The Ethereum network is undergoing one of the most significant transformations in its history—the Merge. As this major upgrade approaches, it's essential for users to understand how it may impact their assets and services on OKX. This comprehensive update outlines key timelines, potential scenarios, and how OKX is preparing to ensure a smooth transition for all users.
Understanding the Ethereum Merge
The Ethereum Merge marks the shift from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) model. This upgrade enhances network sustainability, reduces energy consumption by over 99%, and sets the foundation for future scalability improvements.
The Merge occurs in two critical phases:
Bellatrix Upgrade (Consensus Layer)
Scheduled for September 6, 2022 (UTC), the Bellatrix upgrade prepares the Beacon Chain to become "Merge aware." This step ensures that the consensus layer is ready to integrate with Ethereum’s main execution layer.
Paris Upgrade (Execution Layer)
Expected around September 15, 2022 (UTC), the Paris upgrade triggers the actual transition. When Ethereum’s Total Terminal Difficulty (TTD) reaches 58,750,000,000,000,000,000,000, the PoW chain will cease, and the execution layer will merge with the Beacon Chain—officially completing the Merge.
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Preparing for Potential Outcomes
While the Ethereum Foundation anticipates a seamless transition, hard forks can sometimes result in new tokens. OKX has established clear protocols to manage both likely scenarios:
Scenario A: No New Token Created
If no fork occurs, OKX will resume all ETH and ERC-20 deposit and withdrawal services once network stability is confirmed. Cross-chain bridge functionality will also be restored without delay.
Scenario B: New Forked Token Emerges
In the event of a hard fork creating a new PoW-based token:
- The PoS chain token will retain the ETH designation on OKX.
- The legacy PoW chain token will be treated as a forked asset.
- Users’ ETH balances will be snapshotted prior to the Paris upgrade.
- Forked tokens will be distributed at a 1:1 ratio based on holdings at snapshot time.
- These tokens must go through OKX’s standard listing review process before trading is enabled.
⚠️ Important: If you hold outstanding ETH loans—including negative equity in multi-currency margin mode—you may be required to repay using forked tokens under Scenario B. We strongly recommend repaying loans in advance to avoid complications.
Impact on Trading Services
OKX is committed to maintaining market continuity while safeguarding user assets during high-volatility events.
Spot Trading
Unaffected. ETH and ERC-20 spot markets will remain fully operational.
Margin Trading
- Cross and isolated margin trading for ETH pairs continues as normal.
- However, ETH margin borrowing and VIP borrowing services will be temporarily suspended.
- Interest rates may be adjusted ahead of suspension based on market conditions.
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Futures & Perpetual Swaps
No disruption expected for:
- ETHUSDT and ETHUSD perpetual swaps
- ETHUSDT and ETHUSD futures contracts
Options Trading
ETHUSD options trading remains unaffected.
Due to potential price volatility during the Merge, OKX may implement additional risk management measures, including:
- Adjustments to margin tiers for ETH derivatives
- Changes to margin discount rates in multi-currency and portfolio margin modes
- Modifications to funding rates and price limits for perpetual swaps
- Updates to index price components and mark prices for ETH contracts
Users are advised to reduce leverage, close high-risk positions, or increase collateral in advance.
Grow Services: Savings, Staking & More
Your participation in yield-generating products remains protected, though some temporary adjustments apply.
Savings, Staking, Dual Investment & Smart Gain
These services are not affected by the Merge. Your staked ETH will be included in any pre-fork snapshot. However, heightened price volatility during contentious forks can impact returns—exercise caution and monitor your exposure.
Loan Services
ETH-backed loans continue normally. Collateral and liabilities will both be snapshotted. In the event of a fork, repayment obligations may extend to forked tokens.
ETH 2.0 Staking
- New staking subscriptions will be paused on September 6 and September 15, 2022 (UTC).
- BETH rewards will be distributed as usual.
- Whether staked ETH qualifies for forked token claims depends on how the PoW chain handles ETH2.0 smart contracts. A separate announcement will clarify eligibility.
DeFi Mining
- Project subscriptions remain active.
- On-chain staking and redemption functions will be temporarily suspended on upgrade dates.
- Redemption processing and profit distribution may experience delays post-Merge.
Fiat & Conversion Services
Both fiat on-ramp services and crypto conversion features will operate normally throughout the Merge. You can continue buying ETH with fiat or converting between cryptocurrencies without interruption.
Frequently Asked Questions (FAQ)
Q: Will I lose my ETH during the Merge?
A: No. The Merge is a protocol upgrade, not a token swap. Your ETH balance remains safe. If a fork occurs, you may receive additional tokens, but your original ETH will not be lost.
Q: Do I need to take any action before the Merge?
A: It’s recommended to repay any open ETH loans and consider withdrawing funds if you plan to interact directly with a potential forked chain. Otherwise, OKX handles technical aspects automatically.
Q: When will deposits and withdrawals resume?
A: After confirming network stability post-upgrade. We’ll announce exact timing via official channels.
Q: Can I still trade ETH during the Merge?
A: Yes. Spot, futures, options, and perpetual swap trading will continue uninterrupted.
Q: What happens to my staked ETH if there’s a fork?
A: It depends on how the forked chain treats staking contracts. We’ll provide detailed guidance in a follow-up announcement.
Q: How does OKX decide whether to list a forked token?
A: All forked tokens undergo our standard listing review, evaluating security, community support, liquidity, and compliance before being approved for trading.
👉 Secure your assets and trade confidently through major blockchain transitions.
The Ethereum Merge represents a pivotal moment for decentralized technology. By planning ahead and relying on secure platforms like OKX, users can navigate this evolution with confidence. Stay informed, manage risks proactively, and take advantage of new opportunities in the upgraded Ethereum ecosystem.