User Guide

Account Management

Account categories

There are two categories of accounts in CoinEx Chain: normal account and locking account. Locking account is also referred to as vesting account. It can only be created in the genesis block and the assets in it is locked for a predefined period. After the locking period, the locking account can operate just like a normal account.

The locked CET tokens of CoinEx team are contained in 5 locking accounts, whose unlocking date is 2020/1/1, 2021/1/1, 2022/1/1, 2023/1/1, 2024/1/1.

Account Address

Accounts are authenticated with the signing algorithm ECDSA defined over elliptic curve secp256k1, which is just the same as Bitcoin. Bitcoin's raw address is calculated as: RIPEMD160(SHA256(compressed_33byte_public_key)), and CoinEx Chain follows it.

There are multiple address formats for Bitcoin: P2PKH, P2SH and Bech32. CoinEx Chain adopts the Bech32 format, which is composed of three parts:

  1. The human-readable prefix. For CoinEx Chain mainnet, it is coinex, and for the testnet, it is cettest.
  2. The separator, which is always "1".
  3. The data part, which is at least 6 characters long and only consists of alphanumeric characters excluding "1", "b", "i" and "o". This part encodes the bytes of raw address and some checksum bits.

The "Memo-Required" Option

There is a "memo-required" option for every account. You can turn it on or off any time.

"Memo" is an optional string attached to every transaction in CoinEx Chain, explaining its intent. Centralized exchanges can utilize memo for deposit. That is, one exchange maintains only one address on CoinEx Chain and different customer uses different memo (usually her ID on this exchange) to indicate who is depositing coins.

When "memo-required" option of an account is turned on, every transaction which sends coins to this account must have a memo string, or it will fail.

Usually centralized exchanges will turn on memo-required option, to prevent its customers from forgetting to write ID in memo.

Locked coins, frozen coins and staked coins

Besides the freely-spendable coins, an account can also have locked coins, frozen coins and staked coins.

When someone else send you some coins, she can mark these coins as "locked" before a given unlocking time. You own these coins but can not spend them until the unlocking time. Please note the difference between locked coins and locking account. In a locking account, all the coins are locked.

When you create a order for trading on the DEX, both the stock coins to be sold and the money coins to be paid will be frozen. If a order expires or is canceled before it is fully filled, the remaining unfilled frozen coins will be unfrozen.

If you want to take part in the staking economy of CoinEx Chain, you must delegated your CET coins to one or more validators. Such coins are "staked coins". You can get back these staked coins when they are undelegated.

Transaction fees

Gas fee and Feature fee

To prevent DDoS attach, CoinEx Chain charges transaction fees and only CET is accepted. Transaction fees include two parts: the usual gas fee (like Ethereum) and feature fee. Gas is calculated according to the size of transaction, the signature count, the read/write count to persistent storage and the length of read/write data. Feature fee is an extra fee charged for some particular operations, for example, issuing a new asset, listing a new trading pair, creating an account and transferring tokens with a lock time. The matched orders are charged according to the dealt amount with a configurable rate, which also falls in the category of feature fees.

How are the fees charged

To improve transaction throughput, CoinEx Chain takes an optimistic strategy when packing new blocks. Unlike Bitcoin and Ethereum, packing a transaction into the new block does not mean it can execute successfully, instead, it only means: 1) the transaction passes basic format checks; 2) the sender has enough CET to pay the gas fee of the transaction; 3) the signature of the sender is correct. When a transaction fail, it has no effects other than charging gas fees from its sender. In other words, gas fee is charged no matter the transaction succeeds or not.

So, it is the sender's responsibility to ensure the transaction can successfully execute. If you transfer more coins than your owned coins or create orders for a non-existent trading pair, you will fail but still have to pay the gas fee.

Feature fee is different from gas fee, and it is charged only the transaction succeeds.

