AlphaFi enters maintenance mode and begins an orderly shutdown, saying bad debt has been fully covered
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AT A GLANCE
Sui The lending protocol AlphaFi announced an orderly shutdown, stopping new deposits and loans while retaining withdrawals.
Article
Sui The DeFi lending protocol AlphaFi will shut down and has now entered maintenance mode
BlockBeats news,September 26，Sui the DeFi lending protocol AlphaFi announced that it will shut down in an orderly manner and has now entered maintenance mode. Withdrawals remain open, but new deposits and loans are no longer accepted. Some borrowing positions in AlphaLend collateralized by ALPHA are severely undercollateralized, causing the protocol to incur bad debt;Sui the Foundation's security team discovered the issue and 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 canceled,SUI、WAL、DEEP and USDC strategy withdrawals can be credited immediately;ALPHA the vault has also stopped operating and its lock-up period has been canceled.
Original link https://m.theblockbeats.info/flash/369075
Key points
01
AlphaFi has entered maintenance mode and will shut down in an orderly manner.
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The protocol no longer accepts new deposits or loans, but withdrawals remain open.
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Some borrowing positions in AlphaLend collateralized by ALPHA are severely undercollateralized, causing the protocol to incur bad debt.
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Sui After the Foundation's security team discovered the issue, it worked with the project team to address it. The announcement said that the bad debt had been fully covered and that the protocol remained solvent.
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The announcement recommended that users close their positions and withdraw their assets.
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The WAL vault lock-up period for Slush Strategies has been canceled,SUI、WAL、DEEP and USDC strategy withdrawals can be credited immediately;ALPHA the vault has stopped operating and its lock-up period has been canceled.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
AlphaFi is a lending protocol in the Sui ecosystem. It found that some borrowing positions collateralized by ALPHA were undercollateralized and had generated bad debt, and therefore decided to stop new deposits and new loans. Users can still withdraw. The announcement said that the bad debt had been covered, but users should still close their positions and withdraw their assets.
Why it matters to readers
The protocol shutdown will affect users' ability to continue depositing, borrowing, and using related vaults; the announcement also stated that withdrawals remain open and the bad debt has been covered, and users should pay attention to closing their positions and withdrawing their assets.
If you have assets deposited in AlphaFi, AlphaLend, or related strategies, first confirm the status of your positions, close them, and withdraw your assets; do not make new deposits or take out new loans.
Risks and unknowns
The evidence does not specify the precise amount of bad debt.
The evidence does not specify the source of funds used to cover the bad debt.
The evidence does not specify whether all users' position closures and withdrawals have been completed.
This information is a project announcement relayed by BlockBeats; the evidence does not include the original project announcement.
Related Developments
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Related concepts
Maintenance mode
This term is not in the glossary yet. Browse related concepts in the glossary.
