be immediately frozen pending investigation.
- Accounts with first-time violations, where no market manipulation or predatory arbitrage is involved, may be reinstated once users acknowledge and agree to the Risk Control Guidelines.
- Repeat violations will face strict disciplinary action.
Policy Rationale
This policy serves three core objectives:
- Preserving Equitable Access to Platform Benefits: MEXC regularly offers promotional programs, including 0-fee trading, designed to benefit our broader user community. Unrestricted automated trading can disproportionately capture the value of these promotions, reducing their effectiveness for retail participants. Authorization requirements ensure that promotional initiatives achieve their intended distribution across our user base.
- Maintaining Liquidity Quality for Retail Participants: MEXC's liquidity infrastructure is optimized to provide retail traders with competitive execution quality and minimal slippage. High-frequency automated strategies can fragment available liquidity pools and widen effective spreads, degrading execution quality for non-institutional participants. Our policy preserves liquidity depth and accessibility for the retail trading community.
- Supporting Market Stability and Orderly Price Discovery: Certain automated trading strategies can amplify volatility during periods of market stress or distort natural price discovery mechanisms. By maintaining oversight of automated trading participants through our risk control process, MEXC reduces the risk of liquidity imbalances and supports stable, efficient price formation that benefits all market participants.
Institutional Participation and Automated Trading Management
Currently, MEXC's institutional API access is designed to onboard qualified market makers who can contribute meaningful liquidity depth, tighter spreads, and improved execution quality across our Futures markets.
API access must meet the following criteria:
- Completion of KYB (Know Your Business) institutional verification.
- Successful qualification review and assessment by MEXC's institutional team.
- Obtain Futures API access only after both parties have clearly established usage rules and confirmed compliance with relevant regulations
For inquiries, please contact institution@mexc.com for details.
MEXC maintains an open and collaborative approach toward automated trading, and we welcome constructive feedback from our community and users. While prioritizing user protection and market fairness, we remain committed to progressively exploring more balanced access frameworks that serve the evolving needs of our diverse trading community.
