WEEX Exchange Due Diligence: Custody, Licensing and Withdrawal Risk
A centralized exchange controls deposited assets until withdrawal completes.
License logos, sponsorships and proof-of-reserve snapshots do not establish full solvency or customer protection.
Key takeaways
Identify the legal entity. Terms and jurisdiction determine possible recourse.
Verify licenses at the regulator. Registration may cover limited activities.
Derivatives create liquidation exposure. Leverage, mark price and insurance rules matter.
Test the exit. A screen balance is not self-custodied value.
A safer evaluation
Confirm the official domain, complete required verification, deposit a small amount, trade once and withdraw. Record fees, processing time and any support intervention.
Reserve evidence
Check asset addresses, scope, auditor or verifier, snapshot date and whether customer liabilities are included. Assets without obligations cannot prove one-to-one coverage.
Trading risk
Inspect real depth at your order size, funding, liquidation calculation and downtime policy. Avoid leaving long-term holdings on a venue used only for execution.
Decision checklist
Verify current official documentation, contracts or legal entities, administrator permissions, fees, liquidity and the full exit path. Test the smallest practical transaction and record what happens when an interface, oracle, bridge, operator or counterparty fails.
Keep a dated baseline of addresses, reserves or collateral, governance roles and normal withdrawal results. Recheck it after upgrades or incidents. An audit, license application, partnership or TVL number answers only one part of the risk.
Before increasing exposure, define an observable stop condition: a collateral deviation, missed withdrawal, governance change, loss of market depth or unsupported software version. Decide the response in advance and retain enough native gas and independent wallet access to execute it without relying on customer support.