Cloud mining provider Hashmart announces the service termination for BTC mining open-ended contracts. Why so, and how will it go? We tried to answer all the questions you may have in this post.
Why are open-ended contracts terminated?
This is a reluctant measure due to the protracted fall in the cryptocurrency market when the cost of mined coins does not cover the cost of equipment maintenance.
According to clause 13.6. of the Hashmart Terms of Service, “In case of Contract Term for Hashmart Machines is not profitable, i.e., Included Fees exceed Payouts for more than half the time in a consecutive 30 day period, Hashmart may terminate it early to stop losses.” Unfortunately, this period has already been exceeded several times.
Why don’t we terminate 12-month contracts?
For fixed-term contracts, the cost of servicing is fixed for the entire duration of their validity and is included in the cost of the contract. The maintenance fee for open-ended contracts is debited daily from the value of mined coins – the user’s balance cannot go negative. However, there is a risk of contract termination.
Will there be any compensation?
Cryptocurrencies are classified as investment instruments with increased risks, and such compensations as a “deposit insurance system” for the cryptocurrency market do not currently exist. Hashmart is actively exploring this area and plans to create products covered with insurance payments.
Also, Hashmart provides the contract owners with a personal promo code for a 12% discount to buy any fixed-term contract. It can be found in your e-mail associated with your Hashmart account. It can be used to take advantage of this offer to profitably purchase fixed-cost contracts and Eth 2.0 staking contracts.
What about the mined coins?
All mined coins using the open-ended BTC contracts are available for withdrawal to Bitcoin wallet without a minimum amount limit. You can request the withdrawal using your Hashmart user account.
If you have any further questions do not hesitate to contact us.