As it was announced, the Liquidation Committee has prepared answers to frequently asked questions delivered by moderators who collected them in various chat groups, and they are available at https://ow.ly/e89450PnBO2.
Questions that may have been missed or may emerge till the redemption conclusion can be sent on the following email address [email protected] and the answers will be added to the FAQs update(s).
We would like to take this opportunity to remind you of the importance of relying on communication from official sources only. This ensures that you receive accurate information and avoids any potential misinformation that may be circulating.
Thank you for your cooperation and understanding.
Last Updated 18 Aug 2023
Can the approximate time frame for the individual tasks or group of tasks be provided?
The liquidation process involves several tasks, each with its own estimated time frame. Here are the approximate time frames for the key tasks:
Liquidation of the corporate entities: The liquidation process for the corporate entities is expected to take 6-8 weeks because it involves posting public notices to creditors and disposition of any assets and liabilities. However, this process will be carefully timed to coincide with the Hector Network treasury liquidation. It is important to ensure that both the corporate entities and the Hector Network treasury are liquidated simultaneously to prevent Hector Network from losing the ability to interact with off-chain service providers once the entities are liquidated. This process will be overseen by a third-party liquidator to ensure its transparency and is critical in ensuring that all assets of Hector Network are distributed to the tokenholders.
Time period for tokenholders to claim their corresponding share of the Hector Network’s treasury: Tokenholders will have a 3-month registration window for their wallets. After the registration window, they will be given an additional 2 months to claim their share of the treasury. This extended period has been designed to allow all tokenholders, including those who may not actively follow the situation, sufficient time to make their claims. The goal is to ensure that nobody is disadvantaged during the redemption process.
Notice period to remove tokens from the Fantom and Casper validators: To facilitate the redemption process, there is a notice period of 3 months to remove tokens from the Fantom and Casper validators.
Notice period for Bitmart and Bitrue centralised exchanges: Bitmart and Bitrue centralised exchanges require a 2-month notice to remove tokens.
Fulfilment of existing contractual obligations: Fulfilling existing contractual obligations is expected to take between 1 to 3 months. The exact time frame may vary depending on the complexity of the contracts and agreements involved. These obligations involve, for example, the termination and offboarding of external developers responsible for the development of the technical infrastructure with various termination notice periods.
Audit of the redemption contracts by Certik and Hacken: The estimated time for the audit of the redemption contracts by Certik and Hacken is yet to be determined but we expect it to take approximately 2 to 3 months. This audit is a crucial step in ensuring the security and accuracy of the redemption process.
Winding down of infrastructure, planning, architecture, development and deployment of redemption contracts and interface: The estimated time for winding down all infrastructure, including emissions plan, farming, liquidity pools, development and deployment of the redemption contracts and interface dApp, is still to be determined, but we currently estimate it to take 4 to 5 months which may be subject to change. These tasks involve meticulous planning and execution with multiple dependencies that need to be effectively managed. This is crucial in guaranteeing a seamless transition and ensuring the secure facilitation of redemption procedures for all variants of the HEC token and their respective value compositions. Together with the abovementioned audit, this step is intended to create confidence that the redemption mechanism cannot be abused.
It is important to note that not all tasks can be completed in parallel, as certain tasks are sequential and depend on the completion of others. The Liquidation Committee is diligently working on the redemption process, and some timelines are subject to change due to unforeseen circumstances.
Who, from the Hector Network team will be included in the liquidation process and with what role?
The liquidation process will be overseen and run by the Liquidation Committee, which consists of:
Legal Counsel: Sparring
Smart Contract Auditors: Certik and Hacken
BVI and RMI Liquidators: To be assigned by the Legal Counsel
Financial Statements and Asset Liquidation: Head of Finance
Infrastructure Closure: Head of Development
For more information, you can visit: https://t.me/hectornetworkann/1553.
What will happen with the treasury? Will it stay on Fantom or be transferred to the other chain and what tokens will be used for the redemption?
