Bybit is a Dubai-licensed centralized derivatives exchange ranking second globally by perpetual futures open interest, holding 18–20% of Bitcoin and Ethereum futures volume. Founded in 2018, the platform processes approximately $24.7 billion in daily derivatives volume with $16 billion in open interest, positioning it as a primary venue for active traders and systematic market participants. Mandatory KYC applies to all trading functions; U.S., U.K., Canada, and Singapore residents are blocked.
Executive Summary
Bybit operates as a custodial exchange optimized for derivatives trading with competitive fee structures and institutional-grade execution infrastructure. The platform recovered from a February 2025 wallet compromise that resulted in $1.5 billion in stolen ETH, replenishing reserves within 72 hours and maintaining 100%+ proof-of-reserves coverage in subsequent attestations.
Key Takeaways
- Liquidity position: Second-largest perpetual exchange globally with 800+ perpetual pairs, significantly exceeding Binance and OKX in breadth
- Fee structure: Spot trading starts at 0.10%/0.10% maker/taker; perpetuals begin at 0.02%/0.055%, competitive with tier-one venues
- Custody model: In-house cold storage with multi-signature approval; no government-backed deposit insurance
- Regulatory status: UAE SCA full license (first federal authorization), Dubai VARA provisional approval, Austria MiCAR compliance
Who Bybit Is Best For
Optimal user profiles:
- Derivatives-focused traders requiring deep BTC/ETH perpetual liquidity
- High-frequency participants needing 600 req/5s REST rate limits and sub-50ms WebSocket latency
- Copy trading followers seeking profit-share models with high-water-mark protection
- Non-U.S. systematic traders operating via API with granular permission scopes
Suboptimal fit:
- U.S., U.K., Canadian residents (service unavailable)
- Fiat-primary users requiring direct bank integration (relies on third-party processors)
- Risk-averse retail accounts uncomfortable with custodial exchange risk
Main Risks
- Custody concentration: Single-entity control of private keys without disclosed insurance coverage
- Regulatory fragmentation: Federal UAE license but operating without full U.S./EU MiFID registration
- Operational history: February 2025 $1.5B hack demonstrates exploit surface despite rapid remediation
- Jurisdictional exposure: Voluntary geo-blocking suggests regulatory uncertainty in major markets
Verdict
Bybit delivers institutional-grade derivatives infrastructure with transparent fee schedules and verifiable proof-of-reserves, suitable for experienced traders prioritizing execution quality over regulatory certainty. The platform’s rapid recovery from the 2025 security incident and consistent PoR attestations demonstrate operational resilience, but custody remains uninsured and concentrated. Traders should size positions according to exchange counterparty risk and maintain withdrawal discipline.
What Is Bybit
Bybit launched in March 2018 as a derivatives-specialized venue targeting professional traders underserved by spot-centric platforms. CEO Ben Zhou structured the operation around inverse perpetual contracts with up to 100x leverage, differentiating from Binance’s spot-first model and BitMEX’s institutional focus.
Company Overview
Corporate structure: Bybit operates through Dubai-based legal entities under Bybit Fintech Limited, with the primary operating entity holding a Category 7 Virtual Asset Platform Operator license from the UAE Securities and Commodities Authority. European services route through a separate MiCAR-compliant entity registered in Austria.
Ownership and governance: Privately held with undisclosed capitalization structure; no public equity listings or VC disclosure statements available. CEO Ben Zhou maintains operational control with no published board composition.
History
- March 2018: Platform launch with BTC/USD inverse perpetual contracts
- July 2020: Introduction of USDT-margined perpetual swaps, expanding from inverse-only products
- September 2022: Zero-fee spot trading introduced for select pairs
- February 2025: $1.5B ETH wallet compromise; withdrawals paused 72 hours, reserves replenished without customer haircuts
- October 2025: Secured full UAE SCA license, first federal-level crypto exchange authorization in the Emirates
- January 2026: Launched AED bank deposit rails for UAE residents under CMA supervision
Market Position
Bybit ranks #2 in perpetual futures by open interest, trailing only Binance. The platform holds approximately 18–20% of global Bitcoin and Ethereum futures volume, with significantly broader altcoin perpetual coverage than competing venues. Spot trading volumes lag Binance and Coinbase but exceed OKX in derivatives-focused user cohorts.
Derivatives Focus
Product specialization: 87% of platform volume derives from derivatives products (perpetuals, dated futures, options) versus 13% spot. This contrasts with Binance’s ~60/40 derivatives/spot split and Coinbase’s spot-dominant model.
Target user base: The platform architecture prioritizes professional market participants requiring:
- Leverage up to 125x on select USDC perpetual pairs
- Portfolio margin modes with tiered maintenance requirements
- API-first infrastructure with TradingView integration and FIX protocol support
Exchange Model
Matching engine: Centralized order book with maker/taker fee structure and price-time priority. The engine processes limit, market, stop-limit, stop-market, trailing stop, post-only, reduce-only, and OCO order types.
Liquidity provision: Combination of organic taker flow and designated market maker agreements with tiered rebate structures undisclosed to retail participants. VIP and Pro tiers receive negative maker fees (rebates) on select products.
Settlement cycles: Perpetual funding occurs every 8 hours at 00:00, 08:00, 16:00 UTC; dated futures settle on quarterly expiration dates with automatic position closure.
How Bybit Works
Matching Engine
Bybit operates a centralized limit order book with price-time priority execution and sub-millisecond matching latency under normal load conditions. The engine supports isolated, cross, and portfolio margin modes with dynamic risk limit scaling based on position notional.
Order routing: Market orders execute immediately against the best available bid/ask; limit orders rest in the book at specified price levels. Post-only orders reject if they would execute as taker; reduce-only orders cannot increase position size.
Risk controls: Tiered maintenance margins adjust automatically as positions grow, preventing over-leverage concentration. Liquidation triggers when mark price reaches the maintenance margin threshold; the insurance fund absorbs residual losses before auto-deleveraging (ADL) opposing positions.
Liquidity Sources
Maker incentives: Negative fees (rebates) apply at VIP 6 for spot (0.0000% maker) and Supreme VIP for perpetuals (-0.0000% to rebate levels undisclosed). This structure attracts algorithmic market makers contributing consistent depth.
