WHAT IS A BITCOIN 'FORK’?

A Bitcoin fork happens whenever there is a sustained and unreconcilable bifurcation of the Bitcoin transaction ledger.

Prior to the fork, the Bitcoin Blockchain is a single chain recording transactions. Once a Fork takes place, the Blockchain splits into two, creating two different Blockchains (the equivalent of two new digital currencies) with a shared transaction history. When this happens, the number of Bitcoins which were held on the single Blockchain are replicated onto the two new Blockchains formed. By common consensus amongst the Bitcoin community, it is determined (i ) which of the two Blockchains has is agreed to be Bitcoin for all intents and purposes – BTC Blockchain, and (ii) whether the other Blockchain is stable enough to create a new digital currency

WHAT IS ARUBEX STAND ON BITCOIN FORKS?

At the moment Arubex does not support Bitcoin Forks automatically. This is due to security, design, and stability issues. For this reason, when a Bitcoin Fork is about to happen, we abide by the following process:

1. We will use reasonable endeavours to alert our customers that an upcoming fork is about to take place, although there may be many forks, and some may not be easily predicted – please see question 4 in this eventuality;

2. Arubex Services may be shut down and rendered temporarily unavailable for a short period before and after the hours when the fork takes place;

3. Once the fork takes place, the stable fork in the blockchain which the majority of the Bitcoin community agree by consensus is the Bitcoin blockchain (which may be a new chain, or it might be the pre-existing one);

4. Our Services will then be resumed on the blockchain which is agreed to be the Bitcoin blockchain for all intents and purposes.

5. Arubex will take a snapshot of all customers which hold a balance in their Arubex wallet account at the time of the fork, and it is only these customers which would be eligible for withdrawal equivalent digital currency should this be the result of a fork, and should Arubex decide to support that blockchain. Arubex holds resulting digital currency balances for and on behalf of its customers at the time of the split.

CAN I HAVE ACCESS TO MY BITCOINS STORED IN MY ARUBEX WALLET WHILST THE FORK IS HAPPENING?

No, a few hours before the Fork takes place our Services will be rendered unavailable until a common consensus is reached on which blockchain has retained the Bitcoin BTC currency. For this reason, if you wish to have access to your Bitcoins whilst the Fork is happening, you are advised to withdraw your Bitcoins to an external wallet at least five (5) working days prior to the scheduled Fork.

Furthermore, Arubex offers no guarantee that it will develop and support the means to withdrawal resulting digital currencies after each and every Fork takes place. Arubex reserves the right to choose to support only those blockchains which are stable, secure, do not disrupt its business and retain the original blockchain transaction.

For this reason, Arubex does not guarantee the means to withdraw all resulting currencies, and advises its customers to be vigilant and to transfer balances to supporting wallets in the event they wish to do so.

You will only receive digital cash for the amount of bitcoin in your account at the time of the fork. Pending orders would not be included in this as the bitcoin would not have been available in your account at the time of the fork.

WHAT HAPPENS IF THERE IS AN UNSCHEDULED FORK?

Emergency forks/upgrades are possible and they have happened in the past. In this case Arubex will alert our customers as soon as reasonably practicable, and then follow the same procedure as with the planned fork.

Arubex may go offline for some period of time to protect security and stability of all customer funds and operations and then act on one of the following:

  • we may choose to ignore the fork or
  • we may choose to support the other or resulting chain as a different cryptocurrency.

On the other hand, the chain which is regarded by the majority of the Bitcoin community as being the Bitcoin chain, will be supported by Arubex to allow withdrawals of funds as usual.

WILL MY BITCOINS BE SAFE WHILST THE FORK IS HAPPENING?

Yes, your Bitcoins held in your Arubex wallet shall be safe whilst the Fork is happening, they will just be temporarily unavailable.

WILL Arubex SUPPORT BITCOIN FORKS IN THE FUTURE?

At the moment Arubex does not have plans to support additional forks given the uncertainty surrounding this subject. Notwithstanding this, Arubex platform is being developed for capabilities supporting multiple cryptocurrencies and we are likely to support a number of different cryptocurrencies in the very near future.

WILL A BITCOIN FORK AFFECT THE VALUE OF MY BITCOINS?

Whilst the rate of Bitcoin is always fluctuating, Forks usually cause a fluctuation in the value of Bitcoin, yes. Kindly make reference to our Risk Warning Policy to read about the risks associated with Buying, Selling and Trading Bitcoins. The price and volatility is subject to market forces over which Arubex has no control and accepts no liability.

HOW WILL I BE NOTIFIED?

Where Arubex considers that a notice is required for upcoming forks, we will post updates on this website so please check backfor news and information. In some instances, Arubex will also send out an email notification.