Traders start losing control of open positions as BitMEX begins its staged shutdown

As the BitMEX closure approaches, the derivatives exchange will enter reduce-only mode at 04:00 UTC on Aug. 26. Traders will lose the ability to place new positions, while the exchange may close existing positions during its wind-down.

The BitMEX closure follows a strategic review by the board of HDR Global Trading Limited, BitMEX's owner and operator, which decided to close the exchange. BitMEX said financial distress, a hack and immediate regulatory pressure were not the causes of the decision.

Under the closure timetable and operational FAQ, traders will still be able to reduce existing exposure after the Aug. 26 cutoff. From then until the final closure on Sept. 23, BitMEX says it may force-close positions to support an orderly wind-down. The exchange accepts no responsibility for trading losses caused by users being unable to close positions during that period.

During the BitMEX closure, positions may remain open after Aug. 26, but traders will lose the ability to add exposure and face the possibility that BitMEX intervenes before the mandatory close. The deadline therefore marks the point when users begin surrendering control over execution timing rather than the moment every position closes.

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