CoinFLEX.US Update: July 14, 2022
2022-07-14

 

Dear CoinFLEX.US Community,

 

The following statement details the specifics outlined in our last update from July 9, which you may find here. You may also find our full statement here

Please read through the following information to understand how CoinFLEX.US will handle the process of re-enabling limited flexUSD redemptions. 

 

Timing of Actions

We expect to re-open flexUSD redemptions on Friday, July 15 after we have taken action on CoinFLEX.com to resume suspended operations. We expect for this to take place at 5am UTC (8pm EDT). Thereafter, we will shut trading and system access on CoinFLEX.com. We anticipate this to last a few hours and will notify you once the process has been completed. At this time, we will be able to simultaneously re-enable flexUSD redemptions on CoinFLEX.US. flexUSD will not be available for withdrawals until further notice. 

 

The Implication of Locked Funds for flexUSD

  • flexUSD balances held by CoinFLEX.US users will be subject to a 90% lock. Users can redeem the 10% available balance.
  • Any new flexUSD deposits on CoinFLEX.US (i.e., transferred from a cold storage wallet to CoinFLEX for redemption purposes) will see 90% of the deposit amount locked. flexUSD will only be redeemable on the platform, so to benefit from being able to redeem 10% of your flexUSD assets, we strongly urge you to re-deposit flexUSD held off the platform back on as soon as possible.
  • All currently pending flexUSD redemptions will be processed to users’ balances as USDC and will also be subject to the same 10/90 lock ratio, with 10% of the USDC available for spending and withdrawals.
  • All currently pending flexUSD mints will be processed to users’ balances as flexUSD and will also be subject to the same 10/90 lock ratio, with 10% of balances being fully redeemable without any lock. As all open futures positions on CoinFLEX.com must be closed out, flexUSD will no longer hold short perp positions, and therefore holders will not earn interest on the remaining locked balance for the time being. flexUSD may earn interest again in the future.
  • New flexUSD minting will be suspended until further notice.
  • All remaining assets remain wholly available and withdrawable.

     

Further Announcements

We are continuing to work on all avenues to resolve the CoinFLEX situation. This ranges from possible further flexUSD redemptions and withdrawals and potential new equity investors to the acquisition of CoinFLEX and combinations in between. We will further update everyone on next steps by Friday, July 22, or earlier if possible.

 

Sudhu Arumugam and Mark Lamb,

CoinFLEX Co-Founders

 

 

FAQ

 

Are deposits and withdrawals working?

We have now enabled limited flexUSD redemptions, so only the flexUSD in your available balance will be redeemable. flexUSD will not be available for withdrawals until further notice. Users may deposit all assets and withdraw all assets except for flexUSD. 

 

Am I able to trade on CoinFLEX.US?

Yes, trading is functioning normally. 

 

How is CoinFLEX.US treating limited redemption of flexUSD? 

As a response to the current situation of CoinFLEX.com, we are temporarily enabling users limited redemptions of flexUSD. We will make 10% of flexUSD balances available for redemption. 

 

How are new flexUSD deposits affected?

Any new flexUSD deposits on CoinFLEX (i.e., transferred from a cold storage wallet to CoinFLEX for redemption purposes) will see 90% of the deposit amount locked.

 

Am I able to withdraw flexUSD?

No, withdrawal of flexUSD will not be available until further notice. 

 

Am I able to withdraw USDC?

Withdrawals of held and deposited USDC will remain available and unaffected, except for the USDC credited via completing the processing of currently pending flexUSD redemptions. 

The USDC balance that is currently visible as 'available' and any future USDC deposits will remain withdrawable.

If you currently have a pending flexUSD redemption in your account, the USDC from that specific redemption will be affected by the 90% lock.

 

What are locked funds?

The remaining 90% of your flexUSD balance will be considered locked funds. 

Locked funds will appear in your balance, but they will not be available for withdrawals, redemption or trading. 

 

What are the implications of locked funds for flexUSD? 

  • flexUSD balances held by CoinFLEX.US users will be subject to a 90% lock. Users can redeem the 10% available balance.
  • Any new flexUSD deposits on CoinFLEX.US (i.e., transferred from a cold storage wallet to CoinFLEX for redemption purposes) will see 90% of the deposit amount locked. flexUSD will only be redeemable on the platform, so to benefit from being able to redeem 10% of your flexUSD assets, we strongly urge you to re-deposit flexUSD held off the platform back on as soon as possible.
  • All currently pending flexUSD redemptions will be processed to users’ balances as USDC and will also be subject to the same 10/90 lock ratio, with 10% of the USDC available for spending and withdrawals.
  • All currently pending flexUSD mints will be processed to users’ balances as flexUSD and will also be subject to the same 10/90 lock ratio, with 10% of balances being fully redeemable without any lock.
  • As all open futures positions on CoinFLEX.com must be closed out, flexUSD will no longer hold short perp positions, and therefore holders will not earn interest on the remaining locked balance for the time being. flexUSD may earn interest again in the future.
  • New flexUSD minting will be suspended until further notice.

     

Updated as of July 14, 2022