Asset Issuance and Management

Permissionless Issuance

Currently CoinEx Chain supports ERC20-like fungible tokens. Any one can issue her token. The token issuer is its owner, who owns the created tokens. The issuance is totally permissionless and without any approval flow., CoinEx foundation or the validators of CoinEx Chain are not aware of the token owners' identities or the token's usage.

A token's total quantity can be any value which is no larger than 90 billion. And its precision are fixed at 8 decimal digits.

On CoinEx Chain, an asset is denoted by a symbol, which is composed of 2-8 characters/numbers and cannot begin with a number. You can not issue a new asset whose symbol conflicts with an existing one.

Some popular symbols, such as BTC, ETH, EOS, are reserved for issuing pegged tokens in the future. And the symbols for legal tenders, such as USD, CNY, RMB, are forbidden to be used as token symbols because of possible malicious usage.

Since symbols are scarce resources, a fixed feature fee (currently 10,000 CET) will be charged for issuing a new token.

Asset attributes

Some attributes can be added when issuing a token, which can not be changed thereafter. They are:

  1. Mintable: token owner can mint new tokens, but the total quantity must not exceed 90 billion.
  2. Burnable: token owner can burn tokens which are owned by her.
  3. Addresses can be blacklisted (Address-Forbiddable): token owner can forbidden any address to use her token, i.e., put it in a blacklist. The affected token in a forbidden address cannot be transferred or used for exchange, while other unaffected tokens in the address can still be used freely.
  4. Token can be globally forbidden (Token-Forbiddable) with exceptions in a white list. The token owner can forbid the token on demand, during which transfer and exchange are fully disabled. During the forbidden period, the token owner can create a whitelist of addresses that can initiate transfer transactions but no exchange transactions. And during that period, the token owner’s operations on the token are unaffected.

With these attributes, stable coins and security tokens can be implemented.

The following table summaries the different capabilities of different kinds of account.

Whitelist address&
Token owners
Normal Addresses Forbidden Addresses
Create Order
Match Order
Transfer Token
Receive Token

Ownership Transfer

A token owner can transfer the ownership to a different account. The new owner will have the abilities to mint, burn, blacklist addresses and forbidden the token, if the corresponding attributes were added during issuance. But the coins in the older token owner's account will not be transferred to the new token owner.

The attributes of a token still can not be modified after ownership transfer. The token symbols are not like domain names, so a "symbol market" is not encouraged (but permitted). It would be a good practice for a token issuer to specify the total quantity and the four attributes according to real requirements, instead of the possibilities to sell the ownership.

Transfer Tokens

Create Accounts by transferring coins

An account is created when some other account send coins to it and a fixed feature fee (currently 1 CET) is paid during the creation. When you send coins to a non-existent account, if there is no CET in the sent coins or the amount of CET is less than one, you will fail in creating a new account and the send transaction will also fail.

The feature fee for account creation prevents the abusement of on-chain resources.

Send Locked Coins

You can send coins to someone's account and make them locked coins in single transaction. In this transaction the unlocking time must be specified, which is a Unix timestamp. When the block header's timestamp is later than the locked coins' timestamp, the coins are unlocked automatically.

Locked coins take extra on-chain storage, to prevent abusement a fixed feature fee (currently 100 CET) is charged when sending locked coins.

Sending locked coins may fit in the following scenarios:

  1. After issuing the token, the token owner divide the tokens and send them to several address with different unlocking time, which enforces a promised unlocking schedule.
  2. The investors divided the invested funds into several parts and specify the unlocking time for each part.
  3. When incenting developers and participators in a token's ecosystem, the tokens are sent to them with a lock time, which encourages them to continue contributing to the ecosystem.

Multi-send Transactions


Market Creation and Management

Create a market

Without any approval or voting process, a token owner can freely create new market, i.e., a trading pair between her token and another token, where her token and the other token are referred to as "stock" token and "money" token, respectively. She can choose any token as the money token, without the permission from the money token's owner. But normally, only the tokens with plenty of liquidity, such as CET, pegged BTC and pegged USDT, are suitable to be used as money tokens.

