Wallet Security

Phemex has designed and implemented a Hierarchical Deterministic Cold Wallet System which assigns separate cold wallet deposit addresses to each user. All the deposits are periodically gathered in the company’s multisignature cold wallet via offline signature.
Phemex processes withdrawal requests 3 times/day, and each request is rigorously scrutinized by both operators and founders. Based on our sophisticated Wall Street risk control experience, we are able to detect any malicious actions and quickly act to protect the assets of our users and platform. Qualified withdrawal requests are also processed via offline signature, thereby all assets remain 100% stored in a cold wallet system with all operations conducted offline.
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System Security

Phemex deploys its system and secures its machines on the Amazon Web Service (AWS) Cloud.
Phemex uses several firewalls to separate different zones and machines for different trading purposes. There are multiple levels of security and internal network access management protocols to control the accessibility of one instance to another. Beyond network firewall management, Phemex also applies restrictions on a system level. In many restricted zones, we only allow whitelisted instances to access the system while the system itself must also be whitelisted.
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User Account Security

Phemex uses a two-factor authentication mechanism to protect all user accounts. When a user performs any critical operations such as login, funding, or password modifications, the system automatically triggers two-factor authentication. This forces the user to perform a secondary authentication to protect account integrity and security.
Similarly, Phemex uses a bank-level double-entry bookkeeping system to ensure account security. Double-entry bookkeeping is based on the balance of assets and equity as the basis for accounting. Each time a user performs a funding operation, Phemex performs a matching accounting action in two or more accounts to prevent the tampering of records. Through the double-entry bookkeeping mechanism, Phemex can immediately detect if the user's account has been tampered with. If so, the system will immediately freeze the tampered account and stops all of its pending actions and operations.
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Trading Engine Safety

The Phemex trading platform is comprised of two main core components: The CrossEngine and the TradingEngine. The CrossEngine strictly matches client orders based on price and time priority. The TradingEngine is responsible for managing a full set of risk checks on behalf of the client's trading account. These include costs, fees, PNL, computing, and more, in real-time.
Like other high-frequency trading systems, both of our engines were written in C++. The promising and predictable performance of C++ makes it ideal for modern trading systems. Due to the highly volatile nature of cryptocurrencies, users need engines to react as quickly as possible. Overloading is simply unacceptable. Velocity is an essential necessity for traders as their most concerning challenge is the inability to trade during big market movements. Our Phemex engines are at least 10x faster compared to other competitors. Our engines are also highly customized. We have minimized 3rd party lib dependencies to keep the core simple and fast.
On top of performance, seamless disaster recovery is another feature provided by our Phemex engines. We have developed our own recovery system that gives our users 99.99% high availability. Each engine runs with multiple hot and warm backups at the same time. In most cases, users will not even notice system maintenance periods or upgrades. Such seamless and fast recovery is critical for 24x7 exchanges.
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Report Security Issues and Bugs

