CoinDCX restricts futures trading after liquidity disruption
Key points
- CoinDCX has suspended new futures positions by placing its derivatives market in Reduce-Only mode.
- Traders can manage, reduce or close existing positions, while deposits and withdrawals remain operational.
- The restriction follows a liquidity disruption involving a global provider linked to cryptocurrency trading infrastructure.
CoinDCX has restricted futures trading following a liquidity disruption involving a major global cryptocurrency provider.
The exchange activated Reduce-Only mode, blocking new positions and preventing traders from increasing existing exposure.
Existing customers can still adjust margin, reduce positions or close trades, while deposits and withdrawals remain operational.
A CoinDCX spokesperson identified Binance as the affected liquidity provider in comments to CoinDesk.
The restriction reflects CoinDCX's reliance on external trading venues, with Binance among its sources of futures liquidity.
CoinDCX recorded just over $1 million in combined spot and futures trading volume over 24 hours, according to CoinGecko data.
CoinDCX said customer funds remain safe, with deposits and withdrawals continuing without interruption.
The incident highlights how disruptions at major liquidity providers can affect trading operations across connected cryptocurrency exchanges.
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