AlphaFi enters maintenance mode; bad debt fully covered and orderly shutdown to follow

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Sui ecosystem lending protocol AlphaFi to conduct an orderly shutdown; bad debt fully covered

PANews September 26 According to reports, Sui ecosystem DeFi protocol AlphaFi announced that it will conduct an orderly shutdown and has now entered maintenance mode. Withdrawals remain open, but new deposits and borrowing are no longer accepted. AlphaFi stated that some borrowing positions in AlphaLend collateralized with ALPHA as collateral were severely undercollateralized, resulting in bad debt for the protocol; after the Sui Foundation security team identified the issue, it worked with the project team to address it. The bad debt has now been fully covered, the protocol remains solvent, and user funds are safe. As part of the shutdown arrangements, users should close their positions and withdraw their assets. Slush Strategies users can now withdraw funds directly from Slush Wallet,WAL the vault lock-up period has been removed,SUI、WAL、DEEP and USDC strategy withdrawals can be credited immediately;ALPHA vault has also ceased operations and removed its lock-up period. AlphaFi stated that it will...

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Key points

AlphaFi has entered maintenance mode and no longer accepts new deposits or borrowing, but withdrawals remain open.
AlphaFi stated that some borrowing positions in AlphaLend collateralized with ALPHA were severely undercollateralized, resulting in bad debt.
AlphaFi stated that the bad debt has been fully covered, the protocol remains solvent, and user funds are safe.
AlphaFi is arranging for users to close positions and withdraw assets; the article also states that the withdrawal arrangements for the relevant Slush Strategies funds have been adjusted.
公告建议用户平仓并提取资产。
Slush Strategies的WAL金库锁定期已取消，SUI、WAL、DEEP和USDC策略提现可即时到账；ALPHA金库已停止运行并取消锁定期。

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

The lending protocol will cease new business, and users need to close positions and withdraw assets. The report states that some ALPHA collateralized borrowing was undercollateralized and caused bad debt, which AlphaFi stated has been covered.

Why it matters to readers

The protocol shutdown will affect users' ability to continue making deposits, borrowing, and using the relevant strategies; users need to monitor whether withdrawals and position closures proceed smoothly.

This means the protocol will no longer conduct new business, and existing users should recover their assets according to the arrangements.

Risks and unknowns

The original text is truncated at “will...,” leaving the subsequent shutdown arrangements incomplete.
The evidence does not provide the amount of bad debt covered, the source of funds, or independent verification information.
The evidence does not state whether all users have successfully completed withdrawals.
该信息为BlockBeats转述的项目公告，证据未包含项目公告原文。

AlphaFi enters maintenance mode; bad debt fully covered and orderly shutdown to follow

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