A market can only be created by its stock token's owner. You can not create a market if you only own its money token, or you own none of this pair of tokens.

To ensure the liquidity, the first market created for a newly-issued token must be between the new token and CET.

To avoid the abuse of system resources and ensure the quality of the on-chain ecosystem, a certain amount of CET will be charged as feature fee for issuing token and creating new trading pairs.

For each market, a price precision must be specified, which is the upper limit for the price precision of the orders in it. The market's creater, i.e. the owner of its stock token, can change its precision at any time.

Cancel a market

A market can be canceled by its stoke token's owner. The cancellation must take effect in some future time, instead of immediately. The cancellation time is specified as a Unix time stamp and must be long enough from now. The interval between now and the specified cancellation time has a lower bound, which is controlled by the MarketMinExpiredTime parameter.

The first block after UTC midnight is a special one. In the whole day, it is the only block for canceling market and deleting the expired GTE orders, and no matching is performed in them. So a market can only be canceled when 1) the specified cancellation time has been reached, and 2) it is the first block after UTC midnight.

When a market is canceled, all the unfilled orders will be deleted.

Trading Orders

#### GTE and IOC orders

Users can submit new bid orders or ask orders to the order book through the New Order transaction, or cancel self-placed orders from the order book at any time. Good Till Expire (GTE) orders and Immediate Or Cancel (IOC) orders will be automatically deleted from the order book after expiration. The former expires at 00:00 UTC after the predefined life time, which can be lengthened by paying more feature fee; While the latter expires at the next block after entering the order book (i.e., there is only one chance to be matched).

Price Precision

In a transaction which creates a new order, there are two parameters to present the price: price and price_precision, and the real price is calculated as price/10price_precision. The price precision of an order, should be no larger than the price precision of the market. Thus the market's owner can control the granularity of prices.

Cancel an Order

An order has an ID, which contains tree parts: its sender's bech32 address, separator '-' and a decimal sequence number. The order's owner can cancel it after creation, by specifying its order ID. After the cancellation, the unfilled amount will be unfrozen.

Trading Fee

Trading fee is a kind of feature fee which is charged at a fixed ratio (currently 0.1% for both makers and takers) with respect to the total filled amount. It can only be paid in CET and is calculated as: total_filled_stock_amount*ratio*last_price, where last_price is the last execution price in the market between the stock token and CET.

To prevent "dust transactions" from consuming too much on-chain resources, the notional value must be large enough such that the trading fee is above a lower bound when the order is fully filled.

Trading fee is frozen when the order is created, and it will be all charged when the order is fully filled. And if the order is not fully filled because of expiration or cancellation, the remaining fee will be unfrozen.

Order Matching

Batched Auction

For off-chain order matching, orders are always accepted by the server one by one and can be prioritized by the submission time. The most important difference for order matching on-chain is that orders are packaged in blocks and the orders within the same block cannot be prioritized by time. In order to ensure that the orders within the same block are treated equally, we adopt the method of “batched auction” for order matching. For all bid and ask orders that can be filled, a single price for execution will be calculated. The principles are as follows:

  1. Maximizing matched volume.

  2. Minimizing remaining volume. If more than one price has the same executable volume, the price should be the one with the lowest remaining volume. The remaining volume is the unexecuted amount for all orders with executable price.

  3. Market Pressure. If multiple prices satisfy 1 and 2, then identify where market pressure of the potential price exists. A positive remaining amount indicates bid side pressure and higher prices are preferred, while a negative remaining amount indicates ask side pressure and lower prices are preferred.

  4. When both positive and negative remaining amounts exist, the latest execution price is reference price, and the price closest to the reference price should be chosen.

#### Priority in order matching

After the execution price is decided, the bid orders and ask orders which accept this price are sorted into two queues and get matched by repeating the following steps:

  1. Pick the order from the head of the bid order queue, and match it against the orders in the ask order queue (from head to tail). Then remove the fully-filled orders from the queues.
  2. Pick the order from the head of the ask order queue, and match it against the orders in the bid order queue (from head to tail). Then remove the fully-filled orders from the queues.