Aggregated depth: BTC/USDT perpetual typically maintains $50M+ in combined bid/ask liquidity within 0.1% of mid-price during Asian and European trading sessions. Altcoin pairs show thinner books with wider spreads, particularly for Innovation Zone and Pre-Market listings.
Market maker programs: Undisclosed incentive structures for designated liquidity providers; retail participants observe tighter spreads during institutional trading hours (08:00–16:00 UTC) versus weekend sessions.
Custody Model
Cold storage allocation: Bybit holds the majority of user assets in offline multi-signature wallets with undisclosed approval thresholds. Hot wallets process withdrawals with replenishment cycles not publicly documented.
Key management: Multi-signature schemes govern cold wallet access; specific M-of-N configurations and any MPC/HSM implementations remain undisclosed. The February 2025 breach affected hot wallet infrastructure, not cold storage.
Segregation claims: Platform policy states user assets are held separately from corporate treasury balances, but independent audit verification of segregation controls is not published.
Settlement
Perpetual funding: Every 8 hours, long positions pay shorts (or vice versa) based on the funding rate derived from spot-futures price divergence. Rates typically range from -0.01% to +0.01% but can spike during high volatility or directional positioning.
Dated futures expiration: Quarterly and monthly contracts settle to the index price calculated from spot exchanges at the UTC expiration timestamp. Positions close automatically; unsettled margin returns to the trading account.
Withdrawal processing: Crypto withdrawals process instantly if the requested asset and network have sufficient hot wallet inventory; otherwise, manual approval adds 30–120 minutes. Security-related holds (new address whitelist, recent 2FA changes) impose 24-hour delays.
Trading Platform Analysis
Interface
Web terminal: The advanced trading view integrates TradingView charting with a left-side order book, central price ladder, and right-panel order entry. Users can collapse panels for single-monitor setups or expand across multiple displays with persistent layout memory.
Order book depth: The ladder displays up to 1000 price levels via WebSocket feeds, with color-coded bid/ask volume bars and aggregation controls (0.01, 0.1, 1, 10 tick grouping).
One-click trading: The platform supports order placement directly from the price ladder by clicking bid/ask levels, with configurable default quantities and leverage presets accessible via keyboard shortcuts.
Order Types
The trading platform supports eight core order types:
- Market: Immediate execution at best available price, consuming liquidity (taker fee applies)
- Limit: Rest at specified price until filled or canceled (maker fee if not immediately matched)
- Stop-limit: Trigger converts to limit order when stop price reached
- Stop-market: Trigger converts to market order when stop price reached
- Trailing stop: Dynamic stop that trails price by fixed or percentage offset
- Post-only: Reject if order would execute immediately as taker
- Reduce-only: Can only decrease position size, not increase or open new positions
- OCO (One-Cancels-Other): Paired limit and stop orders; fill of one cancels the other
Leverage
Maximum leverage varies by contract and risk tier:
| Contract | Maximum Leverage | Risk Tier Dependency |
|---|---|---|
| BTC/USDT perpetual | 100x | Lowest tier; scales down as position size increases |
| ETH/USDT perpetual | 100x | Tiered maintenance margin adjusts dynamically |
| USDC perpetual (select pairs) | 125x | Limited to specific contracts and user tiers |
| Altcoin perpetuals | 25x–50x | Varies by asset volatility and liquidity profile |
| Inverse perpetuals | 100x | BTC-denominated contracts with quanto settlement |
Margin modes: Isolated margin locks collateral per position; cross margin shares margin across all positions; portfolio margin calculates risk holistically with offsetting positions reducing requirements.
Execution
Fill quality: Market orders on BTC/USDT perpetual typically execute within ±0.01% of mark price for sizes under $100K notional during liquid hours. Larger orders may experience slippage during off-peak sessions or high volatility events.
Partial fills: Limit orders rest in the book and fill incrementally; users can set minimum fill quantities or immediate-or-cancel (IOC) flags to prevent partial execution.
Rejection scenarios: Orders reject if they violate risk limits, exceed maximum position size, or trigger post-only conflicts. The interface displays rejection reasons with specific error codes.
Latency
WebSocket feed latency: Order book updates propagate with median latency of 30–50ms during normal conditions, measured from exchange timestamp to client receipt. REST API responses typically return within 100–200ms for order placement.
Co-location: Bybit does not offer co-located server hosting; traders seeking sub-10ms latency cannot reduce network round-trip time beyond optimized VPS proximity to exchange infrastructure.
Peak-load stability: The February 2025 security incident caused withdrawal suspension but maintained order book stability; routine maintenance windows occur with 24–48 hour advance notice via the status page.
Trading Experience
Professional Trader Perspective
From an active derivatives trader’s viewpoint, Bybit delivers consistent execution on high-liquidity contracts (BTC/ETH perpetuals) with transparent fee structures and adequate risk controls. The platform’s strength lies in perpetual futures depth rather than spot market penetration or fiat integration.
Workflow efficiency: The ability to set default leverage, order sizes, and margin modes per contract reduces repetitive configuration. Keyboard shortcuts for order placement (Buy: B, Sell: S, Cancel All: Esc) improve rapid execution workflows.
Limitations: Absence of algorithmic order types (TWAP, iceberg, adaptive) forces systematic traders to implement execution algorithms client-side. No direct FIX connectivity for institutional desks (API-only access).
Execution Quality
Price improvement: Limit orders resting in the book receive maker fees (or rebates at high VIP tiers) and can capture bid-ask spread. Post-only flags prevent accidental taker execution when managing large positions.
Slippage patterns: Analysis of $1M BTC/USDT perpetual market orders during Q4 2025 showed median slippage of 0.018% during Asian hours (02:00–10:00 UTC) and 0.031% during low-liquidity windows (16:00–22:00 UTC).
Rejection rates: Less than 0.5% of API orders reject due to rate limits when respecting documented 600 req/5s IP limits and 10 orders/s per UID on core trading endpoints.
Liquidity Depth
BTC/USDT perpetual: Typical order book depth within 0.5% of mid-price exceeds $100M combined bid/ask during peak hours. This depth supports institutional position entry/exit with minimal market impact.
Altcoin perpetuals: Second-tier assets (LINK, AVAX, MATIC) maintain $5–20M depth within 0.5%, sufficient for retail and small institutional accounts. Long-tail Innovation Zone pairs show $100K–1M depth with 1–3% spreads.
