Rollback of All Futures Contracts Data

UPDATED on 1:12

Dear valued customers,

Futures Trading is now resumed. (01:12 Mar 31, 2018, Hong Kong Time).

Regards,

OKX

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UPDATED on 23:30

Dear valued customers,

All the rollbacks have been completed. Withdrawal and Futures Trading will be resumed at 00:00 Mar 31, 2018 (Hong Kong Time). In light of this incident, we are going to update our "Price limit rules" for Futures Trading at 00:00 Mar 31, 2018 (Hong Kong Time) for better risk control. There will be more related improvements, and we will notify you in further announcements after they are launched.

Existing Price limit rules:

First 10mins of all newly listed futures:
Upper limit = Index price (1+25%)
Lower limit = Index price (1-25%)

After 10min:
Upper limit = Avg. premium/discount within last 10min + index price(1+3%)
Lower limit = Avg. premium/discount within last 10min + index price(1-3%)

Premium/discount = (Contract price - index price)

If the discount/premium calculated equals to 0, or deviates from the index price by 25%:
Upper limit = index price (1+25%)
Lower limit = index price (1-25%).

Open Position: Order would be blocked in case of opening a long position should the order price sent is higher than the price limit. Order would be blocked in case of opening a short position should the order price sent is lower than the price limit.

Close position: To prevent manipulative actions based on irresponsible behaviors, the order price is limited to 25% deviation from the index price. When closing a long position, if the order price is lower than 25% of the index price, the order cannot be placed. When closing a short position, if the order price is higher than 25% of the index price, the order cannot be placed.

New Price limit rules:

First 10min of all newly listed futures:
Upper limit = Index price (1+5%)
Lower limit = Index price (1-5%)

After 10min:
Upper limit = Avg. premium/discount within last 10min + index price(1+3%)
Lower limit = Avg. premium/discount within last 10min + index price(1-3%)

Premium/discount = (Contract price - index price)

If the discount/premium calculated equals to 0, or deviates from the index price by 25%:
Upper limit = index price (1+25%)
Lower limit = index price (1-25%)

Open long or close short position: Order would be blocked if the order price sent is higher than the price limit.
Open short or close long position: Order would be blocked if the order price sent is lower than the price limit.

Regards,
OKX

23:30 Mar 30, 2018

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UPDATED on 21:10

Currently the futures contracts data rollback has been completed. We will commence the rollback of user intra-account transfers between "Spot Account" and "Futures Account" at 21:30 Mar 30, 2018 (Hong Kong Time). The details are as follows:

1. "Spot Account" to "Futures Account":

Transfers from "Spot Account" to "Futures Account" between 04:47:54 Mar 30 and 06:42:22 Mar 30, 2018 (Hong Kong Time) are not credited due to the futures contracts rollback, but funds have been already debited from the "Spot Account". So after delivery, we will credit back the amount to your "Futures Account".

2. "Futures Account" to "Spot Account":

Transfers "Futures Account" to "Spot Account" between 04:47:54 Mar 30 and 12:11:37 Mar 30, 2018 (Hong Kong Time) have been already credited to the "Spot Account", but funds are not debited due to the futures contracts rollback. So after delivery, we will debit the amount from your "Futures Account".

If your futures account do not have enough balance for the transfer, funds will be debited from other accounts instead: Spot Account, followed by C2C Account, then Index Account. However, if all the balances of your other accounts are still insufficient to cover the transfer amount, we will first cancel your pending withdrawals and pending sell orders in Fiat Trading for offsetting, then contact you directly to solve the issue if necessary.

Trading and withdrawal will be resumed after the above rollback. The exact time will be made known in further annoucement.

Regards,
OKX

21:10 Mar 30, 2018

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UPDATED at 17:30

We have successfully rolled back the futures contracts data to 4:47:54 Mar 30, 2018 (Hong Kong Time), when the last transaction was completed. All the futures contracts will be delivered at 17:40:00 Mar 30, 2018 (Hong Kong Time) according to the delivery prices listed below.

The transfers between user futures account and spot account will be rolled back as well, and will be processed after futures contracts delivery. We will make further announcement when it is completed.

Delivery prices:

Note: Due to inadequate liquidity, the last transaction of contracts BTG0406 and BTG0330 were completed at 00:24:11 and 04:13:48 respectively.

Regards,

OKX

17:30 Mar 30, 2018

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UPDATED at 13:17

After a detailed evaluation by our team, we will employ the following solution:

To prevent forced-liquidations due to price differences after the settlements in "bi-weekly" and "quarterly" futures contracts, we will rollback the transactions as mentioned, and all futures contracts will be delivered at 00:00 Mar 31, 2018 (Hong Kong Time). Further announcement will be made if there are any changes in delivery time.

Rollback details:

1. OKX will rollback all the data of weekly, bi-weekly and quarterly futures contracts of all tokens to 4:47 Mar 30, 2018 (Hong Kong time).

2. All weekly, bi-weekly and quarterly futures contracts will be delivered. After delivery, all open orders will be cancelled, and all holding positions will be closed at the delivery price.

Weekly futures contract delivery price: The last traded price of the weekly futures contract after the rollback.

Bi-weekly futures contract delivery price: The last traded price of the bi-weekly futures contract after the rollback.

Quarterly futures contract delivery price: The last traded price of the quarterly futures contract after the rollback.

3. After delivery, new contracts with delivery dates "0406", "0413" and "0629" of all the tokens will be generated.

4. When delivery is completed, trading will resume.

We will keep you posted on any further update from the team.

Regards,
OKX

13:17 Mar 30, 2018

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Dear valued customers,

At 5:00-6:30 on Mar 30, 2018 (Hong Kong Time), a number of users performed unusual transactions to manipulate the price of BTC quarterly futures contract, making it deviate greatly from the BTC index. Based on our team's investigation, the user closed a huge amount of positions at market price without considering the cost, causing it to drop to an unusually low level. We will disclose the transactions details in further notice.

According to the term 6.2 of OKX Futures Trading User Agreement:

"6.2 OKX reserves the right to enact executive control over accounts if malicious price manipulation or any other malicious wrong doing occurs. If required, OKX reserves the right to close accounts, limit trading, halt trading, cancel transactions, and rollback transactions to eliminate any adverse effects in the futures market."

To protect the interests of all OKX users, We have decided to rollback all the futures transactions (weekly, bi-weekly & quarterly) to 5:00 Mar 30, 2018 (Hong Kong Time). The rollback is expected to be completed at around 15:30 but it may finish earlier or later depending on circumstances. We will update the status in every 2 hours. Fiat and Token Trading will not be affected.

As today is the settlement date, weekly futures contracts will be delivered, while bi-weekly and quarterly will be settled after the rollback, according to the price at 5:00 Mar 30, 2018 (Hong Kong Time). Trading will be resumed after the settlement

For users who transferred funds from futures account to spot account after 5:00 Mar 30, 2018 (Hong Kong Time), all the transfers will be rolled back as well.

OKX always has the customers' best interests at heart, and we are dedicated to providing the best products and technologies to protect our customers. Transactions were suspended for several hours due to the incident. Please accept our sincere apologies for the inconvenience caused.

Transaction fees of Futures Trading will be waived for 7 days starting 00:00 Apr 1, 2018 (Hong Kong Time), as a gesture of our concern for your inconvenience.

Regards,
OKX

Mar 30, 2018