As part of the redemption process, the tokens held in the treasury are being swapped for USDC and USDT on Ethereum. The proposed redemption will be in one of these stablecoins issued on Ethereum.
Currently, 60% of the treasury assets are held in stablecoins and this amount will continue to steadily increase in the coming weeks as tokens are unlocked as well as swapped into stablecoins as the market liquidity permits and 24% are in Ethereum.
91% of assets are held in the Top 5 tokens and stablecoins.
The assets are distributed across different chains as follows: 85% on Ethereum, 7% on Fantom, 4% on Binance Smart Chain, and 4% on Bitcoin and other chains.
Transparency on the tokens held in the treasury is still provided through the dashboard accessible at the URL: Dashboard — Hector Network
Note: This question has been updated in Redemption FAQs Update #1.
What are the total approximate expenses and payment obligations needed to be settled prior to the redemption?
There are approximately $1.2 million in payment obligations arising from partnership agreements, software development, legal and operating expenses, and other contractual obligations. This amount also includes the estimated cost of disposition and completion of the token redemption. Over 50% of these obligations stem from agreements dated in 2022 and Q1 2023 but must be honoured to avoid disputes.
What $USD value can I expect to get for 1 HEC?
The value tokenholders will receive for 1 HEC in USD will depend on the token value of the treasury assets at the time of redemption, after deducting all contractual, statutory, legal obligations, and liquidation costs that must be fully settled.
The dashboard of the treasury assets is still accessible at the URL https://beta.hector.network/ and provides transparency on the tokens held in the treasury.
What token(s) will people receive in the redemption?
Redemption is anticipated to be provided in the form of USDT or USDC on the Ethereum blockchain.
What will I need for claiming funds in the redemption?
Tokenholders will need to keep their HEC tokens after the snapshot has been taken in order to claim the redemption. The redemption process will involve a multi-step approach. In the first phase, tokenholders will be required to register their wallets with various versions of their HEC tokens, including FNTF. Once the registration period is concluded, and their wallets are whitelisted into the redemption contract, tokenholders will then need to sign a transaction to send their tokens to the redemption contract. As a result, they will receive the redemption value in the form of USDT or USDC tokens on the Ethereum blockchain.
Do I have to keep my HEC after the snapshot has been taken in order to claim?
Yes. For more details, please refer to the answer provided to a previous question.
What should I do with my staked, wrapped HEC and HEC deposited in the Farms?
It is essential to follow the instructions announced by the Liquidation Committee on the official channels. The Liquidation Committee has already communicated and will continue to provide guidance on the necessary actions to be taken. To check announcements posted so far, please visit one of the following channels:
Future information will also be posted on the website starting next week.
Will unclaimed farm and staking rewards participate in the redemption?
For any HEC tokens that have been locked before the cut-off block number that was announced, a comprehensive plan is currently being developed to cater to all redemption situations that fall within the specified cut-off block number. This is a complex aspect of the redemption system, and further information will be provided after the process finalisation.
What will happen with the USDC and TOR in the Farms?
All liquidity will be removed.
How much time will users have for claiming in the redemption and what will happen with unclaimed funds?
As described in the answers to previous questions, the redemption process will involve a multi-step approach. In the first phase, tokenholders will have a 3-month window to register their wallets. Once the registration period is concluded, and wallets are whitelisted into the redemption contract, tokenholders with whitelisted wallets will have an additional 2 months to claim their share of the treasury. Any funds that go unclaimed during the registration phase will be proportionally redistributed among the tokenholders with whitelisted wallets so that no funds are left over at the end of the redemption process.
If my $HEC tokens were stored on a ledger (or any other offline hardware wallet) at the time of the snapshot, were they still considered for the snapshot?
If $HEC tokens were stored on a ledger at the time of the snapshot, they were still considered for the snapshot. The snapshot is a record of a blockchain block number, so tokens held by tokenholders will be included in that block, regardless of the wallet they were stored in. This does not apply to exchange accounts.
