Corporate actions

Splits, dividends, mergers and delistings — what the protocol does automatically, what it deliberately does not do, and the one case that can cost you.

Stock tokens carry the corporate events of the shares they track. A split, a dividend, a merger or a delisting all reach the protocol through the issuer's own mechanism, and the protocol's response is entirely automatic. There is no human review of a corporate action anywhere in Fyber.

How the issuer signals an event

The issuer pauses its oracle, updates a multiplier with an effective timestamp, then unpauses. Raw token balances never change; the price feed already incorporates the multiplier. The protocol reads the announcement in advance where it can.

Guarantee

Your accounting never changes during a corporate action. The protocol values raw collateral × feed price, and the multiplier is never applied on top of that. There is no rebalancing entry, no adjustment to your debt, and no reason for your collateral ratio to move because of a split.

Rules R-2.4.1, R-2.4.2, P4

The 24 hours before

When the effective timestamp is readable and less than 24 hours away, the branch enters a pre-action flag: borrowing and opening are refused; everything else is normal. Adding collateral, repaying, closing, withdrawing, redeeming and liquidating all continue.

Rule R-4.3.8

While the oracle is paused

This is the state in which most events happen, and it is the most restrictive one in the protocol.

Operation	During an oracle pause
Repay, add collateral, close	Available
Stability Pool deposit and withdrawal	Available
PSM, in both directions	Available
Borrow, withdraw collateral	Refused
Liquidation	Refused
Redemption on that branch	Refused; other branches unaffected

Guarantee

No liquidation is possible on a branch whose oracle is paused for a corporate action. The price used is the snapshot taken before the pause, and any price published during the pause is ignored entirely.

Rules R-4.4.1, R-4.3.4

Interest keeps running for the first 24 hours of the pause — so a short halt is not a free holiday — and stops automatically beyond that.

Rule R-5.5.5

Coming back

The branch does not resume the instant the issuer unpauses. It waits for at least three fresh price rounds, a consistency check between the implied share price and the announced multiplier, and confirmation that the token's multiplier matches the one that was announced. The returning price then applies in one step, followed by 10 minutes during which the Stability Pool executes nothing.

If the feed comes back with a price that contradicts the multiplier — the classic failure, where a 10:1 split is applied to the balance but not to the price — the consistency check fails and the branch opens a circuit instead of resuming. No liquidation can happen against an apparently ten-times-smaller collateral. The circuit clears itself after three consistent rounds.

Rules R-4.6.3, R-11.1, R-3.2.7

A worked split

You hold 10 raw QQQ tokens at $600, so $6,000 of collateral, against 3,000 fyUSD of debt. Ratio 200%.

Tuesday 18:00 ET, the issuer pauses. The branch enters the paused state; the price is frozen at the last round, $600. Banner: split in progress, no liquidation possible on this branch.
20:00, the multiplier is updated to 10, effective Wednesday 09:30.
The issuer unpauses. Three rounds, consistency check passes, the price applies in one step, and no liquidation runs for the next 10 minutes.
Your position: still 10 raw tokens × $600 = $6,000, ratio still 200%. The interface displays "100 QQQ" because that is what the multiplier means for presentation.
The interest that accrued during the 15-hour pause: 0.21 fyUSD.

Nothing was written to your position at any point.

Rule R-14.4

Event by event

Event	What happens	Effect on you
Reinvested dividend	Multiplier rises slightly, feed continuous	Your collateral ratio rises. Nothing to do.
Split or reverse split	Oracle pause, then resumption with checks	Nothing. Display changes, accounting does not.
Large cash dividend	Circuit opens on the anomaly, clears automatically after three consistent rounds	Borrowing paused briefly
Merger for cash	Feed stops, branch goes stale, shutdown after 7 days	Repay and take your tokens back, or be redeemed at the last accepted price
Merger for stock	Feed switches or stops; the protocol never migrates a feed	Same as above. The new underlying would be a different protocol.
Trading halt	Feed freezes, branch goes stale after an hour	Borrowing and liquidation both suspended
Token withdrawn by the issuer	Feed stops, automatic shutdown path	Urgent redemptions at the last good price; settlement 30 days later
Token contract upgraded	Minting frozen 7 days, liquidation suspended 24 hours, automatic transferability self-test	Lifted automatically on success; branch shuts down at 28 days on failure

Rules R-11 table, R-6.9.1, R-4.3.9

The case that can cost you

Risk

A spin-off is not covered. If the underlying company spins off an entity, the token's price can resume materially lower and the spun-off entity may not be credited on-chain at all. Once the returning price has ramped in, positions can become liquidatable at the new, lower price. There is no human guard, no compensating adjustment, and no way to add one — a loss of 5–30% for a borrower is possible and it is definitive.

The only mitigations are yours: keep margin above the minimum, watch the pre-action banner, and reduce or close a position on a single-issuer event you are not comfortable with. While it exists, the Closer key can freeze minting, withdrawals and liquidations for 24 hours, which buys time and nothing else.

Rules R-11 table, R-15.4.1 (9)

This is the clearest example of what immutability costs. The protocol will not improvise, and that includes not improvising in your favour.

Last reviewed: 2026-09-07 · Spec v0.4