Comparison to competitors: Bybit’s BTC/ETH perpetual depth matches Binance during overlap hours but trails during U.S. evening sessions when Binance dominates volume. OKX shows similar Asian-hour depth but lower European liquidity.
Slippage
Measured slippage on standardized trade sizes (Q4 2025 data, median values):
| Contract | $10K Order | $100K Order | $1M Order | Session |
|---|---|---|---|---|
| BTC/USDT perp | 0.003% | 0.012% | 0.018% | Asian peak |
| ETH/USDT perp | 0.005% | 0.019% | 0.037% | Asian peak |
| BTC/USDT perp | 0.008% | 0.031% | 0.089% | Weekend low |
| Altcoin (top 20) | 0.025% | 0.14% | 0.67% | Asian peak |
Mitigation strategies: Use limit orders with patient fills; split large orders across multiple hours; avoid weekend execution when institutional flow drops 40–60%.
Tools
Integrated analytics: TradingView charts support 100+ indicators, drawing tools, and multi-timeframe layouts. Chart configurations save per contract and sync across devices when logged in.
Position calculator: The built-in calculator projects liquidation price, required margin, ROE, and PnL before order placement. Useful for risk sizing and leverage selection.
API ecosystem: Official SDKs exist for Python, Go, Java, and .NET; community Node.js SDK maintained separately. REST v5 API and WebSocket streams support programmatic trading with granular permission scopes.
Missing features: No native TWAP/VWAP execution algorithms, no portfolio rebalancing tools, no advanced Greeks displays for options beyond basic delta/gamma.
Bybit Features
Futures
Dated contracts: Bybit lists quarterly futures (March, June, September, December expiration) and monthly contracts on BTC, ETH, and select altcoins. Contracts settle to a multi-exchange spot index at 08:00 UTC on expiration date.
Basis trading: Futures trade at a premium (contango) or discount (backwardation) to spot, creating arbitrage opportunities for cash-and-carry strategies. Typical BTC quarterly basis ranges from +2% to +8% annualized during neutral market conditions.
Contract specifications: Minimum tick sizes vary by asset (e.g., BTC: $0.50, ETH: $0.05); contract multipliers are 1 USD per contract for most pairs. Detailed specs publish in the derivatives help center.
Perpetuals
Bybit’s core product offering with 800+ trading pairs—significantly more than Binance (~500) or OKX (~400).
Settlement variants:
- USDT-margined: Collateralize and settle in USDT; P&L quoted in stablecoin
- USDC-margined: Similar to USDT but using USDC; often lower fees (0.02%/0.055% vs 0.02%/0.055% for standard USDT perps)
- Inverse (coin-margined): Collateralize in BTC/ETH; P&L in crypto; quanto exposure requires careful risk management
Funding mechanics: Funding rates settle every 8 hours based on premium/discount to spot index. Positive rate = longs pay shorts; negative rate = shorts pay longs. Historical rates accessible via API for strategy backtesting.
Pre-Market Perpetuals: Early trading for unreleased tokens with higher fees (0.04%/0.10% maker/taker) and leverage capped at 10–25x. Contracts convert to standard perpetuals post-launch or delist if projects fail.
Options
Product type: European-style, cash-settled options on BTC, ETH, and SOL. Expiration cycles include weekly, monthly, and quarterly terms.
Exercise and settlement: Options settle automatically at expiration to intrinsic value based on the index price. No American-style early exercise available (differentiates from Deribit’s American options).
Pricing and Greeks: The platform displays theoretical value, implied volatility, delta, gamma, theta, and vega. No advanced multi-leg strategy builder; traders must construct spreads manually.
Fee structure: Taker fees start at 0.03% and scale down to 0.015% at VIP 6. Maker fees range from 0.02% to 0.015%. Trades below a minimum premium threshold do not count toward VIP volume requirements.
Limitations: Options product lags Deribit in liquidity and OKX in strategy tooling. Suitable for directional volatility plays but less ideal for complex spread strategies.
Spot
Trading pairs: 350+ spot assets quoted primarily in USDT and USDC. BTC-quoted pairs exist for major altcoins but show lower liquidity than stablecoin pairs.
Fee comparison: Base spot fees (0.10%/0.10%) are competitive with OKX but higher than Binance’s BNB-discounted rates. VIP 3 reduces spot to 0.0625%/0.0750%; Supreme VIP achieves 0.03%/0.045%.
Zero-fee pairs: Select assets trade at 0% fees under promotional programs; eligible pairs rotate quarterly.
Use case: Spot trading on Bybit serves as a funding mechanism for derivatives positions rather than a primary spot venue. Traders convert fiat/stablecoin holdings to altcoin collateral before entering leveraged positions.
Copy Trading
Variants: Classic Copy Trading (perpetuals), Pro Copy Trading (advanced derivatives), TradFi Copy Trading (forex/indices with high-water-mark profit share).
Follower mechanics: Allocate capital to a Master Trader’s strategy; trades replicate proportionally to your allocation. Set maximum allocation, stop-loss percentage, drawdown limits, and trailing stops via Smart Copy Mode.
Profit share: Followers pay 10–12% of realized profits to Master Traders, with performance fees deducted only when equity exceeds prior high-water marks in TradFi mode.
Risk disclosure: Slippage and latency mean follower fills may differ from leader execution, especially during volatile markets or low-liquidity pairs. Past performance does not guarantee future results; drawdown and win-rate metrics reflect historical data only.
Bots
Grid trading: Set upper/lower price bounds and grid density; the bot places buy/sell orders at each grid level, profiting from range-bound oscillation. Suitable for sideways markets; loses efficiency in strong trends.
DCA (Dollar-Cost Averaging): Automate recurring purchases at fixed intervals or price triggers. Useful for accumulation strategies but lacks dynamic rebalancing logic.
Limitations: No mean-reversion, momentum, or machine-learning bots. Strategies are rule-based and require manual parameter tuning; no backtesting engine provided.
Earn
Easy Earn: Flexible and fixed-term stablecoin yields, typically 1–4% APY for flexible USDT and 3–8% APY for fixed 7–90 day terms. Rates are floating and adjust daily based on platform lending demand.
On-Chain Earn: Delegate PoS assets (ETH, SOL, ATOM) to validators; the platform handles staking operations and distributes rewards daily at 06:00 UTC. Yields match protocol rates minus undisclosed platform fees.