The liquidation is only talking about Treasury, but what are they going to do with the code and documentation (that's HN IP)? Will that be sold (to increase the payout to holders), made open to holders or will the remaining liquidation team keep that for themself?
The future of Hector Network's intellectual property (IP), is currently being considered as part of the liquidation process. The completed IP is undergoing review and valuation. Additionally, third-party auctioneers have been contacted to explore the potential sale of the intellectual property. The aim of this process is to return as much value as possible to the tokenholders.
At this stage, no definite material resale value for the IP can be confirmed, and other options for auctioning the intellectual property are being explored. The handling of the IP will be determined based on the outcomes of these evaluations and auctioning efforts.
As more information becomes available, updates will be provided through the official channels.
What will happen to my loans currently active in the Hector Institute?
All active loans in the Hector Institute should be settled, and assets withdrawn prior to the end of the redemption registration window. Please be aware that failure to withdraw related tokens in a timely manner may result in the loss of your assets. For more information, please visit: https://t.me/hectornetworkann/1560
- Was my ownership of wsHEC, sHEC tokens taken into consideration during the
snapshot for further use?
- Do I need to unwrap the current tokens that I am holding prior to the redemption?At this moment, tokenholders are advised to keep their current tokens as they are until the release of further instructions posted on the official channels. Once the redemption process mechanism has been designed, verified, and audited, the Liquidation Committee will provide guidance on the necessary actions to be taken.
- Following on from the above question, what is the process of selling my wrapped
wsHEC and HEC tokens can be swapped on a decentralised exchange such as SpookySwap (https://spooky.fi/#/swap).
Please bear in mind that as part of the Hector Network liquidation, tokenholders of HEC token and its variants acquired before the snapshot will be able to participate in the redemption and claim a part of the Hector Network treasury. More information about redemption requirements can be found in the answers provided to questions 7, 8, and 9. At this moment, tokenholders are advised to keep their current tokens as they are until the release of further instructions posted on the official channels. Once the redemption process mechanism has been designed, verified, and audited, the Liquidation Committee will provide guidance on the necessary actions to be taken.
- I've just now seen the situation with HEC. I still have some HEC on my FTM wallet.
I'm not able to swap HEC to USDC on your site. Is there still a way to swap it?
As part of the liquidation process the swap functionality on the dApp was disabled as the project is in the process of winding down. HEC tokens can be swapped on a decentralised exchange such as SpookySwap (https://spooky.fi/#/swap). Please bear in mind that as part of the Hector Network liquidation, tokenholders of HEC token and its variants acquired before the snapshot will be able to participate in the redemption and claim a part of the Hector Network treasury. More information about redemption requirements can be found in the answers provided
to questions 7, 8, and 9. At this moment, tokenholders are advised to keep their current tokens as they are until the release of further instructions posted on the official channels. Once the redemption process mechanism has been designed, verified, and audited, the Liquidation Committee will provide guidance on the necessary actions to be taken.
- As the current Emission Plan is not due to unlock for the next 90 days, what
should I do with $HEC?
More information about redemption requirements can be found in the answers provided to questions 7, 8, and 9. At this moment, tokenholders are advised to keep their current tokens as they are until the release of further instructions posted on the official channels. Once the redemption process mechanism has been designed, verified, and audited, the Liquidation Committee will provide guidance on the necessary actions to be taken.
- As HEC-USDC and HEC-TOR farms have stopped emitting, when will the liquidity
pool locked for 3 years unlock?
The liquidity pool will unlock before the redemption period starts.
- I have sHEC (Binance chain) stored on my ledger. How do I withdraw my assets if
the https://beta.hector.network/ site does not allow me to unstake HEC and
sHEC was never available on the Binance chain. Please check the version of the HEC token you possess and verify the platform where you have deposited it. It's essential to ensure that you are using the correct version of HEC and have it deposited on the appropriate blockchain to avoid any potential issues with withdrawing.