Please report any security issues to . We will reward you based on the severity of the issue brought to our attention. email:
Phemex is a professional and trustworthy global cryptocurrency and derivatives trading platform.
© Copyright 2020 Phemex All rights reserved
PHEMEX RISK WARNING
INVESTING INHERENTLY INVOLVES RISKS, DO SO AT YOUR OWN RISK.
This Phemex Risk Warning illustrates potential risks that you may face while you use Phemex.com and all of its associated service, and helps you evaluate and determine your own capabilities. Please make sure that you carefully read and fully understand the terms, articles and/or conditions of this Phemex Risk Warning before and by continuing using Phemex.com. You hereby acknowledge that you have accepted the risks disclosed under this Phemex Risk Warning.
Phemex reserves the right to modify any of the terms of this Phemex Risk Warning without any prior notice. If any of the terms hereunder are unacceptable to you, you should not use Phemex.com.
Cryptocurrency trading is high-risk and speculative, and it is important that you understand the risks before you start trading. Followings are several risks that we would like to ensure that you are well aware of:
1.Price Risks:
Prices can and do fluctuate on any given day. This is even more true for Cryptocurrency trading – unexpected changes in market sentiment can lead to sharp and sudden moves in price. It is not uncommon for the value of Cryptocurrencies to quickly drop by hundreds, if not thousands of dollars.
2.Regulatory Risks:
Cryptocurrency transactions may face policy regulatory risks in a certain jurisdiction and may be suspended or prohibited at any time. Therefore, we advise you make a careful judgment before understanding the policy regulatory background of the trading region and evaluate the economic risk of losing the entire investment.
3.Tax Risks:
Keep in mind that Cryptocurrency trading may be subject to taxation. You are solely responsible for withholding, collecting, reporting, paying, settling and/or remitting any and all taxes to the appropriate tax authorities in such jurisdiction(s) in which You may be liable to pay tax. Phemex shall not be responsible for withholding, collecting, reporting, paying, settling and/or remitting any taxes (including, but not limited to, any income, capital gains, sales, value added or similar tax) which may arise from your participation in the Cryptocurrency trading.
4.Religion Limitation Risks:
Phemex cannot and does not provide services to the countries or territories where Cryptocurrency trading activities are especially licensed, accredited, or regulated by other ways. You shall check your applicable law and be fully responsible for any negative impact arisen from your residence country regulations. If you are travelling to any of these countries, you acknowledge that our services may be unavailable and/or blocked in such countries.
5.Risks of Change or Termination of Service:
PLEASE NOTE THAT COMPANY IS IN THE PROCESS OF UNDERTAKING A LEGAL AND REGULATORY ANALYSIS OF BITCOIN TRADING WITH MARGIN. FOLLOWING THE CONCLUSION OF THIS ANALYSIS, COMPANY MAY DECIDE TO AMEND THE INTENDED FUNCTIONALITY IN ORDER TO ENSURE COMPLIANCE WITH ANY LEGAL OR REGULATORY REQUIREMENTS TO WHICH COMPANY IS SUBJECT. WE SHALL PUBLISH A NOTICE ON OUR WEBSITE OF ANY CHANGES THAT WE DECIDE TO MAKE MODIFICATIONS TO THE FUNCTIONALITY AND IT IS YOUR RESPONSIBILITY TO REGULARLY CHECK OUR WEBSITE FOR ANY SUCH NOTICES. ON THE CONCLUSION OF THIS ANALYSIS, WE WILL DECIDE WHETHER OR NOT TO CHANGE THE FUNCTIONALITY OF THE WEB-SITE.
6.Risks of Cryptocurrency contract trading:
While you are participating contract trading, additional risks are involved. Compared with currencies, there can be even more significant variations in the pricing of cryptocurrencies, higher market volatility which causes gapping or slippage, and more charges and costs.
You need to understand that contract trading has the characteristics of high leverage, which may lead to rapid profit or loss. If the direction of the transaction is opposite to the fluctuation of the market, it will cause a large loss. According to the degree of loss, you need to set a stop loss, otherwise their positions may be forced to liquidate, and you must bear all the losses caused thereby. Once the order submitted in the trading system of the platform is concluded, it is irrevocable, and you must accept the risks that this method may bring.
The above is a non-exclusive list. Taking all of above into consideration, prior to using Phemex.com for Cryptocurrency trading, you promise that you:
1.are of an age of majority (at least 18 years of age), meet all other eligibility criteria and residency requirements, and are fully able and legally competent to use the Phemex.com, enter into agreement with the Phemex and in doing so will not violate any other agreement to which you are a party;
2.have necessary and relevant experience and knowledge to deal with cryptocurrencies and Blockchain-based systems, as well as full understanding of their framework, and are aware of all the merits, risks and any restrictions associated with cryptocurrencies and Blockchain-based systems, as well as know how to manage them, and are solely responsible for any evaluations based on such knowledge;
3.are not a foreign or domestic politically exposed person (PEP);
4.will not be using the Website for any illegal activity, including but not limited to money laundering and the financing of terrorism.
Moreover, please note that all the data analysis, projections, content, research, tools, and coin symbols are for educational and illustrative purposes only. They do not imply our recommendation or solicitation to buy or sell a particular asset or to engage in any particular investment strategy. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results, and are not guarantees of future results. You alone are responsible for evaluating the merits and risks associated with the use of Cryptocurrency trading on Phemex.com.
We advise you, to the extent necessary, consult an appropriate financial adviser, accountant, lawyer, or tax professional prior to Cryptocurrency trading. We sincerely hope and advise you to make a prudent decision on whether to participate in the Cryptocurrency transaction and reasonably allocate your digital assets based on your own actual financial conditions.
The terms used in this Phemex Risks Warning shall have the same meanings as in the Phemex Terms of Use except as otherwise provided herein.