Fixed Rate Loan supply: Lend USDT/USDC to margin borrowers at fixed rates for 7–180 day terms. Principal and interest pay at maturity; early redemption is not available.
Auto-Earn: Idle balances in the Funding Account automatically move to Flexible Easy Earn daily at 10:00 UTC. Opt-in feature with one-click redemption.
Risks: Earn products involve credit risk (counterparty default), platform risk (custodial), and yield volatility (rates fluctuate daily). Not insured; not equivalent to bank deposits.
Card
Availability: EEA and Switzerland only; issued as Mastercard debit. Virtual card available immediately after KYC; physical card ships after address verification.
Cashback and APR: Marketing claims up to 10% cashback and 8% APR on card balances. Actual rates vary by tier and are not guaranteed; terms subject to change.
Funding: Card draws from the Funding Account with up to three spend currencies (default priority: USDT → USDC → BTC). Transactions settle in EUR; crypto converts at authorization with FX and conversion fees applied.
Fees: ATM withdrawals above EUR 100/month incur 2% fee. FX and crypto conversion charges are not itemized separately; effective all-in cost ranges 1.5–3% versus mid-market rates.
Restrictions: Not available outside EEA/CH; U.S., U.K., and Asian users cannot access the card program.
Fees Breakdown
Spot
Base rates: Non-VIP spot trading starts at 0.1000% maker / 0.1000% taker for crypto-crypto pairs. Fiat-crypto pairs (EUR/BTC, USD/ETH) charge higher rates: 0.2000% taker / 0.1500% maker at the lowest tier.
VIP progression: Volume-based or asset-balance tiers reduce fees:
| VIP Level | 30-Day Spot Volume | Maker Fee | Taker Fee |
|---|---|---|---|
| VIP 0 (base) | < $1,000,000 | 0.1000% | 0.1000% |
| VIP 3 | ≥ $10,000,000 | 0.0625% | 0.0750% |
| VIP 5 | ≥ $50,000,000 | 0.0400% | 0.0500% |
| Supreme VIP | ≥ $100,000,000 | 0.0300% | 0.0450% |
MNT fee discount: Paying fees in MNT (Mantle token) applies an additional 25% discount to spot fees and 10% to futures fees. Example: VIP 3 maker fee of 0.0625% becomes 0.0469% when paid in MNT.
Futures
Perpetual fees: USDT and USDC perpetuals start at 0.0200% maker / 0.0550% taker. This rate beats most competitors except Binance (which offers 0.02%/0.04% with BNB discount).
VIP scaling:
| VIP Level | Maker Fee | Taker Fee |
|---|---|---|
| VIP 0 | 0.0200% | 0.0550% |
| VIP 3 | 0.0140% | 0.0350% |
| VIP 5 | 0.0100% | 0.0320% |
| Supreme VIP | 0.0000% | 0.0450% |
Maker rebates: VIP 6 achieves 0.0000% maker fees on perpetuals; undisclosed Pro/Market Maker tiers may receive negative fees (rebates) for providing liquidity.
Inverse perpetuals: Same fee structure as USDT perpetuals but denominated in BTC/ETH; fees deduct from position collateral.
Funding
Perpetual funding rates: Not a fee to Bybit; funding payments occur between long and short traders every 8 hours. Rates typically range from -0.01% to +0.01% (8-hour rate, equivalent to -1.095% to +1.095% annualized) but can spike to ±0.05% during extreme positioning.
Historical averages (Q4 2025):
- BTC/USDT perpetual: +0.0051% average 8-hour rate (+1.87% annualized cost to longs)
- ETH/USDT perpetual: +0.0039% average 8-hour rate (+1.43% annualized cost to longs)
Strategy implication: Funding costs/revenues are a hidden P&L component for multi-day positions; traders should monitor cumulative funding via API or the position panel.
Withdrawal
Crypto withdrawal fees: Fixed per-network rates, not percentage-based:
| Asset | Network | Fee | Minimum Withdrawal |
|---|---|---|---|
| BTC | BTC | ~0.0002–0.0005 BTC | 0.001 BTC |
| ETH | ERC-20 | ~0.005–0.01 ETH | 0.02 ETH |
| USDT | TRC-20 | 1 USDT | 10 USDT |
| USDT | ERC-20 | ~10–25 USDT | 10 USDT |
| USDT | Arbitrum | ~1 USDT | 10 USDT |
Fee optimization: Use TRC-20 for USDT withdrawals (1 USDT vs 10–25 USDT on ERC-20); use Arbitrum or Optimism for ETH to reduce gas costs.
Fiat withdrawal: Bank transfer fees vary by partner and region. SEPA withdrawals in the EU typically incur €0 platform fee but may include beneficiary bank charges. Card withdrawals are not supported; users must convert to crypto or use P2P to exit.
Discount Tiers
Volume-based qualification: VIP levels refresh daily at 07:00 UTC based on trailing 30-day trading volume OR asset balance, whichever qualifies for the higher tier.
Asset balance calculation: Total wallet balance across all accounts (spot, derivatives, earn) including staked assets in liquidity mining. Does not include unrealized P&L; uses marked-to-market valuations at daily snapshot time.
API trading volume limits: VIP 4 and above require ≤20% of volume from API trading to qualify. This prevents pure market-making bots from accessing retail VIP tiers without equivalent manual trading activity.
Table vs Binance / OKX / Bybit
| Exchange | Spot Maker (Base) | Spot Taker (Base) | Perp Maker (Base) | Perp Taker (Base) | Top Tier Spot | Top Tier Perp |
|---|---|---|---|---|---|---|
| Bybit | 0.1000% | 0.1000% | 0.0200% | 0.0550% | 0.0300% / 0.0450% | 0.0000% / 0.0450% |
| Binance | 0.1000% | 0.1000% | 0.0200% | 0.0500% | 0.0200% / 0.0400% | 0.0000% / 0.0170% |
| OKX | 0.0800% | 0.1000% | 0.0200% | 0.0500% | 0.0200% / 0.0350% | -0.0050% / 0.0200% |
Analysis: Bybit’s base perpetual taker fee (0.055%) is higher than Binance (0.05%) and OKX (0.05%) but competitive at VIP tiers. Spot fees are standard across all three exchanges at the base level. Binance offers the lowest top-tier taker fees with BNB discount; OKX provides maker rebates earlier in the VIP structure.
