How First Global Credit Will Handle a Hard Fork

All our client funds are held in cold storage or in a BitGo multi-sig wallets.

In the event of a hard fork the following process will be followed:
  1. There will be a temporary suspension of deposits and withdraw requests. If any funds are deposited by an existing customer to an existing address then the funds from that transaction will be handled separately until the status on that transaction is clear on both chains. Clients will not be credited with these deposits until; after step 3 below.
  2. Once the status of both chains is clear and irrevocable, clients will be credited with bitcoins from the primary chain and alt coins from the secondary chain.
  3. Transactions made after the suspension of deposits will be analysed to determine if the transactions are fully confirmed and legitimate on either or both chains. Client accounts will be credited with the coins from either or both chains where sufficient confirmations exist and First Global Credit have confirmed that the coins can be transferred to a holding address on the respective chains.
  4. FGC will provide a market on both the primary market and the alt market (providing a viable market exists). At this time deposits and withdrawals will be made available in both crypto assets. FGC will also accept both assets as collateral for market positions.
  5. In the event that the altcoin is not considered a viable market but the coins still have clear and irrevocable separation from the bitcoin blockchain then we will make withdraw facilities available so customers can withdraw the alt coins back to their own wallets.
  6. If the Hard Fork even takes place customers will only receive BCC on settled bitcoin balances. Any margin positions and any unrealised gains will not receive BCC. Anyone holding short bitcoin positions will not be holding a BCC short position if the event takes place.
    Because of the different ways various exchanges are handling the event, there may be a situation where FGC has either a surplus or deficit of BCC. If this is the case the difference will be prorated across all customer accounts.

Other Questions

  1. How is a leveraged long bitcoin position handled? If you have a leveraged long bitcoin position (where you have borrowed fiat currency to purchase additional bitcoins) then you will own both assets in your account after the fork (it is expected that the sum of both coin values will approximate the unsplit bitcoin value).
  2. How is a short bitcoin position handled? If you have sold more bitcoins than held in your account so you have a short position in bitcoin in your account then you will be short both assets after the fork.
  3. How will margin on stock or futures positions be handled? At the point of the split we will allow both coins to be used as collateral and both will be given the same value in terms of collateral.

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