Dear Matrixport users,
At block height 12,965,000, or approximately 2021-08-05 11:55 (UTC), the Ethereum (ETH) blockchain is scheduled to undergo the London Hard Fork.
In the event that the hard fork might result in an additional token, Matrixport has taken the following steps to reduce the trading risks brought about by price volatility during the hard fork as per the following:
1.ETH Deposits & Withdrawals
Matrixport will suspend ETH and ERC-20 tokens deposits and withdrawals at approximately 2021-08-05 11:00 (UTC). Please ensure that you leave sufficient time for your ETH and ERC-20 tokens transfers to be fully processed prior to the above time. We will handle all technical requirements for users holding ETH and ERC-20 tokens on Matrixport.
2.Regarding the ETH Hard Fork
The two likely scenarios to occur with the Ethereum (ETH) London mainnet activation are:
Scenario A:
No new token is created. Matrixport will then resume ETH and ERC-20 tokens deposits and withdrawals as soon as possible.
Scenario B:
The chain splits into two competing chains and a new token is created. Matrixport will credit users with ETH from the chain with the most work done. We will then also credit users with the token from the minority chain at a ratio of 1:1 based on the snapshot of ETH balances at block height 12,965,000, or approximately 2021-08-05 11:55 (UTC) as stated above. Further details regarding this distribution will be stated in a separate announcement.
3.Convert & OTC Portal
ETH trading on the Convert & OTC Portal will continue unaffected.
4.Financial Services
4.1 Fixed income and Flexi Saving:
During the hard fork, the purchase and redemption of fixed income or Flexis saving products are temporarily suspended. After the hard fork, Matrixport helps clients to auto-renew the investment, and the new token（if any） generated from the fork is expected to be returned within 65 days (the new token will have no investment proceeds).
4.2 DeFi:
If ETH undergoes a hard fork upgrade, Matrixport will support the hard fork during which ETH products will not generate profits. After the hard fork, Matrixport helps clients to auto-renew the investment, and the new token generated from the fork is expected to be returned within 65 days (the new token will have no investment proceeds).
4.3 Leveraged bull/bear Products:
During the fork, the sale of ETH-related leveraged products will be temporarily suspended. If there is a balance in your account, clients can cover their positions. If new fork tokens are generated, the new fork tokens will be redeemed within 65 days after the hard fork. During the fork period, the price of ETH may fluctuate significantly, which might trigger the liquidation; and the low liquidity of the forked tokens may result in an extremely low liquidation price. Clients who are concerned about this risk are advised to settle and redeem their margin ETH before 18:00 (GMT+8) on August 5, 2021, Singapore time. The closing of leveraged positions will be based on the upgraded new chain. Customers should close or cover positions in advance to prevent risks.
4.4 Loan
If ETH undergoes a hard fork upgrade, Matrixport will temporarily suspend the ETH crypto-backed lending business （including loan drawdown, repayment, and ETH margin top-up from 18:00 on August 5, 2021 (GMT+8), Singapore time. During the fork, the collateral price may fluctuate drastically, which might trigger the liquidation; Besides, If new fork tokens are generated, the difficulty to estimate the trading support time for forked tokens and their relatively low trading volume on major exchange platforms might result in an extremely low liquidation price. Customers who are worried about this risk are advised to top up more collateral to avoid potential market risk before 12:00 on August 5, 2021 (GMT+8) Singapore time. The closing of the loan will be based on the upgraded new chain. Customers should close or cover the position in advance to prevent risks.
4.5 Smart Trend
During a hard fork, ETH related smart trend products will be suspended. If new fork tokens are generated, they will be redeemed within 65 days after the fork.
4.6 Other
If a hard fork upgrade occurs, it will not affect the product renewal, please rest assured. In addition, if the clients’ assets on the Matrixport contain ETH, the new fork tokens (if any) will be redeemed within 65 days after the fork.
Matrixport will continue to maintain the security of your assets and thank you for your continued support.
Matrixport Team
August 4, 2021