Doing this in line with their MEXC $100 million user protection fund, the exchange announced recently. This fund was established to protect all users’ assets in the event of a security attack or other unexpected events. This move underscores MEXC’s commitment to proactive user security. Its goal is to provide a layer of protection to all the traders that will use the platform. The fund, which represents approximately 2.5% of MEXC’s daily spot trading volume of $3.98 billion, will be used to compensate users affected by platform-related incidents.
Fund Allocation and Coverage
The user protection fund would pay all users, in case of security breaches and related hacks. It will address harms from other platform-related abuses, like disinformation and hate-fuel. In an announcement, MEXC claimed the fund is “the most accessible.” Then, when an incident happens, they’ll be able to quickly deploy it to address that isolated occurrence. The exchange further stressed that their internal team will carefully and repeatedly review every claim and determine what happened to fairly and accurately compensate all affected users.
"Our internal team will gather all relevant information and determine the appropriate compensation based on the nature and extent of the loss," - MEXC spokesperson
In the past, this fund directly saved users’ lives. It equips them to act with a degree of confidence wherever they are trading, particularly on the MEXC platform. With this new fighting fund, MEXC is clearly demonstrating its commitment to providing users a more secure trading environment. This new initiative hopes to create user trust.
Commitment to Transparency and Security
Centralized exchange MEXC is increasing its user protection fund. Simultaneously, the platform is formally looking to introduce collaborations with reputable independent third-party auditing and risk management companies. As part of these collaborations, increased transparency and public oversight has been prioritized, improving additional layers of security. MEXC works with third-party specialists to continuously improve its security measures. While the ISDA has a wealth of expertise, this partnership provides an additional layer of scrutiny and validation.
MEXC’s commitment to security goes beyond financial safeguards. Through ongoing risk assessment, the exchange is constantly updating its security infrastructure and adopting advanced technologies to shield against evolving threats. Regular security audits and penetration tests are performed to find and fix vulnerabilities.
Leadership Perspective
MEXC’s chief operating officer Tracy Jin underscored the need for accountability and real-world protections within the cryptocurrency industry. She emphasized that the user protection fund is a tangible proof of MEXC’s commitment to its users.
"This isn’t just about promises, it’s about accountability and delivering visible safeguards when they matter most," - Tracy Jin, MEXC’s chief operating officer
Jin’s declaration embodies MEXC’s larger commitment to creating a safer and more trustworthy trading landscape. The user protection fund is a key part of realizing this vision. In doing so, it bolsters confidence among the MEXC user base.
