Announcement Regarding the Upcoming Bitcoin Cash Hard Fork

Dear KuCoin Users,

The Bitcoin Cash (BCHABC) blockchain is scheduled to undergo a hard fork at 20:00:00 on November 15, 2020 (UTC+8). If a new token is forked, KuCoin will support the new token. To reduce the trading risks brought about by price volatility and to maintain the safety of user funds during the hard fork, KuCoin will handle the hard fork as follows:

Margin Market

In order to reduce the potential risks that this hard fork brings to users’ Margin account assets, KuCoin Margin will stop BCHABC’s lending and trading services. At that time, the system will automatically execute order cancellations and mandatory repayments. At the same time, all BCHABC assets in your Margin account will be automatically transferred to your Main account. Please cancel orders, return coins, close positions, and transfer in time.

At 18:00:00 on November 7, 2020 (UTC+8), KuCoin will close the BCHABC lending function. At that time, the KuCoin Lending Market will stop supporting BCHABC lending and borrowing.

At 18:00:00 on November 10, 2020 (UTC+8), KuCoin will close BCHABC/BTC, BCHABC/ETH, and BCHABC/USDT Margin trading and the function of transferring BCHABC assets to your Margin account. Please repay the currency in time. If the user still has BCHABC debt, the system will activate the liquidation function for repayment. (Regardless of whether the borrowing is due or not).

At 18:00:00 on November 13, 2020 (UTC+8), the KuCoin system will automatically transfer the BCHABC assets in the Margin account to the Main account. Please transfer out the BCHABC assets in the Margin account before then, and do not use BCHABC as your Margin for leverage.

Users with Negative Balance should transfer enough assets to the Margin account in time, otherwise the account will be affected.

Deposit, Withdrawal, Spot and OTC Trading

At 00:00:00 on November 13, 2020 (UTC+8), KuCoin will suspend the BCHABC Instant Exchange service.

At 18:00:00 on November 15, 2020 (UTC+8), KuCoin will suspend the BCHABC deposit and withdrawal services.

At 19:00:00 on November 15, 2020 (UTC+8), KuCoin will close the BCHABC related Spot trading. At that time, the system will automatically cancel orders.

At 20:00:00 on November 15, 2020 (UTC+8), the user's position of BCHABC will be recorded.

KuCoin will suspend related OTC trading before the completion of the BCHABC hard fork.

KuCoin Futures

The transaction of BCH Perpetual contracts (USDT-margined) will still be available during the hard fork, with the name of the ticker symbol and the index remaining unchanged. The details are as follows:

1) By 18:00:00 on November 6, 2020 (UTC+8), the maximum available leverage for the BCH perpetual contract will be adjusted from 50x to 10x. Existing positions and open orders will not be affected by this adjustment.

2) The platform will adjust the risk control mechanism of the BCH Perpetual contracts before November 15, 2020 (UTC+8) as follows:

a) The limit for order price will be raised to 15% from the original 5%. The calculation:

Maximum bid price = Mark price * (1+15%)

Minimum ask price = Mark price * (1-15%)

b) Dual-mark price mechanism

To prevent liquidations caused by illegal market manipulations and ensure the market value of the symbol, the platform has adopted a risk control mechanism over the mark price:

When the Fair Basis ≥ Index Price * 3%, the Mark Price = Index Price * (1 + Fair Basis Rate)

When the Fair Basis ≤ Index Price * 2%, the Mark Price = Index Price * (1 + Funding Basis Rate)

During the shift of the calculation algorithms, the calculation of the mark price will be carried out via the smoothing method.

3) Underlying assets after the hard fork

After the hard fork of BCH, when the prices of the fork symbols released by popular exchanges are trending towards stability, the platform will choose symbols with relatively higher price as our reference underlying assets for BCH contracts. At that time, we will update our index price and restore the leverage and price limit of the order to the original state. We will release announcements in advance over the changes of the index, trading pairs and relative regulations over risk control, so please pay attention to our announcements.

Regarding the BCH Hard Fork

This upgrade is expected to fork Bitcoin Cash out of two chains, BCHA (Bitcoin Cash ABC) and BCHN (Bitcoin Cash Node).

If the fork results in two competing chains, KuCoin will open BCHA and BCHN related services selectively. Please stay tuned for the announcement. KuCoin will respect the opinions of the community, reach a consensus with the community and users, and ensure the smooth operation of the market to the greatest extent.

If no new coin is created, KuCoin will then resume BCHABC related services as soon as possible.

A further announcement will be made regarding follow-up services after the hard fork is completed and the network is stable.

Thanks for your support!

The KuCoin Team