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MGBX Exchange Abnormal Trading Conduct Risk-Control Rules (2025 Revision)

MGBX
Updated

Chapter 1 General Provisions

1.1 To maintain a fair trading environment and prevent market manipulation, wash trading, arbitrage abuse, and other improper conduct, these Rules define the criteria for identifying abnormal trading behavior and the corresponding handling measures.
1.2 These Rules apply to all MGBX users and partners. Violations will be handled according to the degree of severity through a tiered enforcement system.
1.3 The platform’s risk control system adopts real-time automated monitoring combined with manual review to determine violations.

 

Chapter 2 Definition of Abnormal Trading Behavior

2.1 Ultra-Short-Term Trading Frequent opening and closing of positions in an ultra-short time frame; any single order with a holding duration of less than 40 seconds.
2.2 Excessive / High-Frequency Trading Behavior Unusually large intraday open positions that clearly exceed normal trading activity. Within the same rebate day, if the number or value of orders executed within 3 minutes and 30 seconds is ≥ 50% of the total daily volume, it is deemed abnormal.
2.3 Coordinated Violations by Related Accounts (Same KYC information, device, IP address, fund flow records, or similar trading behavior patterns)
  • Market Manipulation: Using related accounts to manipulate market prices through matched or reverse trades to gain illicit profits.
  • Self-Trading: Executing trades between the same or related accounts.
  • Position Limit Breach: Combined positions across related accounts exceeding the exchange’s position limit.
  • Wash Trading: Conducting wash trades using personal and related accounts.
  • A/B Account Trading: Using one or multiple accounts to perform A/B trading.
  • Abnormal Convergent Trading: Abnormally convergent trading behavior between related accounts.
  • Multi-Device / Multi-Account Fee Farming: Using multiple devices or accounts to farm fees or perform hedge transactions.

2.4 Unauthorized Code / Account Theft Trading Accessing another person’s account or using related accounts to conduct illegal trades or fund transfers without authorization.

2.5 Technical Violations
  • High-Frequency Trading: Unreported API-based programmatic order rate exceeding 100 times per second or cancellation rate ≥ 70%.
  • Exploit Abuse: Including but not limited to funding rate arbitrage, oracle price manipulation, and system latency arbitrage.
2.6 Unauthorized Quantitative Trading Conducting quantitative arbitrage trading without authorization.
2.7 Managed Account Trading (Proxy Trading) Trading by operating another person’s account on their behalf.
2.8 Price Manipulation and Malicious Behavior Including pump-and-dump, spoofing, fake orders, fake transactions, or other malicious activities affecting market prices.
2.9 Exploiting System Vulnerabilities or Defects for Profit Including the use of technical or abnormal methods to profit or harm other users or the platform’s interests.
2.10 Harmful Market Behavior Any behavior that undermines fairness, stability, or damages user rights — including spreading false information, misleading trading signals, or collusive arbitrage.
2.11 Small-Cap Arbitrage Trading Conducting patterned or abnormal trading by exploiting funding rates or liquidity depth of minor tokens.

 

Chapter 3 Tiered Penalty Mechanism

  1. Standard Futures Trading:
    Violation Level Determination Criteria Penalty Measures
    Minor First-time offense with no profit gained Warning + 50% rebate settlement for the day
    Moderate Repeated offense or profit < 1,000 USDT 3-day account freeze + recovery of illicit gains
    Severe Malicious manipulation or profit ≥ 1,000 USDT Permanent ban + confiscation of principal and profits
  2. Futures Bonus (Trial Fund) Trading: Profits derived from violations of risk control rules will not be distributed or will be reclaimed.
  3. Copy Trading (Lead Trader): Immediate termination of trader status with permanent disqualification from future cooperation.

 

Chapter 4 Appeals and Transparency

4.1 Appeal Process:
  • Users must submit supporting evidence to Help@mgbx.com within 7 days after penalties are imposed.
  • The Risk Control Team will respond within 48 hours (public holidays excluded).
  • Disputed cases will be jointly reviewed by the Risk Control and Technical Teams, and final rulings will be announced within 15 days.

 

Chapter 5 Supplementary Provisions

5.1 These Rules will be periodically reviewed and updated; any major revisions will be announced 7 days in advance.
5.2 The final interpretation of these Rules belongs to MGBX. For matters not covered herein, please refer to the User Agreement.
 
Effective Date: July 22, 2025
 
MGBX Team
July 22, 2025

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