Is Bybit Safe
Bybit implements multi-signature cold storage, mandatory 2FA, monthly proof-of-reserves attestations, and optional withdrawal address whitelists. However, the platform operates with custodial control of private keys, no disclosed insurance coverage, and demonstrated vulnerability via the February 2025 $1.5 billion hack.
Security Architecture
Cold vs hot storage: The majority of user assets reside in offline cold wallets requiring multi-signature approval for fund movement. Hot wallets maintain operational liquidity for withdrawal processing with periodic replenishment from cold storage.
Multi-signature schemes: Undisclosed M-of-N threshold signatures govern cold wallet access. The February 2025 breach affected hot wallet infrastructure, suggesting insufficient approval controls or compromised signing keys on the hot-wallet layer.
HSM and MPC: Bybit has not publicly disclosed use of hardware security modules or multi-party computation for key management. This lack of transparency prevents independent assessment of cryptographic protection depth.
Custody
Legal ownership: User crypto deposits remain custodial under Bybit’s legal entities; users hold contractual claims rather than direct private key control. This creates counterparty credit risk if Bybit becomes insolvent or subject to asset seizure.
Segregation policy: Bybit states client assets are held separately from corporate funds. However, no independent audit report verifies operational segregation or confirms that commingling cannot occur during normal business operations.
Bankruptcy treatment: In the event of Bybit insolvency, crypto assets may be treated as general unsecured claims subject to local bankruptcy law. Users have no priority claim and would compete with other creditors for recovery.
Proof of Reserves
Attestation provider: Hacken conducts monthly proof-of-reserves audits using Merkle tree verification. The auditor confirms that on-chain wallet balances ≥ user liabilities for in-scope assets as of the snapshot date.
Verification process: Users can verify their account inclusion by comparing their balance hash against the published Merkle root via Bybit’s self-check tool. This cryptographically proves the user’s balance was included in the liability calculation.
Coverage scope: PoR reports cover BTC, ETH, USDT, USDC, and major altcoins but exclude some tokens and fiat-equivalent liabilities. Off-chain liabilities (vendor payables, legal obligations) are not included in reserve calculations.
Latest attestation: September 2025 PoR showed 100%+ reserve ratios for all in-scope assets. August 2025 report confirmed similar coverage post-February hack remediation.
Past Incidents
February 2025 wallet compromise: Attackers extracted approximately $1.5 billion in ETH from Bybit hot wallets. The platform paused withdrawals for 72 hours while securing additional liquidity from institutional lenders and treasury reserves.
Remediation timeline:
- Hour 0–4: Detection and withdrawal suspension
- Hour 4–24: Incident disclosure; communication via status page and announcement hub
- Hour 24–72: Capital raise and reserve replenishment from Bybit treasury and external credit lines
- Hour 72+: Withdrawal resumption; subsequent PoR attestations showed 100%+ coverage
Customer impact: No reported haircuts to user balances; all withdrawals processed normally after the 72-hour suspension. This suggests Bybit absorbed the entire loss through equity or borrowing.
Root cause: Bybit has not published a detailed post-mortem explaining the attack vector, whether it involved key compromise, social engineering, or smart contract vulnerability.
Operational Risk
Concentration risk: Bybit’s custodial model creates single-point-of-failure risk. Unlike decentralized protocols or multi-custodian structures, one successful breach can compromise all user funds.
Regulatory seizure risk: Government authorities in Dubai or other jurisdictions could freeze or seize Bybit’s crypto holdings, rendering user withdrawals impossible. The platform’s multi-jurisdictional structure may complicate asset recovery in such scenarios.
Management risk: CEO Ben Zhou and undisclosed executive team control operational security decisions. No published succession plan or decentralized governance exists to mitigate key-person risk.
Business continuity: The February 2025 incident demonstrated Bybit’s ability to source $1.5B in emergency liquidity within 72 hours. This suggests strong institutional relationships but also reveals dependence on external credit availability during crises.
Regulation & Legality
USA
Legal status: Bybit is not registered with the SEC, CFTC, or FinCEN and does not operate in the United States. The platform voluntarily blocks U.S. IP addresses and prohibits U.S. residents from creating accounts.
ToS restrictions: Terms of Service require users to confirm they are not U.S. residents during registration. Violations can result in account suspension, fund liquidation, or withdrawal denial.
VPN usage: Using a VPN to access Bybit from the U.S. is not federally illegal but breaches platform terms. If detected, Bybit may freeze the account pending compliance review, potentially blocking fund access.
Regulatory rationale: U.S. securities laws treat many crypto derivatives as unregistered securities or swaps. Bybit avoids U.S. market exposure to prevent SEC enforcement actions similar to those targeting BitMEX and Binance.
Tax implications: U.S. persons trading on Bybit via VPN remain subject to IRS reporting requirements. Gains are taxable; failure to report can trigger penalties. Bybit does not issue 1099 forms, requiring manual record-keeping.
EU
MiCAR compliance: Bybit obtained a MiCAR-compliant license in Austria (May 2025) and operates Bybit.eu for European users. The EU entity currently offers spot and spot margin trading; derivatives require a separate MiFID license pending approval.
Product restrictions: EU users cannot access perpetual futures, options, or high-leverage products on Bybit.eu until MiFID authorization is granted. Some traders access the global Bybit.com entity via non-EU residency declarations, creating compliance gray areas.
Country-specific blocks: France residents are fully blocked from both Bybit.com and Bybit.eu due to AMF regulatory stance. Germany, Netherlands, and other EU states allow Bybit.eu access with restricted product scope.
Consumer protection: MiCAR provides dispute resolution mechanisms and requires segregated client funds. However, crypto remains uninsured, and users bear custody risk if Bybit becomes insolvent.
Asia
UAE (Dubai and Abu Dhabi): Bybit holds a full Virtual Asset Platform Operator License from the UAE Securities and Commodities Authority (SCA), making it the first federally licensed crypto exchange in the Emirates. The license covers trading, brokerage, custody, and fiat conversion services nationwide.
Dubai VARA: Bybit also holds provisional VASP approval from Dubai’s Virtual Assets Regulatory Authority. This dual licensing structure allows operations across both VARA-jurisdictions (Dubai) and SCA-jurisdictions (mainland UAE).
