Q1: Why are deficit rates different in different tokens/coins?
A1: The deficit rate is related to the number of tokens/coins used for market making (Abbreviated as MM), and the amount of MM used for market making for a particular token/coin is decided by the MM team, the demand of each token is different, so the deficit rate will be different.
For instance, USDT and SHIB have a huge amount of users on Hotbit, and the demand for MM is high, so it leads to a high amount of MM accounts being frozen this time; then the deficit rate of these tokens will be higher than that of others.
In addition, Hotbit has some extra reserves in some tokens/coins, such as ETH, so Hotbit has made advances in these tokens/coins reducing its deficit rate.
Q2: It is known that the baseline of USDT is 1000. If my account assets are greater than 1000 USDT, how much USDT can I withdraw from my account?
A2: If the USDT asset in your account is greater than the baseline, then some USDT in your account will be in deficit. Suppose you have 1,500 USDT in your account, then your account has T=(1,500-1,000)*0.52=260 USDT will be turned into a deficit asset , that is, 260 USDT becomes 260 DFUSDT. You can directly trade or withdraw 1500- 260 = 1240 USDT in your account.
Note: The deficit asset can also be withdrawn after trading. For example, you can trade your DFUSDT assets to USDT after the DFUSDT/USDT trading pair is open, and then withdraw. If you do not trade the deficit asset, we will also airdrop HTB to users every week according to the snapshot and ratio to gradually reduce the loss of users.
Q3:If the assets I hold do not exceed the corresponding baseline amount, will my assets be affected?
A3: If the assets you hold do not exceed the corresponding baseline amount, your assets will not be affected by the deficit, and you can operate normally after the deposit and withdrawal functions are restored.
It is known that the baseline of USDT is 1,000. Assuming your holdings are less than or equal to 1,000 USDT, your USDT will not be in deficit.
Q4: Suppose the remaining assets of my spot account are 300 USDT, which does not exceed the USDT baseline, but there is 400 USDT in the investment account and 500USDT in the funding account, and the total assets of my holding are 1200 USDT, which is greater than the USDT baseline, so is the USDT in my account affected by the deficit?
A4:As long as the total assets in the account exceed the baseline of the currency (total assets = funding account + investment account + spot account + ETF account), it will be affected by the deficit.
The total deficit will be calculated first according to T = (amount - baseline)* Deficit Rate
T=(300+400+500-1000)*0.52=104, then calculate the number of deficits needed for each sub-account one by one according to the total deficits
Q5: Can the deficit assets starting with DF be withdrawn?
A5: Assets starting with DF can only be used for trading, and cannot be deposited or withdrawn. If users want to withdraw the deficit assets starting with DF, they can only withdraw after trading.
Q6: Can the coins not listed in the announcement be deposited and withdrawn normally?
A6: Coins not listed in the Part2 announcement are not affected by the deficit, and will be resumed deposit and withdrawal functions on September 14th.
Q7. The prices of the affected crypto currencies are also changing. Is the corresponding deficit rate updated in real time?
A7: The deficit rate will gradually decrease with the progress of repayment.
Q8. At what time or at what price is the value of deficit assets calculated?
A8: When airdropping HTB, we will determine the airdrop proportion based on the average price of the original assets every week. However, the value of the deficit secondary market depends on the market.
Q9: Does nUSD also count as USDT and is part of the affected assets?
A9: Yes, because nUSD is linked with USDT, it also counts as USDT and is part of the affected assets.
Q10: If I don't trade my deficit asset, what will happen to those assets at a later date?
A10: In this case, once the law enforcement authorities partially or completely unfreeze the assets of Hotbit, we will automatically partially or fully pay off the deficit existing in Hotbit (eg. DFUSDT will be converted directly to USDT ). However, the deficit assets in users' accounts will not automatically change until the funds are unfrozen by the enforcement authorities, unless you trade them. And If you don't trade them all the time, then you will always receive HTB airdrops. In addition, according to the deficit system (https://hotbit.zendesk.com/hc/en-us/articles/5237407755031 ), Hotbit will turn the net profit into deficit margin and regularly buy back the deficit in the secondary market.
Q11: Is HTB airdrop an additional reward or the compensation for the deficit assets?
A11: HTB airdrop is Hotbit's compensation to users who hold deficit assets within its capabilities. In the worst case (we must admit that the worst may happen), the source of the deficit has not released the funds, but users will always receive HTB airdrops, and these HTB are the final compensation for the deficit assets. While in the best case, if the source of the deficit releases the funds, the deficit assets’ holder will get the HTB as additional rewards on the premise of recovering the principal.