Phemex Exchange Review

Phemex is a top-5 futures trading exchange that provides traders of all levels with a professional trading platform.

About

Phemex is a  top-5 futures trading exchange that provides traders of all levels with a professional trading platform. The platform boasts an impressive global user base with 5 million users from over 200 countries. Phemex offers a robust trading platform and registers 10 billion USD in daily trading volume. Phemex is well known for its diverse and high-quality pairs, with over 200 contract trading pairs and over 200 spot trading pairs. On Phemex, proficient traders can benefit from leverages up to 100x with contract trading pairs, while newcomers enjoy a smooth start with industry-leading low credit card fees and a grid trading bot feature that automatically executes buy & sell orders at pre-set prices. Phemex further prides itself on its unparalleled transaction speed and can process 300,000 transactions per second.

Phemex is a semi-centralized exchange founded with the goal of bringing centralized features such as trust to the somewhat chaotic crypto world. The exchange’s founders drew on their knowledge of traditional finance and learned how to build a reliable and efficient trading platform.To address the shortcomings of traditional finance, the founders thought of a new and fair financial paradigm where equality is the name of the game, and everyone can have access to the same opportunities and freedoms.

Phemex’s founding team embraced blockchain technology to support their vision of a reimagined financial system. The team quickly noticed that while crypto celebrates the ideals of free finance and individual sovereignty, platforms lacked “maturity.” Phemex was, therefore, born based on the ideals of the crypto ecosystem but with added security, trust and transparency. 

Security is at the core of the realm of crypto, and Phemex delivers. Using an innovative cold wallet system, Phemex ensures the safety of users’ funds at all times. Additionally, any user can take advantage of the Proof of Reserves tool on Phemex to verify the secure storage of their assets.

Trading on Phemex

• Contract Trading;
• Spot Trading; and 
• Copy Trading (Trading Bots)

Phemex Fee Structure

A centralized exchange has two main types of fees: maker fees and taker fees.

• Maker fee: when adding liquidity to the order book, you are deemed as a market “maker.”
• Taker fee: when you take liquidity out of the order book, you are deemed a market “taker.”

In most instances, exchanges charge higher taker than maker fees to incentivize traders to add liquidity rather than take it away. Phemex follows this convention for its contract markets but charges a standard fee for makers and takers in their spot markets – this gives Phemex an edge over its competitors.

Phemex fees are as follows:

• Spot markets: 0.1% maker and 0.1% taker fees
• Contract markets: 0.01% maker and 0.06% taker fees.
• Withdrawal fees: Phemex withdrawal fees are low but differ for each coin. A complete list of fees is available on the “Fees & Conditions” page.

With Phemex’s VIP Program, users receive discounts on fees depending on their VIP level, with the highest level VIPs able to essentially trade for free.

Phemex VIP Program

Traders can apply for the Phemex VIP program to enjoy rewards and discounts on trading fees. VIP benefits include:

• Fee discounts: pay lower trading fees;
• Account priority;
• Unlimited Sub-Accounts;
• 1-on-1 Account Managing services;
• Exclusive rewards and bonuses;
• Product suggestion priority,
• Phemex customized merchandise and gifts.

Phemex recently introduced a comprehensive update to its VIP program with new classification indicators.

Contract Trading

One of Phemex’s largest set of markets is “contract” trades. Contract trades are perpetual futures markets that allow traders to trade the price of crypto without having to actually own or hold the underlying asset.

Contract markets are available in USDT-M Perpetual, USD-M Perpetual, and COIN-M Perpetual, meaning traders can use either USD, USDT, or cryptocurrencies as collateral for margins. Phemex offers 225 contract pairs, with more being listed regularly. In COIN-M denominated market, traders can only use Bitcoin (BTC) or Ethereum (ETH).

Fees:

• Maker fee: 0.01%
• Taker fee: 0.06%

Phemex contracts offer 100x leverage on many assets, including BTC and ETH.  

Spot Trading

Spot Trading on Phemex gives traders access to 218 token pairs with up to 5x leverage.

Fees:

• Maker fee: 0.1%
• Taker fee: 0.1%

NOTE: Phemex provides a comprehensive fee structure on its “Fee Rate” page.

Copy Trading and Trading Bots

Traders can set up bots that automatically “copy” a trade of a certain “top” trader on the Phemex platform. Phemex provides a list of “top traders'' who rank highest so that users can choose a dependable trader. Phemex deems a “top trader” as one that has a proven record of a PNL sheet of over $20,000 and an ROI (return on investments) above 200% over the last 30 days.