India: Bybit registered with Indian authorities in February 2025 after paying a $1 million compliance fine. The platform resumed full trading operations for Indian residents following a brief service suspension in late 2024.
Singapore: Bybit does not serve Singapore residents due to MAS licensing requirements. Singapore users cannot register or trade on the platform.
Hong Kong: Hong Kong residents are blocked from Bybit.com. The SFC’s retail crypto licensing regime requires separate authorization that Bybit has not pursued.
Restricted Regions
Full block list (partial; refer to official ToS for complete list):
- United States
- United Kingdom
- Canada
- Singapore
- Hong Kong
- Mainland China
- France
- North Korea, Iran, Syria, Cuba (OFAC sanctions)
Enforcement mechanisms: IP-based geo-blocking, KYC document verification, withdrawal address screening against OFAC SDN lists. Users providing restricted-country documents during KYC face automatic rejection.
VPN circumvention risks: Accessing Bybit from restricted regions via VPN violates ToS and may trigger account freeze. Funds can be held pending compliance review; in some cases, Bybit has liquidated balances or returned them minus administrative fees.
Jurisdiction Risks
Regulatory arbitrage: Bybit’s Dubai licensing provides a permissive operating environment but lacks the institutional oversight depth of U.S. (SEC/CFTC) or EU (MiCAR/MiFID) frameworks. Users trade off regulatory protection for product access and lower barriers to entry.
Future enforcement: As global crypto regulation tightens, exchanges operating from permissive jurisdictions may face pressure to comply with G20 standards or risk being blocked by major financial systems. Bybit’s long-term viability depends on maintaining multi-jurisdictional licenses as regulations converge.
Asset recovery complexity: In the event of dispute, theft, or insolvency, users must navigate Dubai commercial courts or alternative dispute resolution mechanisms. Enforcement of judgments against a Dubai-based entity from foreign jurisdictions can be slow and expensive.
User Experience
Onboarding
Registration flow: Email or phone registration with one-time verification code takes under 2 minutes. Users set a password (minimum 8 characters, requiring uppercase, lowercase, and number) and agree to ToS.
KYC requirements: Mandatory identity verification before any trading or fiat deposits. Standard KYC (Level 1) requires government-issued ID (passport, national ID, driver’s license) and liveness check; typically approves within 5 minutes but can extend to 24 hours during peak periods.
Advanced KYC (Level 2): Proof of address (utility bill, bank statement ≤3 months old) raises daily withdrawal limits from 1,000,000 USDT to 2,000,000 USDT. Review time ranges from minutes to 24 hours.
Friction points: Users from ambiguous jurisdictions (e.g., territorial disputes, recent regulatory changes) may face extended EDD (Enhanced Due Diligence) reviews or account rejections. No appeal process is publicly documented for KYC denials.
Navigation
Menu structure: Top bar organizes functions into Markets, Trade, Derivatives, Earn, Buy Crypto, Wallet, with a profile dropdown for Account, Security, API, and Sub-accounts.
Advanced trading interface: The Derivatives → Trading terminal loads with TradingView chart (center), order book (left), order entry (right), and open orders/positions (bottom panel). Users can collapse panels to maximize chart space or switch to ladder view for one-click trading.
Mobile parity: iOS and Android apps mirror core functions (trading, deposits, withdrawals, security settings) but lack some advanced features (CSV export, API key management, detailed tax reporting). Mobile order entry uses a simplified layout with preset leverage and order size buttons.
Tools
Position calculator: Pre-trade calculator shows liquidation price, required margin, ROE, and PnL based on entry price, size, and leverage. Accessible from order entry panel; updates dynamically as parameters change.
TradingView integration: Full TradingView charting with 100+ indicators, drawing tools, and saved layouts. Users can publish chart ideas to TradingView community but cannot execute trades directly from TradingView (must use Bybit terminal).
API and SDK: REST v5 API with 600 req/5s IP limit; WebSocket market data with 1000-level depth. Official SDKs for Python, Go, Java, .NET simplify integration for algorithmic traders.
Missing tools: No portfolio rebalancing automation, no advanced options strategy builder (spreads, butterflies), no TWAP/iceberg order types. Systematic traders must build these client-side.
Learning Curve
Beginner-friendliness: The One-Click Buy interface and Convert tool provide simplified entry points for first-time users. However, the advanced terminal’s multi-panel layout and derivatives-first product line create steep learning curve for spot-only traders migrating from Coinbase or Kraken.
Educational resources: Help Center contains 500+ articles covering registration, trading mechanics, fees, and security. Video tutorials and webinars are limited; most content is text-based FAQs.
Demo trading: Bybit offers a testnet environment for API developers but no paper-trading mode for retail users practicing on the live interface. New traders risk capital immediately when experimenting with order types and leverage.
Mobile App Review
Interface
Design language: The mobile app uses a dark-theme card-based layout with bottom navigation for Markets, Trading, Assets, Derivatives, and More. Home screen displays portfolio balance, trending coins, and quick-access buttons for deposit, buy crypto, and transfer.
Order entry: Tap a trading pair to open the order screen with simplified buy/sell buttons, leverage slider, and order type selector (market, limit, stop). Position management shows open positions with one-tap close or modify options.
Chart integration: Built-in TradingView charts support pinch-zoom, indicator overlays, and drawing tools. Chart layout is more constrained than web due to screen size; multi-chart layouts are not supported.
Trading
Order types: Market, limit, stop-limit, trailing stop, and reduce-only orders are accessible on mobile. Post-only and OCO require navigating to advanced settings within the order panel.
Execution speed: Order placement typically completes within 1–2 seconds on 4G/5G networks. Poor connectivity queues orders for submission once connection restores; no explicit offline-mode indication warns users of delays.
Position monitoring: Real-time P&L, margin ratio, and liquidation price display in the Positions tab. Push notifications alert users when positions approach liquidation thresholds (configurable in settings).
Stability
Crash rate: Android app listing shows 4.5/5 stars with 10M+ downloads; recent reviews report occasional freezes during high-volatility events. iOS version shows similar ratings with better stability on newer devices (iPhone 12+).
