KuCoin Will Support Ethereum London Hard Fork
08/03/2021, 19:23:28
Dear KuCoin Users,
KuCoin will support the upcoming Ethereum (ETH) London Hard Fork, which is expected to take place at approximately 11:55 AM on August 5, 2021 (UTC) or at block height 12,965,000.
To better cope with possible situations during the fork, such as a new token generated from the scenario that the chain splits into two competing chains, as well as protect users’ asset security from potential market volatility due to the fork, KuCoin will take the following actions:
1. Two Possible Scenarios of the ETH Hard Fork:
Scenario A: In the event that no new token is created, KuCoin will resume the deposit/withdrawal services of ETH and ERC-20 tokens as soon as possible, with details to be released in a further announcement later.
Scenario B: In the event that a new token is created due to the competition between the two chains that split from the hard fork, KuCoin will acknowledge and distribute the ETH from the chain with a stronger hashrate* at a ratio of 1:1 based on the snapshot* of users’ ETH balances at block height 12,965,000, or approximately at 11:55 AM on August 5, 2021 (UTC) as stated above. Further details regarding this distribution will be stated in a separate announcement.
*the chain with a stronger hashrate will see more blocks be minted at a more stable rate during a certain period of time.
*In Scenario B where a snapshot is needed:
· The snapshots will include ETH balances in Main Account, Trading Account, and Pool-X Account.
· ETH balances in Margin Account and Lending will not be counted in users’ snapshot balances.
· The borrowed ETH balances from the Margin Market will not be counted in the snapshot balances even if they are transferred to the Main Account, Trading Account, or Pool-X Account from Margin Account.
2. Withdrawal and Deposit Services:
ETH: Withdrawal and deposit services of ETH will be temporarily closed at approximately 11:45 AM on August 5, 2021 (UTC), and will be reopened as soon as possible after the hard fork is complete;
Other ERC-20 tokens: Withdrawal and deposit services will not be closed, but transfers on chain will be delayed during the upgrade while restoring once the hard fork is complete.
3. Spot and Margin Trading
Spot Trading: Trading of ETH and other ERC-20 tokens in the Spot market will not be affected, though there might be price volatilities due to the hard fork, so please make sure you are fully aware of the risk and prepare for it;
Margin Trading: KuCoin will suspend the ETH borrowing at 12:00 PM on August 4, 2021 (UTC). However, ETH Margin trading will not be affected. Please note that liquidations remain possible under extreme price volatility, so please pay more attention to your Margin trades.
4. Leveraged Tokens – ETH3L and ETH3S
The trading of ETH3L/USDT and ETH3S/USDT trading pairs will not be affected. Please be aware that in the event of extreme price movements, the Subscription and Redemption features may be suspended.
5. Futures Trading:
The USDT-Margined contracts and COIN-Margined contracts of ETH will not be affected. If there is extreme market volatility or deviation of prices, KuCoin Futures will adopt a dual-price mechanism to update the mark price. Please note that liquidations remain possible under extreme price volatility, so please pay more attention to your Futures trades.
To ensure the mark price can manifest the market cap of a coin and avoid the liquidation caused by non-market factors, KuCoin Futures adopted a dual-price mechanism for risk control:
When Fair Basis ≥ Index Price*3%, the Mark Price=Index Price* (1+Fair Basis)
When Fair Basis ≤ Index Price*2%, the Mark Price=Index Price* (1+Funding Fee Basis Rate)
During the shift of the calculation algorithms, the calculation of the mark price will be carried out via the smoothing method.
6. OTC Trading
KuCoin will suspend the purchase services of ETH and ERC-20 tokens from 11:45 AM on August 5, 2021 (UTC) and will resume once the network stabilizes.
The crypto purchase services, including third-party providers (Banxa, Simplex, BTC Direct, Mercuryo, and Mobilum) and the P2P market will be affected.
Further Notes:
· In the event that snapshot is needed, unconfirmed ETH deposits and pending ETH withdrawals will not be counted in user’s snapshot balances, KuCoin will assist with all the tech issues arising from the hard fork for you;
· Pool-X reward distribution might be delayed due to the hard fork;
· Details of resuming the deposit and withdrawal services, including the timetable, will be disclosed in another announcement after the fork is complete and the network stabilizes;
· Please refer to the exact time at Ethereum mainnet block height of 12,965,000 for the precise time of the hard fork, while considering the expected time of 11:55 AM on August 5, 2021 (UTC) as an estimation.
Further information is available at London Mainnet Announcement and London Upgrade Overview .
For users would like to know more details about the London Hard Fork, please refer to a previous KuCoin blog here .
Regards,
The KuCoin Team
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