Hotbit 2.0 part 2 : Deficit System

Dear respected users,

The deficit system is one of the cores of improving transparency. The following force majeure problems are liability without faut belong to CEX, but has caused permanent loss or temporary unavailability of assets.

1. Hackers steal funds.

2. A certain crypto currency has its own technical and operational problems, resulting in the loss of the asset.

3. A project of the exchange was involved in a case, and the law enforcement department freeze the assets in the exchange.

4. A large number of small assets are stuck in DUST addresses due to the high gas fees on the chain.

In the past, CEX has often dealt with the above four situations "secret treatments", which has often created bad debts within CEX that are unknown to the external world, and this is the most important reason why the credibility of CEX has been questioned.

On balance Hotbit believes that the "open and transparent" mechanism is better than the "secret treatments" in such matters, because many of the so-called "secret treatments" just superficially cover up the problems, and does not solve the actual problems, which eventually leads to worse condition. Therefore, in view of the above four situations, Hotbit will disclose them as soon as possible in the future and adopt the "deficit" treatment scheme.

The specific rules are as follows:
1. Hotbit will calculate the unusable proportion of relevant assets according to the actual losses or frozen assets. All unusable assets will be converted into deficit assets. This ensures that all other assets are not affected.

2. Hotbit will airdrop HTB for deficit assets every week to gradually reduce deficit losses.

3. Hotbit will open the trading function of deficit assets to meet the liquidity needs of deficit assets.

4. Hotbit will continue to accumulate "deficit margin" from operating income. As long as Hotbit has a deficit, Hotbit will deposit all net income into the deficit margin, and the deficit margin will be used to buy back the deficit; If there is no deficit at present, 20% of the net income will be deposited into the deficit margin to deal with possible deficit problems in the future.

5. As long as Hotbit has a deficit, Hotbit will use all its net income for deficit margin, This means that during this period shareholders will not received any dividends, employees will not received any bonus, and HTB repurchase will be temporarily suspended.

Hotbit Team