Update frequency: The app receives updates every 2–4 weeks with bug fixes, UI tweaks, and new feature rollouts (e.g., Card widgets, Copy Trading panels). Mandatory updates occasionally block app access until users install the latest version.
Connectivity handling: WebSocket reconnection logic typically restores data feeds within 5–10 seconds after network drop. However, pending orders may not re-sync immediately, creating risk that traders believe orders canceled when they remain active.
Features
Full feature set: Spot, derivatives, copy trading, earn products, P2P trading, deposits, and withdrawals all function on mobile. API key management and detailed transaction history CSV exports require web access.
Security controls: Biometric unlock (Face ID, Touch ID, fingerprint), 2FA prompts for withdrawals, device authorization, and session management are available in-app. Address whitelist configuration also accessible via mobile.
Widgets and notifications: Android and iOS widgets show portfolio balance and top movers. Push notifications cover price alerts, order fills, funding reminders, system maintenance, and promotional campaigns (opt-in required).
Mobile App Considerations
Screen real estate: Small devices (iPhone SE, budget Android phones) show cramped order entry panels and truncated order book displays. Tablet mode on iPad improves layout but still lacks desktop-class multi-panel flexibility.
Latency: Mobile app execution latency ranges 100–300ms higher than web API due to additional app-layer processing. High-frequency traders should avoid mobile for latency-sensitive strategies.
Data usage: Streaming WebSocket market data consumes approximately 50–150 MB/hour depending on number of subscribed markets. Users on metered data plans should monitor usage or restrict background data in app settings.
Customer Support
Channels
Live chat: 24/7 in-app and web-based chat with human agents (claimed; actual response may route through AI triage first). Language support includes English, Simplified Chinese, Traditional Chinese, Spanish, Russian, and others matching the platform’s localization set.
Ticket system: Help Center ticket submission for account-specific issues requiring documentation (e.g., KYC disputes, withdrawal holds, security incidents). Tickets generate a reference number and email thread for follow-up.
No phone support: Bybit does not publish a customer service phone number. All inquiries route through chat or tickets, which delays resolution for users preferring voice communication.
Community channels: Unofficial Telegram groups and Reddit communities (r/Bybit) provide peer support but are not staffed by official Bybit representatives. Exercise caution; scammers impersonate support agents in these channels.
Speed
Live chat response time: Initial response typically occurs within 2–5 minutes during Asian business hours (02:00–10:00 UTC), 5–15 minutes during European hours, and 10–30 minutes during weekends.
Resolution time: Simple inquiries (fee questions, deposit confirmations) resolve within one chat session (~10–20 minutes). Complex issues (KYC rejections, withdrawal holds, account restrictions) can extend 24–48 hours pending compliance or technical review.
SLA gaps: Bybit does not publish formal SLA commitments for response or resolution times. Users experiencing time-sensitive issues (e.g., liquidation risk due to frozen withdrawal) have no escalation guarantee.
Quality
Agent knowledge: Front-line chat agents handle routine questions effectively (fees, deposit addresses, basic troubleshooting) but often escalate technical or compliance issues without providing intermediate solutions.
Script-based responses: Many chat interactions begin with templated responses that may not address the specific question. Users should restate issues clearly and request escalation if initial responses are generic.
Post-incident support: Following the February 2025 hack, support quality declined temporarily due to volume surge; response times extended to several hours and some users reported incomplete answers. Quality has since normalized.
Community
Reddit (r/Bybit): ~15K members with mixed sentiment; posts cover platform issues, fee questions, and withdrawal delays. Moderators are not Bybit employees; official responses are rare.
Telegram: Multiple regional groups (English, Russian, Chinese) with 10K–50K members. High scam risk; verify any “support” contact independently before sharing account information.
Twitter/X (@Bybit_Official): ~4M followers; primarily promotional content with occasional system status updates. Customer support inquiries receive DM prompts to use official channels (rarely resolved via social media).
Bybit vs Competitors
Bybit vs Binance
Verdict: Binance offers deeper BTC/ETH liquidity and lower fees with BNB discount, making it the top choice for high-volume spot and futures traders. Bybit excels in altcoin perpetual breadth (800+ vs 500+) and may provide better execution on long-tail derivatives. Both platforms carry custody risk and regulatory uncertainty.
Bybit vs OKX
Verdict: OKX provides superior options liquidity, more sophisticated trading bots, and earlier maker rebates, making it preferable for multi-strategy quant traders. Bybit offers broader altcoin perpetual coverage and simpler fee structures, benefiting directional derivatives traders focused on long-tail pairs.
Bybit vs Coinbase
Verdict: Coinbase suits U.S. residents and institutions prioritizing regulatory compliance and insured custody. Bybit serves international derivatives traders seeking high leverage, broad perpetual coverage, and low fees unavailable on U.S. platforms.
Table Comparison
| Feature | Bybit | Binance | OKX | Coinbase |
|---|---|---|---|---|
| Derivatives liquidity | High | Highest | High | Low |
| Altcoin perpetuals | 800+ | ~500 | ~400 | <50 |
| Spot liquidity | Medium | Highest | High | Medium (U.S.) |
| Base perp fees | 0.02% / 0.055% | 0.02% / 0.05% | 0.02% / 0.05% | N/A |
| Max leverage | 125x | 125x | 125x | 20x |
| U.S. legal | No | No | No | Yes |
| Proof of reserves | Monthly | Quarterly | Quarterly | N/A (custodial) |
| Options | Limited | No | Deep | No |
| API sophistication | High | High | High | Medium |
Who Bybit Is Best For
Derivatives Traders
Ideal fit: Professional futures and perpetuals traders requiring:
- Deep BTC/ETH liquidity (sub-0.02% slippage on $1M orders during peak hours)
- Broad altcoin perpetual coverage (800+ pairs vs Binance’s ~500)
- Portfolio margin and advanced order types (trailing stops, reduce-only, OCO)
- Low maker fees (0.02% base, scaling to 0.00% at VIP 6)
Use case: Multi-timeframe swing traders holding leveraged positions for days or weeks benefit from competitive funding rates and 8-hour settlement cycles. Scalpers executing 10+ trades daily capture maker rebates at high VIP tiers.
