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Our policy on the measures we plan to take on the Bitcoin “SegWit2x” hard fork *updated on November, 17


important notice

 

[Please note that the following is an English translation of the original Japanese version, prepared only for the convenience of non-Japanese speakers concerned. In case of any discrepancy between the translation and the Japanese original, the latter shall prevail.]

Original text: https://coincheck.com/blog/4535

 

We have changed our policy on how to deal with SegWit2x as its activation date was postponed.

 

■What was changed

• Distribution of cryptocurrency: Will not occur
• Repayment obligation: Will not occur
• Deposit and withdrawal: There is a possibility that transferring of BTC to a wallet other than Coincheck will not be available temporarily. Transferring funds between Coincheck wallets and deposit to Coincheck wallet will be available as usual
• Buying and selling: Will be available as usual

 

We appreciate your understanding in advance.

 

Contents above are updates on November 17, 2017.
The following is our policy before the update.

 

At block 494,784 (expected to be reached on November 15, 2017), SegWit2x hard fork is highly likely to occur. We would like to let you know what we plan for this fork.

 

Introduction

 

Regarding the SegWit2x hard fork, it has not been announced yet whether Replay attack countermeasures will be implemented and “Bitcoin” and “SegWit2x” will evolve. There are many uncertainties as to how SegWit2x will be implemented. Our utmost priority is to protect our clients’ assets and the stability of our services. Therefore, we may change our planned measures according to the evolution of the situation in the near future. If it’s the case, we will inform the change on this blog, our official SNS, etc. separately. We kindly ask your understanding about this notice.

 

The blockchain that will be generated due to the hard fork is referred to as “B2X” and the existing blockchain is referred to as “BTC”. It should be noted that these designations do not intend to mean which community we support, neither relate to any of the opinions or ideas on this issue. (Therefore, the designation and currency codes may be changed later accordingly.)

 

Reference:https://segwit2x.github.io/

 

 

Our planned measures

 

Our plan is that the B2X generated will be distributed. It is expected that the distribution of B2X may include repayment obligation of the same amounts as “BTC short positions for the leverage transaction” and “BTC loaned by credit transaction.” Please read this article carefully.

 

If the following cases occur and we judge that it is difficult to protect your assets or provide our stable services, we might avoid the distribution of B2X.

 

・ If it is confirmed that the countermeasures against replay attack are not sufficient.
・ If the number of miners is not enough for a stable generation of the blocks.
・ If any vulnerability is found but no countermeasures is taken.
・ If we judged that it is not appropriate to assign B2X for any other reasons.

etc.

 

When we will distribute B2X?

 

The distribution will be done after we confirm the safety and stability of B2X. Therefore, the schedule of the distribution has not been fixed yet. We would like to ask for your understanding.

 

Details of distribution

 

The same amount of B2X will be distributed according to your remaining balance when the last common block shared by Bitcoin and SegWit2x will be generated.

The actual distribution may be carried out by exchanging B2X into another currency. The exchange rate will be determined by us referring to the actual market rate.

 

How much we will distribute?

・The same amount of BTC owned on your “exchange account”. (positive distribution)
・The same amount of BTC owned on your “Coincheck payment account”. (positive distribution)
・The same amount of BTC owned or loaned on your “Coincheck lending account” (positive distribution)
・The same amount of BTC for long leverage position (positive distribution)
・The same amount of BTC for short leverage position (negative distribution)
・The same amount of BTC loaned via credit transaction (negative distribution)

 

Examples

 

・In case you owned 1 BTC on your “Coincheck Exchange Account” → we will credit you 1 B2X.
 We will credit you as many B2X as BTC you own. (positive distribution)

 

・ In case you owned 1 BTC on your “Coincheck payment account” → we will credit you 1 B2X.
 We will credit you as many B2X as BTC you own. (positive distribution)

 

・・In case you owned 1 BTC on your “Coincheck lending account” → we will credit you 1 B2X.
 We will credit you as many B2X as BTC you own. (positive distribution)

 

・In case you loaned 1 BTC on your “Coincheck lending account” → we will credit you 1 B2X.
 We will credit you as many B2X as BTC you own. (positive distribution)

 

・In case you applied for loan one of your BTC through your “Coincheck lending account” → we will credit you 1 B2X.
 We will credit you as many B2X as BTC you put for loan. (positive distribution)

 

・In case you had a long leverage position of 1 BTC → we will credit you 1 B2X.
 We will credit you as many B2X as BTC you bought for your long position. (positive distribution)

 

・In case you had a short leverage position of 1 BTC → we will debit you 1 B2X.
 We will debit you as many B2X as BTC you were selling on your short position. (negative distribution and possible repayment obligation)

 

・In case you loaned 1 BTC in credit transaction → we will debit you 1 B2X.
 We will debit you as many B2X as BTC you were loaning from us. (negative distribution and possible repayment obligation)

 

Regarding repayment obligation

 

In the following cases, the B2X distribution will include “repayment obligation in B2X equivalent to the amount of BTC owned.” :

 

・In case you have a leverage transaction with BTC short position.
・In case you loaned BTC by credit transaction.

 

・If repayment obligation in B2X occurs, withdrawal in Japanese yen and all cryptocurrencies owned on your Coincheck accounts will be frozen until the repayment is completed.
・If the remaining balance of B2X is not enough for the repayment, it can be repaid in a currency other than B2X. In such a case, the exchange rate will be determined by us referring to the actual market rate.
・The timing of B2X repayment will be determined by us and informed later.

 

Conclusion

 

Our planned measures for the SegWit2x hard fork will be different from the ones taken for the Bitcoin Gold one. As explained in the “Introduction” above, it has not been certain yet whether any measures will be taken for replay attacks. The influence from the community pushing the SegWit2X hard fork is big. Therefore, a large impact on the Bitcoin price is to be expected. Under these circumstances, we would like to take measures that allow us to provide our clients with deals as fair as possible.

 

We will do our best to minimize your inconvenience. Your understanding and cooperation will be much appreciated. Please note that the Bitcoin hard fork will increase the risk of sudden change in price. You must take extra caution when exchanging cryptocurrencies at that moment.

 

 

* The times described here are all Japan times.

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