# Chain and Wrapper Event Policy

**Version 0.2 DRAFT · 29 September 2026 · ETP Foundry (formerly CrossDesk)**

> **Governing text.** [ETP Foundry Methodology v1.0](/documents/methodology-v1.0.md) (28 September
> 2026) is the sole governing methodology. This policy applies it to chain and wrapper events;
> where the two differ, Methodology v1.0 governs. It supersedes
> [version 0.1](/documents/chain-event-policy-v0.1.md), which stays published, marked superseded.

> Applies to every benchmark in the ETP Foundry Canton Series. Nothing here is in force
> until the first value published above tier 0.

**Three words, one meaning each** (Methodology §3A.7):
- **`NO FIXING`**: no value is published for the strike, with the reason. A gap is published as a gap.
- **`EXCEPTIONAL`**: a move of more than Y (10%) against the previous value, **published** and
  flagged. It has no other meaning in this policy.
- **`EVENT-<type>`** (for example `EVENT-FORK`, `EVENT-DEPEG`): a flag that a chain or wrapper
  event is in progress for the asset. It is shown on every value published while it holds.

CF Benchmarks publishes a Hard Fork Policy because chain events break single-asset
benchmarks and the rules must exist *before* the event, not be invented during it. Our
assets are **wrapped and represented** — cBTC, cETH, tokenised equities — so we face the
fork case **plus** four failure modes CF does not: reserve shortfall, registrar failure,
registry migration, and a de-peg of the representation from its underlying.

**[FIXED] The governing principle:** during a chain or wrapper event, **the correct output
is usually `NO FIXING`, not a brave guess.** An administrator that keeps printing through
an event it does not understand is the administrator that gets blamed for it.

---

## 1. Hard fork of an underlying chain

### 1.1 Definition
A hard fork event has occurred if **all three** hold (CF's definition, adopted):
1. two or more diverging blockchains exist post-fork sharing the same pre-fork chain,
2. the tokens on the post-fork chains are **non-fungible across chains**, and
3. the respective chains are actively validated such that transactions process at
   reasonable speed.

### 1.2 Significance test [ADOPT]
A new token is **significant** if it meets **all** of the following on **at least 2 of the
first 7 days** after the fork (CF's test, adopted unchanged — it is proven and the burden
of proof sits in the right place):

1. The new token pair trades on **at least 2 constituent venues**.
2. There are **at least 100 trades** in the new pair across all constituent venues.
3. The new pair trades at **≥10%** of the combined price of the original and new pairs.
4. The new pair's volume is **≥10%** of the combined volume of the original and new pairs.

**If significant:** we initiate calculation of a benchmark for the new token pair, and the
original benchmark continues to track the original token.
**If not significant:** no new benchmark. Starting one anyway is at the administrator's
discretion and requires committee approval.

### 1.3 During the fork window [ADOPT]
- From the fork block until the significance test resolves (max 7 days), any value published
  for the affected asset carries the flag `EVENT-FORK`. It is published only if it passes every
  gate of Methodology §6.2 and reaches K of N; otherwise `NO FIXING`.
- If venues disagree on which chain carries the original ticker, the asset moves to
  `NO FIXING` until at least two constituent venues agree on the symbol.
- **The administrator does not decide which chain is "real."** The constituent venues'
  symbol assignment decides it. We follow the market; we do not lead it.

---

## 2. Wrapper events (the part CF does not have)

A wrapped asset is a claim. These are the ways a claim breaks.

### 2.1 Reserve shortfall [ADOPT]
The reserve attestation shows less than the issued supply, or an attestation is **missed at
its stated cadence**.

| Condition | Action |
|---|---|
| Condition | Action |
|---|---|
| No passing issuer snapshot within the asset's freshness limit (a missed or late attestation, or a silent issuer) | Issuer gate not met → **`NO FIXING`** (off-hours) / tier 4–5 (OFFICIAL); never tier 3 (Methodology §6.2, §3A.7 rule 6) |
| Shortfall attested, **any size** | Issuer gate refused → **`NO FIXING`** (off-hours) / tier 4–5 (OFFICIAL); licensees notified the same day |
| Redemptions shut, or mint/burn paused | Issuer gate refused → as above |

**[FIXED]** A shortfall is never absorbed into the price, and there is no "wrapper factor
adjustment" for a small one: the gate is reserves ≥ supply (Methodology §4.3). While the gate
is refused, tier 3 (reference × par) is never published, and a prior value is carried forward
(tier 4) only if it is under 24 hours old (§6.2).