Using Phemex’s trading bots is easy. Traders first select a trader they want to copy on the “Copy Trading” page. Traders are limited to 100 copy users to mitigate any market price impact. The “Copy Trading” interface provides statistics on trader performance and includes their total balance, over PNL, and their monthly PNL. Users can also activate futures grid trading bots to automate their trading strategies and have the system automatically take profits without requiring constant manual execution.

Phemex Earn

Phemex offers users the opportunity to earn interest. Phemex Earn is an integrated platform that combines saving accounts, a launchpool, and other financial services to give users the opportunity to earn high returns on their crypto. On the “Earn Crypto” interface, users can select an option best suited to them, subscribe to the service, and then track their earnings and progress in “My Earnings.”

Users can earn APYs (Annual Percentage Yields) ranging from 0.35% to 4%, depending on how long they lock their assets. Users can choose either a “flexible deposit” or a “fixed” lockup period. Flexible deposits allow users to withdraw their funds at any time, and a “fixed” lockup period holds funds for either seven (7) or fourteen (14) days. 14-day fixed lock-ups earn the best APYs.

Users can choose from a range of crypto assets: 

 

Phemex also offers an Earnings calculator:

Buy Crypto on Phemex

Acquiring crypto on the Phemex exchange is simple. The exchange offers a quick and easy one-click buy and sell process, with payment in over 80 different fiat currencies. Users can only buy USDT with credit cards.

 

Users can also buy the following crypto through a fiat balance on the platform: USDT, BTC, USDC, and ETH.

Programs 

Phemex has a range of programs and incentives on offer for its users.

Collaborator Program:

Through the Collaborator Program, Phemex strengthens and aligns important relationships with key partners such as influencer affiliates.

Phemex believes that the platform and its affiliates should work the same team toward the same goals. To that end, the exchange brings Phemex Collaborators onto the same team by sharing platform ownership.

Through this ownership structure, significant contributors are aligned and incentivized to prioritize the growth and success of Phemex.

Benefits of the Collaborator Program include:

• Earn real-time through a commission system that truly pays out;
• Earn up to 50% commission of referrals;
• Hold vePT and boost your commission to 60%; and
• Enjoy an additional 10% rebate bonus from sub-affiliates.

Broker Program:

The Phemex Broker Program empowers brokers with an all-in-one platform and profitable incentives. By joining the Program, brokers will enjoy the following advantages:

• Industry-leading commissions: brokers can earn up to 50% commissions based on their users’ trading volume of Phemex.
• Smooth onboarding: brokers can onboard users and earn commission as soon as they receive their Broker ID.
• Cross-Promotional Opportunities: joining the program allows brokers access to new users by tapping into the exchange network.
• 1-on-1 Dedicated Support: Brokers receive immediate customer service at all times, and top priority is given to their concerns.

Brand Ideology

Phemex prides itself on its 3T ideology:

• Trustworthy: Since its establishment, user funds have never been hacked or placed at risk, and the exchange maintains an incident-free record.
• Transparency: Phemex is the first exchange to offer Proof-of-Solvency, which they update on the 25th of each month. Users can also confirm the secure storage of assets and liquidity with Phemex’s Proof-of-Reserves.
• Together: Phemex is an ever-growing community, estimating that over 21,000 members will hold its PSP within the first few months of its inception.

The First Semi-Centralized Exchange

After Phemex’s founders looked at the benefits of a centralized exchange, they noticed that including features of decentralized finance (DeFi) could greatly benefit the user. In this way, Phemex is establishing itself as the First Semi-Centralized Exchange.

The exchange identified the global need for traders’ autonomy and financial freedom, and after introducing Phemex, it is giving them that which they needed so desperately.

Phemex strives to listen to its users and have their voices heard. As such, Phemex is pioneering the integration of decentralized decision-making with the efficiency of centralized platforms with its Web 3.0 project – Phemexia.

Through this hybrid approach, users can benefit from the convenience and liquidity characteristic of a CEX, all while actively engaging in the autonomous governance offered by a DEX. 

Phemexia: The Web 3.0 Colony

Phemex is stepping beyond the bounds of traditional centralized exchanges by introducing its Web 3.0 ecosystem, Phemexia, including a utility token, a governance token, and an identity bound-NFT. 

