About 48 hours after launch, users of the Ethereum-based options protocol, Hegic, lost their money forever due to gaps in the platform’s code lines.

According to the platform, 152.2 Ethereum units were nearly locked out, equivalent to about $28,537 in put options.

Hegic says that 16 out of 19 contracts are locked by DAI, while 3 of 19 contracts are locked in Ethereum, and Hegic adds that it has detected that one of the options identifiers has been mistyped.

This means that those who provided liquidity to the protocol after launch will not be able to get their money back every time the defective function is called, which means that users will lose their money permanently.

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According to Hegic:

A technical error was found regarding writing the code, and for this reason, the liquidity in the expired options contracts cannot be unlocked for new options.

Please exercise all your active options contracts now, a 100% refund will be given to each person who paid an amount for the options.

The action led Hegic to urge its users to stop opening new contracts due to the bug, and he promised to work on improving the code in the next few days.

Observers questioned the correctness of the code audit, as the audit was conducted by the audit firm “Trail of Pets” It is a reputable audit firm, and according to its report, it reviewed Hegic’s smart contracts with one engineer between April 8 and April 10 and discovered that 11 vital issues should be fixed, however, the same errors were found as examined on April 15.

The management of “Hegic” responded in a statement, saying that the errors found are not related to security issues, and said that the “Trail of Pets” company did its job well, but the problem occurred as a result of a function name that was written incorrectly, which affected the functionality and made it open liquidity in Expired contracts, and as a quote from the statement:

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If that doesn’t work, the funds are locked forever and can’t be used by any malicious party.

Liquidity that was locked on pool contracts will be locked forever without the ability to open them and withdraw funds from the pool.

Meanwhile, Hegic will refund 100% of its own money to those who lost their money due to the tragic accident, but this will inevitably negatively affect the reputation of the new platform as the money is lost due to the poorly coded algorithm.

Many observers note that the decentralized market for digital currencies is still in its infancy, so we find many stumbles here and there.

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