VICTORIA, Seychelles, Aug. 27, 2022 (GLOBE NEWSWIRE) -- OKX, the world-leading cryptocurrency app, has issued a service update to its users ahead of September’s much-anticipated ETH Merge.
The announcement is intended to ensure that users are prepared for the event. It also outlines OKX’s protocol and provides information on asset protection.
As a new token might be created during a hard fork, OKX will be taking precautionary steps to reduce the trading risks brought about by price volatility during the hard fork. OKX takes its responsibility to safeguard user assets very seriously, and will be ready to assist users in handling any technical issues that may arise during the Merge.
OKX’s update can be read in full below:
Based on the Ethereum Foundation's announcements, the Merge will occur when Ethereum Mainnet reaches a block height of 15,540,293. This will happen sometime between September 10-20, 2022, perhaps around September 15, 2022 (UTC). The Merge will occur in two steps, Bellatrix and Paris.
Bellatrix is a consensus layer upgrade to make the Beacon Chain "Merge aware." It will occur when the Beacon Chain reaches an epoch height of 144,896, around September 6, 2022 (UTC).
Paris is the execution layer's transition from proof-of-work ("PoW") to proof-of-stake ("PoS"). It will occur when Ethereum's PoW chain achieves a Terminal Total Difficulty (TTD) value of 58750000000000000000000, around September 15, 2022 (UTC).
At this point, Ethereum's execution layer will merge into the proof-of-stake Beacon Chain, and Ethereum's PoW chain will shut down, completing The Merge.
To ensure the security of your assets, we recommend that you deposit ETH to OKX ahead of time. OKX will assist you in handling any technical issues that may arise during the Merge.
As a new token might be created during a hard fork, OKX will take the following steps to reduce the trading risks brought about by price volatility during the hard fork:
1. Suspension of ETH deposits and withdrawals
OKX will suspend ETH and other Ethereum-based (ERC-20) token deposits and withdrawals during the two upgrade events. We will announce the specific date and time.
September 6, 2022 (UTC) for the Bellatrix consensus layer upgrade
September 15, 2022 (UTC) for the Paris execution layer upgrade
2. Regarding The Merge
There are two likely scenarios that will take place during The Merge.
No new tokens are created during The Merge. OKX will resume ETH and ERC-20 token deposits, withdrawals, and cross-chain bridge services once we confirm that the Ethereum Mainnet is stable and secure.
New tokens are created during The Merge. OKX will treat the tokens generated on the Ethereum PoS chain as "ETH" and treat tokens generated on the Ethereum PoW chain as forked tokens.
Before the Paris upgrade, forked token creators may take snapshots of your ETH balances. Forked tokens will then be airdropped to you at a 1:1 ratio to your ETH holdings and will be available for deposits and withdrawals. Further details regarding the airdrop will be included in a separate announcement.
The forked tokens will go through our normal listing review process before anyone can trade them on OKX. We will notify you in a separate announcement if the tokens pass the review.
3. Trading services
Spot trading: The Merge will not affect spot trading for ETH and ERC-20 tokens.
Margin trading: The Merge will not affect trading for ETH cross and isolated margin pairs. However, OKX will suspend ETH margin borrowing and VIP borrowing services. Before service suspension, OKX might adjust the margin borrowing interest rate based on market conditions. We will notify you of the adjustments in a separate announcement.
Please note that if you have any outstanding ETH loans, including the negative equity in your trading account's multi-currency margin mode, at the time of the snapshot, you will have to repay the loan using the forked tokens, in the event of Scenario B. It is recommended that you repay your ETH loans in advance.
Futures and perpetual trading: The Merge will not affect ETHUSDT and ETHUSD perpetual swaps, nor ETHUSDT and ETHUSD futures trading.
Options trading: The Merge will not affect ETHUSD options trading.
As ETH prices might experience extreme fluctuations during the Merge, please reduce or close your positions, reduce your leverage, or increase your margin in advance. Based on market conditions, OKX might take further risk control measures, which we will notify you about in separate announcements. These may include, but are not limited to:
（1） Adjusting the margin tiers for ETH perpetual swaps and futures contracts
（2）Adjusting ETH's margin discount rate tiers in multi-currency mode and portfolio margin mode
（3）Adjusting the funding rate and the price limits for ETH perpetual swaps
（4）Adjusting the constituents for ETH/USDT and ETH/USD index prices and the mark price of ETH contracts.
4. Grow services
Savings, Staking, Dual Investment, and Smart Gain will not be affected by the Merge. Your invested ETH will be included in the snapshot. Please ensure you take sufficient risk control measures, as price volatility is often high during contentious hard forks.
Loan: The Merge will not affect ETH loans. Any ETH collateral will be included in the snapshot. Any ETH liability will also be included in the snapshot and you will have to repay with the forked token in case of a hard fork.
ETH 2.0 Staking: Subscriptions will be suspended on the day of September 6 and September 15, 2022. Your BETH profits will be distributed normally. Whether staked ETH will be included in the snapshot depends on how the forked chain handles ETH2.0 contracts. There will be a separate announcement explaining the specifics.
DeFi mining: Subscriptions to all projects will not be affected. On-chain staking and redemption will be suspended on the day of September 6 and September 15, 2022. Redemption and profit distribution will be delayed.
5. Fiat services
The Merge will not affect fiat services.
The Merge will not affect ETH conversion services.
For further information, please contact:
OKX is the second biggest global crypto exchange by trading volume and a leading web3 ecosystem. Trusted by more than 20 million global customers, OKX is known for being the fastest and most reliable crypto trading app for investors and professional traders everywhere.
As a top partner of English Premier League champions Manchester City F.C., McLaren Formula 1, golfer Ian Poulter, Olympian Scotty James, and F1 driver Daniel Ricciardo, OKX aims to supercharge the fan experience with new financial and engagement opportunities. OKX is also the top partner of the Tribeca Festival as part of an initiative to bring more creators into web3.
Beyond OKX’s exchange, the OKX Wallet is the platform's latest offering for people looking to explore the world of NFTs and the metaverse while trading GameFi and DeFi tokens.
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