### 2.2 De-peg [ADOPT]
The representation trades persistently away from the value of its underlying claim.

- Deviation > **2%** from the implied claim value, sustained across **3 consecutive
  fixings** → flag `EVENT-DEPEG` on every value published, notify signers. The value itself is
  still the determination from the venues; the flag does not change it.
- Deviation > **10%** sustained → the administrator convenes the committee within 1 business
  day and refers the question of continuing or ceasing the benchmark to the oversight function
  (Methodology §9.1, §9.7). The value keeps coming from the venues, flagged `EVENT-DEPEG`; it is
  never adjusted by a factor to close the gap.
- **We publish the de-peg.** A benchmark that hides a discount is worse than no benchmark:
  the lender relying on it is the party who gets hurt.

### 2.3 Registrar or issuer failure [ADOPT]
Insolvency, loss of keys, halt of mint/redeem, or withdrawal of the registrar.
- **Immediate `NO FIXING`** for that asset.
- Committee convenes within 1 business day.
- If redemption is not restored within **30 days**, the asset is removed from every basket
  at its last reliable price, and single-asset benchmarks on it enter cessation (Methodology
  §9.7: at least 60 calendar days' notice, enforced on-ledger).

### 2.4 Registry or network migration [ADOPT]
A registrar migrates the instrument to a new registry, instrument id, or network.
- The asset's identifying tuple *(network, registrar, instrument id, redemption path)* is
  updated by **committee approval**, announced **before** it takes effect.
- Continuity is preserved: the benchmark continues without a level break, the divisor is
  adjusted if needed, and the migration is recorded in the version history.
- If continuity cannot be established, the old asset is removed and the new one treated as
  a new constituent subject to full eligibility (Methodology §4.1a, §5.2).

### 2.5 Canton domain / synchronizer events [ADOPT]
A synchronizer outage, domain migration, or loss of a participant node.
- **Nothing reaches the tape without K of N.** If the ledger cannot record the signatures,
  the strike is **`NO FIXING`** for off-hours fixings, and the OFFICIAL fallback waterfall
  applies (tier 4, the prior committee value flagged, or tier 5); the determination is kept in
  the record and the outage disclosed.
- If signers cannot reach the ledger to sign, the same applies: fewer than K signatures is
  never published as a fixing.
- **Ledger unavailability is never a reason to alter a value**, only to delay its recording.

---

## 3. Underlying corporate and market events

For tokenised equities, Methodology v1.0 (§3A.7 rule 6, `corporateActionPending`) governs
corporate actions. In addition:

| Event | Action |
|---|---|
| Underlying market halt, single name | `NO FIXING` for that asset; a basket constituent held at its last reliable price, flagged |
| Underlying market holiday | Normal — this is the case the off-hours signed fixings (specified, not built) exist for |
| Trading suspension > 5 days | Remove from indices at last reliable price |
| Wrapper stops passing dividends through | Material methodology change (Methodology §9.6); factsheet updated; **licensees notified** |

---

## 4. Notification

On any event in this policy: signers notified immediately, licensees within 1 business
day, a public notice on etpfoundry.com, and a record for the oversight function's review
(Methodology §9.1; until one is constituted, the administrator's published review).

## 5. Definitions

**Day** — 00:00:00 to 23:59:59 UTC.
**Original token / new token** — as recognised by the constituent venues through the
trading symbols they operate, not by us.
**Constituent venue** — a venue meeting Methodology §4.1a and §5.2.
**Cadence** — the attestation frequency stated in the asset's factsheet.

## 6. Version history

| Version | Date | Changes |
|---|---|---|
| 0.1 | 22 Sep 2026 | Initial draft. Fork test adopted from CF Benchmarks Hard Fork Policy v7.3; wrapper, registrar, migration and Canton sections original. Superseded by 0.2. |
| 0.2 | 29 Sep 2026 | Conformed to Methodology v1.0: `EXCEPTIONAL` means only a move larger than Y; missed attestation, outage and issuer-gate failures are `NO FIXING` / tier 4–5; forks and de-pegs flagged `EVENT-<type>`; shortfall of any size refuses the issuer gate (no wrapper-factor adjustment); nothing published without K of N. |