Why MEXC Restricts Automated Trading
1. Why MEXC Strengthens Risk Controls
With its wide selection of trading pairs, strong liquidity, and low trading fees, MEXC has become a preferred platform for many investors. However, these advantages may also attract certain forms of non-compliant trading activity that can negatively affect market fairness and user experience.
For example, certain digital assets may only be available for trading on MEXC. Some users may specifically target these assets and attempt to take advantage of the platform's liquidity and lower trading costs through unauthorized or improper trading activities. Such behavior can negatively affect the trading experience of ordinary users, reduce opportunities for retail traders, and undermine market fairness.
To address these risks, MEXC must implement stricter risk control measures to identify and prevent improper trading behavior, ensuring a healthy, fair, and sustainable trading environment. Restricting unauthorized bot trading is one of the key measures used to protect users and maintain market order.
2. How MEXC Handles Unauthorized Bot Trading
To ensure the proper use of APIs, MEXC has established a clear authorization and enforcement framework for API access and automated trading activity.
API Access requirements:Users must complete KYC and agree to the platform's API usage rules before obtaining API access.
Risk Control and Enforcement Process
- Violation detected: If unauthorized activity is identified, including but not limited to API abuse, bot trading, or algorithmic trading, the account will be frozen immediately and an investigation will be initiated.
- First-time violation: For users who violate the rules due to a lack of understanding, are not engaged in malicious arbitrage, and have not caused significant market impact, the platform may restore account access after they review and agree to the relevant risk-control rules.
- Repeated violations: Users who repeatedly violate the rules may face stricter actions, including but not limited to permanent account restrictions.
3. Why API, High-Frequency, and Bot Trading Activities Are Restricted
MEXC restricts these activities for three primary reasons:
Protecting market fairness: MEXC regularly launches user-focused incentive events such as 0-Fee Fest. If unrestricted API-based high-frequency trading were allowed, such events could be exploited by arbitrage traders or automated bots, creating an unfair environment and ultimately harming ordinary users.
Protecting Retail Users: MEXC provides strong liquidity to help users trade more efficiently and achieve better execution. However, high-frequency arbitrage activity can reduce opportunities for ordinary users, disrupt normal market activity, and negatively affect the trading experience of retail participants.
Maintaining Market Stability: Malicious arbitrage behavior may create liquidity imbalances and contribute to abnormal price fluctuations. Restricting such activity helps maintain a stable and healthy trading environment over the long term.
4. API Access and Institution Participation
The primary objective of MEXC's restrictions on bot trading is to prevent malicious arbitrage, maintain market fairness, and protect the user experience.
Who Can Apply for API Access?
At present, API access applications are primarily available to institutional users. This approach is intended to attract qualified market makers that can provide deeper liquidity and improve trading efficiency, further enhancing the trading experience for all users.
API Access Requirements
Institutions applying for API access must meet the following requirements:
- Complete Know-Your-Business (KYB) verification (Institutional Verification).
- Pass the qualification review conducted by MEXC's institutional business team.
- Agree to and comply with the applicable usage rules.
Contact Information
Institutional users interested in API access may email [email protected] for more information.
5. Looking Ahead
MEXC remains open to bot trading and welcomes constructive feedback from the community and users.
While protecting user interests and maintaining market fairness, we will continue exploring more effective and balanced access mechanisms to help build a healthy, fair, and sustainable digital asset trading ecosystem together.