Dear OKX users,
Following the SUI call auction listing on May 3, 2023, UTC, some users were unable to cancel orders. OKX acted quickly, located and fixed the issue, however, some users' trading activities were still impacted. OKX apologizes to affected users and will provide compensation directly within three business days. Below is a detailed description of the cause of the issue as well as the compensation rules:
1. Problems and causes
SUI was originally scheduled to come out of the call auction phase at 12:10 pm UTC on May 3, 2023. Due to an urgent request from the project team, OKX moved up the auction matching phase by 10 minutes. However, because of internal operator errors, the auction end time was not correctly propagated to the trading system core modules. The mismatching auction times triggered a fundamental bug in the trading system and subsequently created order sanity issues.
The problem eventually led to some users being unable to cancel their orders. Furthermore, due to delayed order status updates and fund settlements, some SUI orders were shown as live even when filled, causing some users to miss out on subsequent trading opportunities.
The issue has been repaired, and all users' orders have been restored to normal. At the same time, we will conduct a thorough post mortem to prevent similar issues from occurring again.
2. Conditions and compensation rules:
Due to the issue, some users' trading actions were affected and these users will be compensated. After an in-depth analysis, we have formulated the following compensation rules:
1. For users who were unable to cancel orders
Users who placed buy auction orders with prices higher than 1.3 and encountered a cancelation delay.
b) Compensation rules:
Because some users failed to cancel orders after the trades were filled, they were unable to sell their purchased SUI before the cancelation issue was fixed, and missed out on trading opportunities. We have decided to compensate these users based on the difference between the user's purchase price and 1.3 [in reference to the closing price at 4:00 pm UTC on May 3, as well as the average low point during a certain period on that day] (so a user's actual purchase price will be 1.3 after compensation). The specific formula and example are as follows:
Formula: Compensation = User's final filled amount of the auction orders × (Average price of the buy orders - 1.3) USDT
Example: User A encountered the issue mentioned above, and placed a buy order for 40,000 SUI at an average price of 1.7. User A will receive compensation of 40,000 × (1.7 - 1.3) = 40,000 × 0.4 = 16,000 USDT.
c) Compensation Process
For eligible users, we will directly deposit the difference into the user's account within three business days. If you have any questions about compensation eligibility or rules, feel free to contact us directly through customer service channels.
2. For some users who experienced fill prices lower than order prices of sell trades
Some users' sell orders appeared to be filled at a price lower than the order price they placed during the auction period. The reason for this was because of a system error impacting the front-end display that occurred while users were modifying their order prices, which prevented the system from updating order price data on time.
This was a display issue and did not cause any actual losses for users. If users have any questions about this or issues, please contact OKX through the customer service channel, and the team will investigate in due course.
We apologize for the impact and inconvenience caused. We will deeply reflect on the underlying causes of this incident, optimize the system's robustness and internal processes.
In addition, we have implemented several anti-sybil mechanisms in this SUI Jumpstart, preventing situations of "Airdrop hunters", "Multiple registered accounts", to increase the winning-lot rate for retail investors. OKX will continue to enhance our risk control measures, to create an equitable investment environment for all investors.
4 May, 2023