Here you will find the steps to follow in case any currency of the pairs with which you operate is going to be delisted or renamed. Remember that is important that each trader/user is aware of what's happening in the Exchanges with which works.
💡 The purpose of this article is to warn traders and users about a recurring situation and what can be done to prevent this from leading to losses.
In this Article:
What's delisted coin, renamed coin, and delisted pair?
We have to start with the theory and know what each case refers to:
Delisted coin: It's considered delisted when the Exchange removes it in its entirety. There is no such coin on that Exchange anymore.
Renamed coins: It's considered renowned as it indicates, that they change the name but it is still the same currency. For example, the "BZRX" coin was renamed to "OOKI". The exchange ratio applied for this pair was "1:10", this means that "1 BZRX" is equal to "10 OOKI".
In some cases the ratio also varies, it can be "1:1"; "1:5"; or "1;100" depending on the change they want to apply, but the value of the coin will always be given by the market.
Delisted pairs: When the Exchange removes some specific pairs, you can continue operating with that coin against another currency, but it is very strange that this happens. For example, we have that the "NEO/TUSD" pair was delisted, but you can still trade "NEO" with "NEO/USDT"; "NEO/BNB"; "NEO/BTC"; "NEO/ETH"; "NEO/BUSD"; "NEO/TRY" and "NEO/RUB".
What should I do if I know that a coin is going to be delisted/renamed?
When trading a coin that is known to be delisted or renamed, the best thing to do is to close all positions associated with that coin before the deadline, to avoid any issues that could cause losses to traders and their followers.
Exchanges always announce days in advance what changes they will make to currencies and set the deadline by which those changes will be applied.
To be aware you can check the announcements section:
If for any reason the positions have not been closed, in this article we explain what should be done in each case.
For Profit-Sharing service providers the easiest and quickest way to avoid future accounting issues is to manually close the position(s) before the delisting or swap date established by the Exchange, regardless of whether it is in profit or losses. Please take into account that the Exchange does this automatically in the Exchange. Still, as you know, those actions are not automatically executed in our system.
If the position was not closed before the deadline for some reason, the trader needs to contact Support and provide us with all the information, please specify the name of your service, the position with the issue, and the pair in the form.
We will analyze what we can do in each situation, but still, suppose we cannot do anything about it on our part. In that case, your service will record a loss of 100% of that position, which will affect his statistics, let's remember that the first thing users see before following any service is this, the statistics.
*In the Futures Markets, the Exchange usually closes the contract directly when the deadline arrives, generating accounting problems within the service.
Remember, you should be aware of the status of the pairs that you trade on the Exchange to avoid any unwanted situation. Zignaly is not responsible for this type of situation.
Consequences of not closing positions before the deadline
Bad stats, This is perhaps the most important thing, losing 100% of the position because the coin was delisted will negatively affect it, it will be reflected in the performance graph and analytics, and any user will be able to see it and there is no way to change it.
Margin decrease, For future operations you will have a "locked" amount, less margin to operate.
Loss of coin value, The price will probably go down due to different factors, which means that you will not only lose the position, but also a large part of the value of the coin.
Wrong accounting, Will cause problems with the balances and the margin, it can prevent you from continuing to operate normally, and it will affect graphs and statistics.