MEXC's $414M Insurance Fund: Safeguarding Traders in Volatile Markets

MEXC, a leading global cryptocurrency exchange, has provided over $414 million through its Insurance Fund Account to cover deficits that occur when users’ losses during liquidation exceed their available margin as of January 23, 2025. This figure highlights MEXC’s focus on asset security and risk management. Alongside its Insurance Fund Account, MEXC provides measures aimed at safeguarding traders during periods of market volatility.

The MEXC Insurance Fund Account, introduced in November 2024, is intended to help mitigate the impact of market fluctuations. Should the liquidation price be worse than expected, resulting in losses that exceed the available potential margin, the Insurance Fund steps in to cover these excess losses, thus facilitating a smoother liquidation process. The fund is replenished through surpluses from liquidation orders executed at prices more favorable than anticipated, supporting its stability and functionality during periods of significant market volatility.

In line with its commitment to transparency, MEXC provides users with direct access to both current and historical insurance fund amounts for various cryptocurrencies on the platform. Additionally, MEXC provides reserve rates to ensure asset safety and maintain transparency for its users. This allows users to trade with confidence, free from concerns about withdrawal runs. The reserve rates are updated every two months. As of Dec 1, 2024, the latest reserve rates for various cryptocurrencies are as follows:

USDT: 104.52% USDC: 116.52% BTC: 105.88% ETH: 105.65%

By offering high leverage alongside an Insurance Fund Account and Reserve Rate exceeding 100%, MEXC ensures multiple layers of protection to safeguard traders’ positions and ensure asset security.

In addition to implementing robust safety measures to ensure a secure trading environment, the platform offers a variety of features and services designed to enhance the user experience. These features are designed to help traders manage costs effectively. MEXC aims to support traders by providing access to a broad range of assets and facilitating secure and efficient transactions under varying market conditions.

MEXC is known for its rapid token listings and diverse selection of popular tokens, helping users capitalize on emerging opportunities. To date, over 3,000 tokens have been listed on the platform. MEXC makes it