Bitfinex - next steps
1 Setting up balances
a) all affected by a hack trading accounts will be settled, meaning all positions will sell (longs) and buy (shorts) in full at the prices at 18.00 02/08/16 positions falling under this process are BTC/USD ETH/BTC ETC/BTC LTC/BTC
b) positions including BTC element but originating from lucky NOT affected trading wallets will remain frozen with prices at 18.00 2/8/16
- Site will come back online in read only mode, every user will see how much they have lost to both hack and settling positions.
- Bitfinex will perform Hair cut of undecided yet percentage value of all wallets holding or lending BTC, Wallets affected will be TRADING/EXCHANGE/DEPOSIT wallets with unspent btc holdings And TRADING/ECHANGE holdings with open positions/market orders and DEPOSIT holding with lent out USD in BTC positions.
- Bitfinex will present repayment plan for full user losses
PLEASE NOTE that in this case all hacked users will pay out not only the hair cut (that is what hacker has taken) but will pay out with TRADING balances for ALL of shorts and LONGS which at 18.00 2/8/16.
If you had position which at the cut off time was in red you efectively receive huge hair cut
X your trading balance HC hair cut due to BFX hacked in %ofX PL Position Loss in %of X Xn - new balance
Xn= (X-PL)*HC where the most likely HC=63% and 85%>PL>0%
providing your position was -12% PL, and you had 10 BTC there your TRADING wallet will receive treatment: 10 BTC - P/L = 7.8 BTC, and 63% hairCut from this leaves you with new balance of astonishing 2.86 BTC so REAL HAIR CUT of you balance is 71.4%
It gets more interesting with users who for instance had position close to liquidating and were transferring BTC to back the margin but to make it simpler let just have a look on the case where position was only close to liquidation.
P/L -75%, 10 BTC in TRADING WALLET
Xn= 2,5BTC - 63% = 0.925 BTC
So in the result of Bitfinex compromise user gets 97.5% hair cut !!!!
good!