MEXC, a prominent global cryptocurrency exchange, has allocated over $414 million via its Insurance Fund Account to address deficits that arise when users’ losses during liquidation surpass their available margin as of January 23, 2025. This noteworthy amount highlights MEXC’s dedication to asset protection and risk management. Alongside Proof of Reserve, MEXC provides traders with solid safeguards against severe market shifts.
How MEXC’s Insurance Fund Account Reduces Risk for Traders
The MEXC Insurance Fund Account, initiated in November 2024, is specifically formulated to shield traders from significant market variations, such as those seen during a bull run, where swift price shifts can cause a user’s account value to fall below the necessary margin level, prompting a liquidation. If the liquidation price turns out to be worse than anticipated, leading to losses that exceed the available margin (a situation referred to as bankruptcy), the Insurance Fund intervenes to cover these additional losses, thus ensuring a more seamless liquidation process.
The fund is consistently replenished by profits generated from liquidation orders executed at more favorable prices, guaranteeing its stability and continuous protection during periods of heightened volatility.
In accordance with its pledge to transparency, grants users direct access to both current and past insurance fund amounts for various cryptocurrencies available on the platform.
Moreover, MEXC supplies Proof of Reserve to assure asset safety and uphold transparency for its users. This enables users to trade confidently, unburdened by concerns regarding withdrawal runs. The reserve metrics are updated bi-monthly. As of Dec 1, 2024, the latest reserve statistics for various cryptocurrencies are as follows:
USDT: 104.52%
USDC: 116.52%
BTC: 105.88%
ETH: 105.65%
By providing high leverage along with an Insurance Fund Account and Reserve Rate exceeding 100%, MEXC guarantees multiple layers of protection to safeguard traders’ positions and ensure asset security.
The Preferred Platform for Effortless Crypto Trading
Aside from establishing strong safety protocols to maintain a secure trading atmosphere, the platform offers a multitude of features and services tailored to enhance user experience. These functionalities assist traders in minimizing expenses and maximizing returns. MEXC is dedicated to empowering traders by facilitating investments across an extensive array of assets, ensuring safe and smooth transactions regardless of market conditions.
M – Most Popular Tokens: MEXC is recognized for its swift token listings and varied range of sought-after tokens, aiding users in seizing emerging opportunities. To date, over 3,000 tokens have found a place on the platform.
E – Daily Airdrops: simplifies the process for users to participate in daily airdrop events and earn substantial rewards without cumbersome procedures. In 2024, the platform executed 2,293 airdrop events and dispersed over $136 million in rewards.
X – Extremely Low Fees: provides competitive trading fees, enabling users to lower expenses and enhance their growth potential.
C – Extensive Liquidity: Supported by robust liquidity and market depth, MEXC ensures the efficient and seamless execution of every transaction, reducing slippage even in volatile conditions.
These elements have contributed to MEXC attracting more than 30 million users from over 170 countries, establishing it as the platform of preference for an expanding number of traders globally.
Discover more about the MEXC Insurance Fund Account.
About MEXC
Established in 2018, MEXC is devoted to being “Your Easiest Way to Crypto”. Servicing over 30 million users across 170+ nations, is distinguished for its vast collection of trending tokens, frequent airdrop chances, and minimal trading fees. Our user-friendly platform is designed to cater to both novice traders and seasoned investors, providing secure and efficient access to digital assets. MEXC emphasizes simplicity and innovation, making crypto trading more accessible and rewarding.
Risk Disclaimer:
The content presented in this article regarding cryptocurrencies does not reflect MEXC’s official viewpoint or trading advice. Considering the highly erratic nature of the cryptocurrency market, investors are urged to thoroughly assess market movements, project fundamentals, and potential monetary risks prior to making any trading choices.
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