Inlock successfully completed the first phase of the “Early Payout” program on the 1st of December, 2022. The program focused on clients with significant exposure to volatile assets. During the registration process for the “Early Payout”, we received a lot of feedback regarding the interest to develop a similar option for clients who typically prefer to hold assets in dollar-based stablecoin on the Inlock platform. In order to develop this option, it was necessary to first close the previously announced “Early Payout” program, as the outcome of this was also an important aspect of being able to assess the impact of a broader “Early Payout” offering on currently registered assets. 

Today, we are announcing the second phase of the “Early Payout” program, where our clients will have the opportunity to be exempted from the service suspension to withdraw their assets from the Inlock platform with a loss deduction. The second phase is open to all clients who did not participate in the first phase.

The aim of the measure is to extend the “Early Payout” option to our entire client base so that no one is disadvantaged compared to others. We have also ensured that the Early Payout option does not have a negative impact on registered customer assets. We have therefore aimed to prevent the second phase from negatively affecting the current loss given default for those clients who do not wish to use the Early Payout option, and to prevent from negatively affecting the assets under management to the extent that we cannot maintain our services such as swap or closing the loans by selling collateral.

However, considering that the current offer is mostly intended for clients who hold a significant proportion, or even exclusively, of dollar-based stablecoins on the platform, we can only offer the “Early Payout” option at a higher loss allowance. This is due to the majority of the losses incurred being in dollar-based stablecoins, so we can only offer a higher loss allowance to ensure that clients who do not wish to take advantage of this option are not actually adversely affected by the Early Payout option.

THE EARLY PAYOUT PROGRAM (second phase)

Under the Recovery and Restructuring Plan of the Inlock platform, the company intends to make a restricted and limited offer to clients who wish to take advantage of the “Early Payout” program. The offer is made to clients who are unable or unwilling to wait for the platform to fully restore their services due to a change in their life situation or an irreversible loss of confidence. The offer is conditional and limited in amount per individual. The offer must be accepted by the affected clients by the 10th of December 2022 12:00 (CET) at the latest.

The restricted and limited offer is available to clients who did not use the “Early Payout” option before. The main objective of the action is to allow these clients to reduce their exposure substantially to crypto assets that are currently locked on the platform. 

With this restricted and limited offer, our clients can initiate an immediate withdrawal, whereby the amount to be transferred will be reduced by 35%. Under this option, our client waives their right to claim the value of the deducted assets in any way at a later date. 

Withdrawals can only be initiated in USDC stablecoin from the platform, however, clients can choose to increase the withdrawable amount using the platform’s swap feature. The latest date to do so is the 10th of December 2022, 12 PM (CET).

If a client wishes to take advantage of our offer, they must indicate it through their account on the Inlock platform. The maximum amount that can be withdrawn is 10,000 USDC per client. If the client’s USDC balance exceeds 10,000 USDC at the time of withdrawal, then 10,000 USDC will be deducted from the client’s USDC balance.

There is no possibility of partial USDC withdrawal. If the USDC balance of the client choosing this option does not exceed 10,000 USDC, the full USDC balance will be withdrawn.

Clients who initiate or accept an internal transfer after the announcement of this restricted and limited offer will automatically lose their right or their already accepted claim will be rejected!

We would like to reassure those clients who are unable or do not wish to participate in this offer, but are concerned that early payout may reduce the amount owed to them or in any way affect the liquidity of the platform. When developing the Early Payout option, we have specifically taken measures to ensure that no such risk exists.

The remaining debt of customer assets will be settled on the basis of the Recovery and Restructuring Plan by the platform operator to its clients.

Clients may submit their request for the early payout via the Inlock web application between the 5th of December, 2022 and 12 PM (CET) on the 10th of December, 2022. Clients who wish to take advantage of the offer will receive their payments during the third week of December 2022 to the crypto wallet address specified in the request that is capable of accepting USDC.

Details of the payment:

  • We can only process withdrawals to Ethereum/ERC20 addresses above 100 USDC, and requests below this amount can only be sent to Binance Smart Chain/BEP20 addresses. 
  • Only USDC coins will be paid, other coins, tokens, including other stablecoins must be converted to USDC.
  • Coins or tokens that are not convertible to USDC or whose conversion is suspended (including ILK tokens) will not be eligible for our “Early Payout” program announced in the current offer. 
  • Any remaining balances after the “Early Payout” will continue to be managed on the Inlock platform under the limitations currently in force.

Automatic conversion of small value balances: clients who choose the “Early Payout” option accept that the system automatically converts all balances below 30 dollars to USDC prior to the withdrawal, and the swap option is also supported by the platform.

Date of publication of this restricted and limited offer: 5 December, 2022, 11 hours 30 minutes (CET)