UPDATE: What Happened and What You Need to Know To understand the impact, we need to separate what IMF is from what $IMF represents. There are two sides to IMF: 1. IMF the protocol – a stand-alone, permissionless, autonomous credit system built on top of audited and battle-tested infrastructure. 2. $IMF the token – a way to engage with the broader IMF ecosystem, built on the Salutary standard for onchain acquisition and credible control. This update concerns the token, not the protocol. What happened A combination of factors resulted in a sell-off. This triggered a wave of follow-on selling and cascading liquidations for other $IMF holders who were using leverage. The result was a sudden and steep decline in its market price. Is the protocol safe? Yes. The protocol worked as intended. The IMF is built on top of thoroughly audited, battle-tested infrastructure such as Morpho, DIA and Sky/USDS. Did the protocol accrue any bad debt? Due to the speed and frequency of the liquidations, the protocol accrued some bad debt (~1% of USDS deposited). This is less than the total yield generated for lenders, so there is no net loss. Are other markets affected? No. All other borrow markets remain isolated and healthy. There is no risk of contagion. You can continue borrowing safely against all listed tokens. At the time of writing, over $43.5 million in active loans remain stable. Final note Those who participate in memecoins understand that the market is often volatile. The $IMF token is not exempt from this. The price impact is attributed to the actions of external forces at scale. The protocol continues to operate as designed. The $IMF token is already showing signs of recovery. Since launching three months ago, IMF has grown rapidly. The team remains focused on long-term growth and protocol resilience. Thank you to all cartel members for their support and resilience through what has been a very challenging 12 to 14 hours. We will stop at nothing.