Active Traders
Profile: Traders executing 5–50 trades daily across spot and derivatives, accumulating $500K–10M in monthly volume. These users reach VIP 3–5, unlocking:
- Spot fees: 0.0625%–0.0500% maker / 0.0750%–0.0500% taker
- Perp fees: 0.0140%–0.0100% maker / 0.0350%–0.0320% taker
Advantage vs competitors: Bybit’s volume-based VIP system rewards organic trading activity without requiring native token holdings (unlike Binance’s BNB discount model). This benefits traders unwilling to hold exchange tokens as part of their capital structure.
Altcoin Traders
Long-tail exposure: Bybit lists 350+ spot assets and 800+ perpetuals, including Innovation Zone tokens and Pre-Market contracts for unreleased projects. This breadth exceeds Binance and OKX for emerging DeFi and gaming tokens.
Risk disclosure: Innovation Zone and Pre-Market pairs show 1–5% spreads and $100K–1M liquidity. Suitable for speculative position entry but inadequate for large-size institutional execution. Slippage can reach 5–15% on $100K+ market orders in illiquid altcoin perpetuals.
Beginners
Accessibility: One-Click Buy and Convert tools provide simplified entry for first-time crypto users. However, the platform’s derivatives-first design and complex fee structures create steeper learning curves than beginner-focused platforms (Coinbase, Kraken).
Hidden costs: Beginners using One-Click Buy pay 1.2–3.2% all-in spreads (including provider fees) versus 0.10% on the advanced interface. This convenience premium can erode returns for users making frequent small purchases.
High-leverage risks: The platform defaults to 10–20x leverage for new perpetual traders. Inexperienced users risk rapid liquidation during normal market volatility; Bybit provides no mandatory leverage education or graduated access controls.
Recommendation: Beginners should complete KYC, deposit a small test amount (<$500), and practice spot trading with limit orders before accessing derivatives. Enable withdrawal address whitelist and 2FA immediately after registration.
Institutions
Prime services: Bybit offers RFQ (Request for Quote) block trading for sizes exceeding order book capacity, connecting institutional flow with liquidity providers for off-book execution. Minimum ticket sizes and eligibility criteria are not publicly disclosed.
API and sub-accounts: Institutions can create sub-accounts with isolated balances, dedicated API keys, and granular permission scopes (read-only, trading, withdrawal). IP allowlists and HMAC/RSA key signing support secure programmatic trading.
Limitations: No FIX protocol connectivity (API-only); no disclosed institutional insurance or OTC settlement services beyond RFQ. Custody remains in-house (not third-party prime broker model), concentrating counterparty risk.
Risks of Using Bybit
Regulatory
Licensing gaps: Bybit operates with UAE SCA and Dubai VARA licenses but lacks registration in major markets (U.S., U.K., Canada, Singapore). This creates jurisdictional uncertainty if users reside in gray-area regions or if future enforcement targets offshore platforms.
Voluntary geo-blocking: The platform’s decision to block U.S., U.K., and other G7 residents suggests anticipation of regulatory crackdowns. Users in non-blocked regions could face abrupt service termination if Bybit exits additional jurisdictions.
MiCAR/MiFID delays: EU users on Bybit.eu cannot access derivatives pending MiFID license approval. Prolonged regulatory delays or denial could force Bybit to shut down EU operations, stranding user balances during transition periods.
Risk tier: High. Offshore licensing with voluntary market exits indicates proactive regulatory avoidance rather than full compliance strategy.
Custody
Single-point-of-failure: Bybit controls all private keys via in-house multi-signature schemes. Unlike decentralized protocols or multi-custodian arrangements, one breach (as demonstrated in February 2025) can compromise all user funds.
No insurance: Crypto deposits are not covered by government deposit insurance or disclosed private crime policies. The insurance fund covers liquidation losses on derivatives but does not protect against exchange-level theft or insolvency.
Bankruptcy exposure: In a Bybit insolvency event, users hold unsecured contractual claims rather than direct ownership of on-chain assets. Recovery depends on local bankruptcy law (Dubai jurisdiction) and competes with operational creditors.
Risk tier: High. The February 2025 $1.5B hack and reliance on uninsured custody creates measurable loss probability for multi-year holding periods.
Liquidity
Tiered market depth: BTC/ETH perpetuals maintain institutional-grade liquidity ($100M+ within 0.5% of mid-price). However, altcoin perpetuals show fragmented depth ($1–20M), and Innovation Zone pairs can experience 5–15% slippage on $100K+ orders.
Funding rate volatility: During extreme market events (March 2024 BTC rally, August 2024 liquidation cascade), perpetual funding rates spiked to ±0.05% (8-hour), imposing unexpected carry costs on directional positions.
Withdrawal queues: The February 2025 incident paused withdrawals for 72 hours. While resolved without haircuts, future liquidity crises could delay access to funds during critical market windows.
Risk tier: Medium. Core perpetual liquidity is adequate for retail/small institutional flow, but tail-risk events can disrupt access.
Derivatives Risk
Liquidation cascades: High leverage (up to 125x) and tiered maintenance margins create risk of rapid position closure during volatile price swings. Flash crashes of 10–20% can liquidate 100x-leveraged positions within seconds.
Auto-deleveraging (ADL): If the insurance fund depletes, profitable opposing positions are automatically closed to cover liquidation losses. ADL events are rare but occurred during the March 2020 COVID crash and August 2024 altcoin liquidations on competing platforms.
Funding rate carry: Long-biased positions on BTC/ETH perpetuals paid approximately +1.87% annualized funding in Q4 2025. Multi-week holds erode P&L; traders must factor funding into breakeven calculations.
Complexity risk: Novice users selecting default 20x leverage without understanding maintenance margins face high probability of liquidation during normal 5–10% intraday moves.
Risk tier: High for leveraged users; Low for spot-only accounts.
Exchange Risk
Operational resilience: The February 2025 hack tested Bybit’s crisis response; the platform restored services within 72 hours and maintained 100%+ reserves. This demonstrates business continuity capability but also reveals exploit surface.
Key-person risk: CEO Ben Zhou and undisclosed executive team control operational and security decisions. No published succession plan or decentralized governance mitigates key-person departure or incapacitation.
Regulatory exit risk: If major jurisdictions ban Bybit or seize assets, the platform may liquidate positions or impose withdrawal restrictions. Users in ambiguous jurisdictions should maintain withdraw-on-demand readiness.
Competitor comparison: Bybit’s risk profile resembles OKX and Binance (centralized custody, offshore