Question 1: Please you Introduce the XMEX platform?
XMEX is a platform focusing on digital asset derivatives trading that founded in Seychelles in 2018. At present, XMEX has obtained Financial Service Licenses from Seychelles, United States and Canada. XMEX was established 12 localized transaction service centers in 8 countries including the United States, Japan, Singapore, Hong Kong, and Canada, which are developed and operated by an international professional team. Global digital asset users provide the most professional and smooth contract transaction services.
The founding team of XMEX comes from financial institutions such as BitMEX, Morgan Stanley, CICC, and Hang Seng Electronics. There are more than 100 R&D teams distributed worldwide. It is developed and completed by a team of senior experts in the financial industry to ensure the safe, stable and efficient operation of the trading platform. It can process millions of orders per second and support online transactions of over 20 million users. So far, XMEX has never had a risk incident such as theft of coins or theft of coins.
At the beginning of this year, the number of XMEX global users has exceeded 3 million, with an average daily trading volume exceeding 30.7 billion US dollars. In the past year, the total annual trading volume of the XMEX platform reached 6.75 trillion US dollars, the highest single-day peak trading value was 63.4 billion, the highest single-day trading number reached more than 86,000, and the cumulative recruitment of more than 8,100 partners. These achievements of XMEX also show that our leading position in Bitcoin contracts has been recognized by users and markets around the world.
Question 2: XMEX registered in 2018 and has now become one of the leading exchanges in the crypto contract field. There must be some success or outstanding advantages. Can you briefly talk about it?
In fact, there is no way to success. The most critical point of XMEX’s achievements today is the concept of “Customer First”. We have always regarded “Customer First” as the core concept of platform development. Since XMEX establishment, XMEX has always insisted on starting from the perspective of users, listening to user needs, and quickly converting user needs into product functions. We have made a lot of innovations in trading experience and operation, all of which originate from users and serve users. In product design, we borrowed from Apple’s product logic and pursued minimalism. Our vision is to let everyone understand the transaction in one minute, and everyone has a fair trading environment. In order to allow users to understand transactions with 0 basics, 0 costs, and 0 thresholds, and learn how to trade, we have set up a novice guide, a welfare center, and “100 Questions on Little White Transaction” and other novice transaction guidance functions to facilitate new users to understand the industry and understand Transaction, perception risk, control risk.
There are seven forces that promote the rise of the king of contracts, XMEX, which we summarized as: taking advantage of the trend, user first, cooperation and win-win, keen innovation, independent research and development, global compliance, and the courage to compete.
Question 3: As we know, security is the top priority for an exchange. So, what are the main parts of the security and control investment of a large exchange like XMEX?
There are many types of security risk control, including asset security, transaction security, and system stability.
First of all, in terms of the underlying technology, we independently develop and build the underlying technology. Whether it is in transaction risk control or transaction matching engine, a lot of research and development work has been invested, and it has basically reached the military-grade encryption protection measures, which can 100% guarantee the security of users’ digital assets. XMEX currently has a three-layer security system for comprehensive security audits.
Secondly, our team members are all top experts in the field of digital assets in the industry, as well as traditional metalworking technical teams. The members are all elites from top companies like Morgan Stanley, CICC, Hang Seng, and they are absolutely professional enough in the design of risk control models.
The volatility of the market actually tests the risk control ability of investors, and this kind of market also has high requirements for the stability of the exchange’s system. In this regard, XMEX has been doing technical construction. For example, we will improve the throughput of the system by improving the processing capacity of system unit modules to deal with extreme market conditions and keep trading services running normally.
In terms of product design, in order to protect transaction security, we are also the first to introduce six innovative functions such as order opening stop loss, one-click reverse opening, one-click closing, and two-way multi-position mechanism, which can effectively help users reduce Position risk. This is something that has been verified by users in actual combat.
In addition, XMEX created the world’s first transaction protection fund, which includes the “abnormal market penetration protection fund” and the “third-party accident protection fund”. The platform will compensate users for losses caused by problems such as pin insertion and downtime. It perfectly solves several stubborn problems in contract transactions, and users will also reduce a lot of worries when trading.
Question 4: Last year from October to December 12, there were successive incidents of loss of connection of the wallet private key management of the trading platform. At that time, what upgrades did XMEX make in the private key management mechanism?
For the special event some time ago, we also upgraded the private key management mechanism, mainly by backing up the private key of hot and cold wallets. Currently, XMEX backup private keys are stored in bank safes in the United States, Canada, and Singapore. The remote bank safe is controlled by three different people, and the three people who master the bank safe are not allowed to take the same vehicle. We also adopt such a measure to further reduce the risk of key loss or damage.
In our long-term practice, we have formed a design concept and operation method based on private key backup, online deposit to cold wallet, and cold wallet withdrawal, including multiple methods such as backup wallets. XMEX is a complex and sophisticated set of The asset custody plan requires a lot of manpower and cost expenditure. Through this centralized exchange management, the risk of asset theft can be reduced to a lower level to further protect the user’s funds and transaction security. We are also currently developing a decentralized wallet, which is expected to be launched in February next year, when user assets can be stored in our own hands. It’s safer.
Question 6: How will XMEX deal with some uncertain risks? As with 3·12, it is not as long as some online items appear to trigger evil actions.
First of all, XMEX is focused on the field of contracts and derivatives, so we only launched some mainstream currencies for spot, and we do not support the launch of some project currencies with too much uncertainty. As for 312 this kind of uncertain risk, we take risk control measures in two directions, before and after.
Regarding the pre-event, our risk control team will monitor the market trend in real time, summarize a large amount of data, and promptly inform users of possible market fluctuations to pay attention to risks.
And we use a double price mechanism to increase the difficulty of price manipulation. XMEX uses a reasonable marked price as the trigger point for forced liquidation. The marked price is calculated in real time with reference to the prices of the five major exchanges. The platform itself has absolutely no ability to influence the mark price, and there is no such thing as evil.
In addition, we adopt innovative mechanisms such as automatic lightening and stepped liquidation, which can effectively help users reduce risks under extreme market conditions. Everyone is welcome to come to the platform for consultation on this specific situation.
Let’s talk about risk control after the event. We mentioned the transaction protection fund just now. Because of this extreme market situation and network fluctuations are uncontrollable factors, the platform cannot manipulate the market, and can only try to make up for the user’s loss after these uncontrollable problems occur. This is also our original intention to launch the three major guarantee funds. The platform will do its best to provide users with a relatively safe and secure trading environment, so that users will not suffer asset losses due to these uncontrollable factors.
