The Bitcoin Cash (BCH) network is expected to undergo a hard fork on Nov. 15. There are currently two competing fork proposals, Bitcoin Cash ABC (BCH ABC) and Bitcoin Cash Node (BCHN). Users holding BCH before the fork will receive two new assets, BCH ABC and BCHN.
Please see our previous announcement regarding the BCH fork event for details on how spot and margin trading will be affected.
For BCHUSD and BCHUSDT futures and perpetual swaps, the adjustments on risk control rules will be as follows:
1) Underlying asset for BCH derivatives contracts
The underlying asset of the BCHUSD and BCHUSDT futures and perpetual swap contracts on the OKEx platform is the pre-fork coin, Bitcoin Cash (BCH). These markets will continue trading during the fork, and the contract name will not change. After the fork is complete, the underlying asset will follow the forked asset with the highest price.
2) Risk Control Adjustments
We will make risk control adjustments at 9:00am (UTC) on Nov. 15. Please note, if the situation occurs where there is a lack of index components, we may adjust the risk control rules before this time.
a) The contract price limit will be calculated according to the following rules:
Futures: maximum buy price = contract k-line average price of last minute *(1+ 15%); minimum sell price = contract k-line average price of last minute *(1- 15%);
Perpetual swap: maximum buy price= contract k-line average price of last minute *(1+ 15%); minimum sell price= contract k-line average price of last minute *(1-15%);
contract k-line average price of last minute = (open price of last minute + closing price of last minute)/2
b) Mark price adjustments
l When minimum sell price < contract middle price < maximum buy price,
Mark price = Contract middle price = (contract best bid price + contract best offer price)/2
l When contract middle price > = maximum buy price, mark price = maximum buy price
l When contract middle price <= minimum sell price, mark price = minimum sell price
c) The upper limit of the perpetual funding fee will be adjusted to 0, and no funding fee will be collected from 4:00pm (UTC) on Nov. 15 until the third funding fee period after the index components come back to a normal state.
If the index components and risk control rules come back to normal state at 4:00am UTC on Nov. 16, then the funding rate will be calculated from 8:00am (UTC) to 4:00pm (UTC) on Nov. 16 and be collected again at 12:00am (UTC) on Nov. 17.
After the fork is completed, multiple exchanges may list new spot trading pairs. We will select the chain with the higher price at the time as the underlying asset of the contract and add it to the BCH contract index component. After the index component stabilizes, the risk control logic will revert to its default logic. To ensure that we can build the index promptly, we will follow all exchanges closely and might adjust index components immediately, without announcement.
Thank you for your continued support as we work to provide you with the best possible trading experience.