MEXC Supplementary Explanation of YGG_USDT Perpetual Futures Trading Data Abnormalities (August 8)
Dear MEXCers,
On August 7, 2023, between 10:00 and 13:00 (UTC), there was a significant deviation between the spot and futures trading prices of YGG (23% or more), resulting in abnormal trading data in the YGG_USDT perpetual futures market. Subsequently, several traders sustained substantial losses in a short period of time. In order to maintain market order, ensure trading fairness, and protect the rights of fairly trading MEXCers, MEXC has managed user trading behavior, identified abnormal trading behavior, and initiated processing procedures whereby abnormally trading users will be managed effectively.
At the same time, we have airdropped a 100 USDT futures bonus to each affected user. These measures might be confusing to some users or lead to misunderstanding. If you have any questions, please contact our customer service for review, confirmation, and resolution.
The following actions are considered abnormal trading behavior:
- Frequent placement and cancellation of orders that may affect the trading price or mislead other market participants (frequent order placement and cancellation).
- Repeatedly placing and canceling large orders that may affect the trading price or mislead other market participants (large order placement and cancellation).
- Issuing trading instructions through algorithmic trading methods that may affect MEXC's system security or normal trading order.
- Exploiting the liquidation mechanism for malicious arbitrage,
for example: If a user has 10 USDT and invests all funds with 200x leverage under cross margin mode, the position value is 2000 USDT. Due to a deviation between the fair price and the order book, the user's position will immediately have floating profits. Users on the opposing side, however, will incur floating losses. When this happens, the platform's liquidation function does not effectively trigger, allowing users to continuously add positions using floating profits. They wait for the order book trend to move in a profitable direction before closing the position, thus achieving abnormal profits.
5. Other situations as determined by MEXC.
We deeply apologize for any impact and inconvenience this may have caused you. MEXC will continue to strive to provide you with superior products and high-quality services.
Thank you for your support and understanding!
MEXC Team
August 8, 2023