Notice Regarding the Upcoming Ethereum Merge

10 September, 2022

Dear Customers,

Thank you for using Sherolex.

Ethereum’s Proof-of-Work (PoW) chain will migrate to the Proof-of-Stake (PoS) chain upon hitting the Terminal Total Difficulty (TTD) value of 58750000000000000000000. The execution layer upgrade (Paris) is expected to take place between 2022-09-10 and 2022-09-20. Current estimation lies at the ETH mainnet block height of 15,540,293, or approximately at 2022-09-15 00:30 (UTC).

As a new token might be created during a hard fork, Sherolex has taken the following steps to reduce the trading risks brought about by price volatility and to maintain the safety of user funds during the hard fork:

1. ETH Deposits & Withdrawals
Sherolex will suspend deposits and withdrawals for ETH and ERC-20 tokens at approximately:
・2022-09-15 00:00 (UTC) for the Paris execution layer upgrade

Please ensure that you leave sufficient time for your ETH and ERC-20 tokens transfers to be fully processed prior to the above time. We will handle all technical requirements for users holding ETH and ERC-20 tokens on Sherolex.

2. Regarding the Merge
The two likely scenarios to occur with the Ethereum (ETH) Merge are:

Scenario A:
No new token is created. Sherolex will then reopen deposits and withdrawals for ETH and ERC-20 tokens as soon as possible.

Scenario B:
The chain splits into two competing chains and a new token is created. The “ETH” ticker will be used for the Ethereum PoS chain. We will then credit to users’ Sherolex accounts the forked token from the minority chain at a ratio of 1:1, based on the snapshot of ETH balances before the Paris execution layer upgrade (approximately at ETH mainnet block height of 15,540,293, or 2022-09-15 00:30 (UTC)). Withdrawals for the forked token will be supported. Further details regarding this distribution will be stated in a separate announcement.
Sherolex reserves the right to update the treatment of the chain split in a further announcement.
In order to protect Sherolex users, the forked token will go through the same strict listing review process as Sherolex does for any other coin/token. Sherolex does not guarantee any listings as per our internal policy.

3. ETH and ERC-20 Tokens Spot & Margin Trading
Spot trading: Spot trading for ETH and ERC-20 tokens will not be affected. Please ensure you take sufficient risk measures as price volatility is often high during contentious hard forks.
Margin trading: Trading for ETH cross and isolated margin pairs will not be affected. However, Sherolex will suspend ETH cross and isolated margin borrowing from 2022-09-07 17:00 (UTC) to approximately 2022-09-16 00:00 (UTC).
Please note that liquidations remain possible under extreme price volatility. Sherolex reserves the right to update the suspension time of ETH cross and isolated margin borrowing and adjust the borrowing interest rates for ETH, with or without prior notice. In addition, users with liability of ETH are required to return the forked token in the case of Scenario B.

Thank you for your understanding and cooperation.