- Hello, I'm sorry Hector had to close down. I NFT locked my tokens over 6 months ago and I'm wondering what I need to do to be included in the liquidation. The time lock is over and I could move them back to my wallet. I also have accrued about 45 or 50 more hec from that but i have never claimed it. I just figured I would let it sit there until I wanted to unlock and claim them.
At this moment, tokenholders are advised to keep their current tokens as they are until the release of further instructions posted on the official channels. Once the redemption process mechanism has been designed, verified, and audited, the Liquidation Committee will provide guidance on the necessary actions to be taken. Also, please refer to the answers provided to questions 9. and 10.
- What is the next step for token holders to start the redemption process?
At this moment, the most important thing is to stay updated and follow instructions from the announcements posted only on the official channels to avoid misinformation. Information about the redemption process can be found in the answers to previously answered questions, and once the redemption process mechanism has been designed, verified, and audited, the Liquidation Committee will provide guidance on the necessary actions to be taken.
- My brother has his money in TOR / USDC / DAI farm, what would he need to do to
get that out?
crvLP tokens created from TOR / USDC / DAI and deposited into the TOR / USDC / DAI farm at https://app.hector.network/farm can be withdrawn from the farm as TOR or DAI or USDC. Please bear in mind that the TOR redemption process is still under review, and further information will be provided after the process is completed.
- I apologise for having to contact via this method however all other forms of communication with the company have been disconnected by the steering committee. As have some other important holder owned information channels such a medium which held a lot of the legal information regarding the governance of the company.However, the reason for my email is as follows.I would like to ask when and where we will be able to redeem our TOR from the treasury. For your reference, I have included some statements made by employees at the time in the official Hector Network discord, as well as statements from the company on its official methods of communication such as snapshot and its cmc page.I have also included a saved copy of HIP 16 direct from snapshot (Snapshot) where it states the following. Attached Documents: TOR backing cmc.pdf TOR backing.JPG TOR HIP.pdf
As of July 17, 2023, at 1600 UTC time, Hector Network officially entered into liquidation mode with a majority vote (83.3%) from the Hector Network community https://t.me/hectornetworkann/1552). As a result, all operations of Hector Network have ceased to exist and are currently undergoing a shutdown process. As part of the liquidation, all social media channels owned by Hector Network will also be shut down at the conclusion of the liquidation process. Due to the lack of personnel required to manage all social media channels created prior to the liquidation period, and to ensure efficient and effective communication with all parties involved during the liquidation process, the following measures have been implemented:
a. Social media channels that were more frequently used have been kept in announcement mode, where all important liquidation updates will be communicated by the Liquidation Committee.
b. For any questions or clarifications related to the redemption process, the email address [email protected] has been established and announced to the community.
26.2. Regarding the TOR token, since its launch, several changes have been made to the TOR mechanism, all of which have been announced and communicated. For detailed information about the minting, redeeming, and backing of TOR, please refer to the announcements posted on June 1st, 2022 (https://discord.com/channels/902514779690790932/903000513988136990/981640143104540742), September 1st, 2022 (https://discord.com/channels/902514779690790932/903000513988136990/1014912533737512991) and September 22nd (https://twitter.com/Hector_Network/status/1572964075541258246?s=20). The TOR redemption process is still under review, and further information will be provided after the process is completed.
- There hasn't been any clear communication around how the liquidation and redemption process will impact TOR? Was this not an asset supported by the Hector treasury as well? Shouldn't those of us who were holding TOR along with HEC be entitled to treasury assets accordingly?
Please refer to the answer provided to a previous question.
- What should I do with my current TOR tokens?
More information will be provided in the future updates regarding TOR tokens. The TOR redemption process is still under review, and further information will be provided after the process is completed.
- I would glad to know about how will be managed Oikos Profit Agreement?
There is no profit agreement as the game was in pre-production at the time of the liquidation vote and no separate legal entity was formed.
Please note that the information provided in this FAQ is subject to change and will be further detailed in the liquidation process.
Stay tuned for official updates and announcements through Hector Network’s official channels.
Questions submitted to [email protected] will be updated here and not answered directly via email.