CEO Stephan Lutz on BitMEX Resilience During the October Crypto Crash

During the sharp crypto market crash of October 2025, which saw over $19.16 billion in liquidations, BitMEX experienced minimal impact, processing only about $37.9 million in liquidations (less than 0.2% of the total).

CEO Stephan Lutz attributed this resilience to deliberate engineering prioritizing stability over scale. Key factors included an "aggressive Multi-Asset Margining" system that only accepts highly liquid collateral with low haircuts (around 5%), unlike competitors who accept diverse, illiquid altcoins. Furthermore, BitMEX uses a composite index derived from 16 spot exchanges for its Fair Price Marking, preventing localized exchange failures or flash crashes from triggering unjust liquidations. The exchange's Insurance Fund remained fully solvent, automatically absorbing losses without needing human intervention for staking or lending.

Lutz rejected calls for new regulation, arguing the crash stemmed from high-risk behavior and that crypto's inherent transparency offers better protection than new rules. He advised traders to prioritize exchanges with transparent, rule-based operations, consistent documentation, and clear collateral policies over chasing high yields with their funds.

(Source：BeInCrypto)