Dear Users,
This notice details the final compensation for users impacted by the abnormal prices experienced during the initial 1-minute period after EMOGI Network（LOL）free trading started and trading protection was lifted.
Scope of Compensation and Amount:
Users in Scope for Compensation: Users who purchased LOL on the HT/BTC/USDT trading zone on 15 August 2019, within the Compensation Period - 21:00:00-21:05:59 (GMT+8).
Compensation Amount: Cumulative volume of LOL purchases (buy only, excluding contras/net sale) during the above-mentioned Compensation Period.
Distribution Schedule：
- Distribution Period：21 August 2019 08:00 - 20:00 (GMT+8)；
- Distribution Method：All compensation shall be in USDT. Impacted users can verify their account balances after 20:00.
- All compensation and compensation amount will be greater than or equal to trading losses incurred as a result of matched buy trades during the first 6 minutes after the start of the free trading.
Actual computations:
Total Buy Trade Volume/Quantity (Qty) to be compensated = Buy Qty 1 + Buy Qty 2 + Buy Qty 3 。。（15 August 2019 21:00:00 - 21:05:59 (GMT+8)）
Total Sell Trade Volume/Quantity (Qty) to be compensated = Sell Qty 1 + Sell Qty 2 + Sale Qty 3 。。（15 August 2019 21:00:00 – 18 August 2019 18:00 (GMT+8)）
Buy and sell trade will be converted into USDT from the BTC/HT valuation price at the point of trade using the lowest USDT conversion rate to determine the loss.
- If Buy Quantity >=Sell Quantity，Current LOL holding is 0：
That is, all the tokens bought on August 15 21:00:00-21:05:59 (GMT+8) (during the compensation period) have been sold.
If the buy value > the sell value, compensation (i.e. loss) = buy value – sell value.
- If Buy Quantity >=Sell Quantity，Current LOL holding is not 0：
That is, all the tokens bought on August 15 21:00:00-21:05:59 (GMT+8) (during the compensation period) have been partially sold.
If the buy value > the sell value, compensation (i.e. loss) = buy value – sell value （loss arising from partial sale + repurchase of unsold token principal）, as well as the repurchase of unsold tokens at the original purchase price.
- If Buy Quantity < Sell Quantity：
That is if there was buy and selling action after August 15 21:05:59, compensation will be as follows:
If Buy Value > (Sell Value/Sell Qty) * Buy Qty, the compensation (i.e. loss) = Buy Value – (Sell Value/Sell Qty)*Buy Qty
- If user falls under the condition “Buy Quantity >=Sell Quantity，Current LOL holding is not 0”, users need to ensure that their available LOL balance (i.e. not frozen, not under pending order and not pending withdrawal) in their account is greater or equal to the total repurchase quantity of LOL as defined above during the compensation period (21 August 2019 08:00 - 20:00 (GMT+8)). Otherwise, the repurchase of tokens portion of the compensation cannot take place.
- After completion of compensation, an email and SMS notification will be sent. Please verify.
Compensation details:
- As of 18:00 August 20 2019 (GMT+8), the number of users compensated totaled 1,316, with total compensation amount estimated at 2,600,000 USDT, of which 1,500,000 USDT compensation is allocated to users who have already sold LOL, and 1,100,000 USDT allocated to users with unsold tokens. All compensation will come from the Huobi Investor Protection Fund.
- After completion of the compensation process, approximately 150,000,000 LOL will be repurchased, and subsequently used for purpose of project ecosystem development.
Additional Remarks:
- As of 21:06:00 August 15 2019 (GMT+8), prices of all respective trading pairs (HT/BTC/USDT) have returned to normal. Therefore, Huobi Global will not compensate for losses beyond the above-mentioned compensation period.
- Investing in digital assets comes with high risks due to huge price fluctuations. Before trading, please have a full understanding of all the risks of investing in digital assets and be prudent of your own investment decisions.
Huobi Global
August 20, 2019
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