Note on Earlier Incident of Abnormal Pricing of Certain Trading Pairs

Dear BitMax.io Users,

Transparency and client-first service have always been core values of BitMax.io. In response to earlier market disruption that affected several trading platforms, including BitMax.io, the platform temporarily suspended withdrawal, and promptly identified the root cause and outlined key action steps to address concerns from affected users. 

Incident Overview

At roughly 2:00am EDT on August 23, 2019, system outages on Amazon Web Services (“AWS”) began affecting market data feeds from Binance. Given the significant volume and liquidity on Binance, many market makers of BitMax.io, leverage Binance market data feed as one of external pricing feeds. 

As a result, the Binance pricing feed outage affected the pricing on select BitMax.io order books, causing abnormal trading behavior and significant price movement well off fair value across multiple trading pairs during short period of time. As part of platform risk control mechanism, all withdrawal was temporarily suspended and trading halt was placed on affected customers. 

Please make note that this market incident does not have impact on margin trading from forced liquidation perspective, as the composite reference price is based off pricing from five trading platforms.

Action Steps

In an effort to foster a fair and orderly marketplace, BitMax.io team has promptly analyzed all the transaction information and assessed client impact for the following action steps:

1. As this was an unforeseeable market disruption, in accordance with Section 4.5 FAILURES, ERRORS OR DISRUPTIONS in Terms of Services, the platform decided to reverse all the orders executed for the affected trading pairs OUTSIDE the pricing boundary as below, for two trading windows: 01:55-02:02am EDT and 02:15-02:28am EDT. The pricing boundary was determined by taking highest and lowest market prices from Huobi with additional 5% mark-up applied.

     

2. For those users who are severely affected by this market incident, please contact Customer Support for review on the case-by-case basis. 

Thank you for your continued support. Please stay tuned for announcement on the timeline of trade reversal and when the withdrawal will be resumed.

If you have any questions, please do not hesitate to contact BitMax.io Customer Support and community managers directly.

BitMax.io Team

August 23rd

BitMax Official Group: https://t.me/BitMaxioEnglishOfficial