Security is at the core of BitMEX asset custody. BitMEX uses a combination of cold and hot wallets alongside industry-strength cryptography key management and rigorous operational security measures to protect user funds. Security is central to how BitMEX custodies user assets.
How does BitMEX protect custodied assets?
Security is central to how BitMEX custodies user assets, and the platform employs a multi-layered approach to ensure funds remain protected at all times. BitMEX stores the majority of user deposits in cold wallets, which are completely disconnected from electronic networks. Cold wallet isolation removes the possibility of remote access, meaning that even a full compromise of online systems would not put cold-stored funds at risk.
For day-to-day operational needs such as processing withdrawals, BitMEX maintains a smaller allocation in hot wallets secured by MPC (multi-party computation) technology. MPC ensures the private key is never held in a single location. Key creation, transaction signing, and key revocation all occur in a trustless distributed manner across multiple independent co-signing components. No single party can authorise a transaction alone, which significantly reduces the risk of insider threats and single points of failure.
Underpinning both wallet types is industry-strength cryptography key management. BitMEX applies rigorous access controls, audit trails, and operational security procedures at every stage of the custody lifecycle. Transaction rules enforced at the policy level add an additional safeguard, blocking any transfer that does not meet predefined criteria. For further details on how BitMEX segregates client funds from company assets, refer to the How Are Funds Segregated? article.