In the near future, users will be able to stake their platform token for governance tokens and wield voting rights in the Phemex DAO thereby participating in decision-making processes related to platform operations, growth strategies, partnerships, and treasury management. 

At its core, Phemexia implements a decentralized governance structure to empower a growing group of builders, partners and stakeholders to make key decisions on platform activity. According to Phemex, Phemexia is a “decentralized society that liberates, empowers and increases the wealth of its members.”

Elements of Phemexia

Phemex’s Web 3.0 ecosystem, Phemexia, consists of three main elements:

• The Phemex token (PT) – a utility token;
• The Phemex Soul Pass (PSP) – a non-transferable NFT; and
• VePT – a governance token accumulated by staking PT.

Phemex Soul Pass (PSP)

The Phemex Soul Pass (PSP) is the gateway and access to the Phemexia ecosystem and is a non-transferable NFT that serves as a user’s identity in Phemexia. PSP is based on Ethereum co-founder Vitalik Buterin’s idea of “soulbound NFTs”. The PSP remains in a user’s wallet and acts like an “on-chain passport.” According to the exchange, the PSP will grant special privileges within the ecosystem and will also hold on-chain achievements and store credentials based on ecosystem contributions.

Phemex Token (PT) and VePT

Phemex issued its own platform utility token – Phemex Token (PT) on November 30, 2023.

PT is an on-chain ERC20 token and confers various benefits and use cases, such as covering trading, gas, deposit, and withdrawal fees on Phemex.  Since PT is Phemex’s utility token and represents ownership of Phemex, users can stake it in return for vePT (vote escrow Phemex Token) to actively participate in decentralized platform governance.

 

vePT holders enjoy added benefits, including lucrative staking yields, fee discounts, trading bounties and other trading rewards. 

The Phemex Token takes three forms, each with different characteristics:

• xPT: Pre-mint token, metadata on the PSP, used to convert PT on a 1:1 basis during TGE
• PT: Transferable utility token used for staking, trading, and liquidity provision. 10% of the supply is converted from xPT and can be staked for vePT. This is an ERC20 token, transferable on the open market.
• vePT: vePT is a vote escrow governance token used for DAO governance and voting, staking yield, and trading rewards. vePT is obtained by staking PT for a specific time.

PT Staking 

Phemex commits to allocating 0.01% of the daily USDT contract trading volume towards the repurchase of PT, distributing it as staking rewards to all vePT holders. Starting from November 30th, PT Staking became accessible, offering numerous advantages for traders seeking additional returns. Here's why you should consider PT Staking:

• Stable Earnings: Staking PT ensures a consistent Annual Percentage Rate of up to 1000% (APR), thereby enhancing the value of its holders' assets.
• Flexibility: Phemex provides a range of staking term options, catering to the diverse needs of different users.
• Security and Trust: PT staking operates through smart contracts and is fully integrated into the Optimism network. This ensures a high level of transparency and security, minimizing the risk of asset misuse. Phemex guarantees a secure environment for PT staking.

Phemex DAO

The Phemex DAO will be the platform’s decentralized communal decision-making mechanism. After the launch of the Phemex Token, 40% of the token supply and the remaining tokens from pre-mining will be sent to the DAO treasury to be managed by DAO members.

Phemex’s governance structure will be decentralized and community-driven. Decision-making power is distributed between vePT token holders, working groups, and core contributors. Phemex will be managed by four working groups focused on operation, treasury management, growth and partnerships.

The Phemex Web3 Whitepaper provides full details on the Web 3.0 ecosystem.

 

Who Can Access Phemex?

Phemex supports users from over 200 countries but is not available in every jurisdiction.

Restricted countries include the United States of America, United Kingdom, Canada, Cuba, Crimea, Sevastopol, Iraq, Yemen, Iran, Syria, North Korea, South Korea, Sudan, China, Hong Kong, Republic of Seychelles, and Bermuda.

Security Review

Phemex maintains strict security procedures. In addition to its semi-centralised model, the exchange places great emphasis on its wallet, system, user account, and trading engine safety.

• Wallet Security: Phemex designed and implemented a Hierarchical Deterministic Cold Wallet System which assigns separate cold wallet deposit addresses to each user. All deposits are periodically gathered in the company’s multi-sig cold wallet via offline signature. The exchange also keeps 100% of user funds in reserve at all times and has released More News