The order queues are sorted under such a priority:

  1. The orders with better prices will come first. Lower prices in ask orders and higher prices in bid orders are better prices.
  2. For orders with the same price, older orders which are packed on chain in smaller heights, will come first.
  3. For orders with the same price and same height, those with smaller hash key will come first. A hash key is calculated as sha256(concat(order_id, data_hash)), where data_hash is the Merkle root of the transactions in current block.

Mainnet Mapping

The mainnet mapping of CET will be completed jointly by CoinEx Foundation and CoinEx’s business ecosystem. CET holders need to deposit ERC20 CET to CoinEx exchange and the corresponding CET on the mainnet will be distributed to CoinEx exchange, after which users can withdraw CET from CoinEx exchange. The specific process is as follows:

  1. Before the launch of the mainnet, the exchange is only available for deposit of ERC20 CET and the withdrawal service will be suspended.

  2. All the unlocked tokens are deposited in the CoinEx exchange.

  3. When the mainnet is launched, both CET in CoinEx exchange and the locked ERC20 CET on ethereum will be mapped to the mainnet.

  4. Open withdrawal and deposit for mainnet CET.

  5. Users can create a CoinEx Chain account address and withdraw the mainnet CET from CoinEx exchange.

  6. Users can also withdraw coins to a third-party Wallet or an independent Wallet and use CET on the mainnet to participate in staking.



In CoinEx Chain, any owner of CET can delegate her CET tokens to a validator. Any node can become a validator if it delegates enough CET to itself, which is referred to as "self delegation". A validator's voting power is proportional to the CET tokens delegated to it, including self delegation and delegations from other accounts.

An active set of 42 validators with highest voting power is selected for proposing and voting new blocks. You can undelegate the coins that were delegated to a validator before, or redelegate them to another validator, at any time you like. So the voting power of the validators may change at any block, and the active set may change at any block.

The CET coins used for delegation are called "staked coins" and they may be one of these states: Delegated, Delegated&In-ReDelegating-Queue andIn-Unbonding-Queue.


The above figure shows the transitions between validators' states, which is explained in detail as below:

  1. Some freely-spendable coins can be turned into delegated coins after a "Delegate" transaction.
  2. Delegated coins can be put in the unbonding queue after a successful "Undelegate" transaction.
  3. The coins in the unbonding queue will stay there for a configurable period (currently 21 days) and when the staying is completed, the coins will be freely-spendable again.
  4. Delegated coins can be put in the redelegating queue after a successful "Redelegate" transaction.
  5. The coins in the redelegating queue will stay there for a fixed period (currently 21 days) and when the staying is completed, the coins will become normal delegated coins again.

The unbonding queue and the redelegating queue have a size limit, if they are full, further "Undelegate" transactions and "Redelegate" transactions will fail, respectively.

If you have staked coins in Delegated orDelegated&In-ReDelegating-Queue state, you can share validator's award at every block and may get slashed if the delegated validator is slashed. If you have staked coins in In-Unbonding-Queue orDelegated&In-ReDelegating-Queue state, you may get slashed if the validator who you formerly delegated to is slashed, but you can no longer share the former validator's awards.


A validator can be in one of following states: Unbonded, Bonded, UnBonding, Unbonded&Jailed, Unboding&Jailed and Dead. Only when it is in the Bonded state, it is allowed to participate in proposing and voting new blocks.

Validators' different states

The above figure shows the transitions between validators' states, which is explained in detail as below:

  1. A node can become a validator by sending a "Create Validator" transaction with some self-delegated CET. Normally, it is at the Unbonded state at this time, because the self-delegation is usually small and can not make it a Bonded validator.
  2. If CET owners delegate enough tokens to a Unbonded validator and make its voting power top-42 among all the validators, it will switch to Bonded state.
  3. If a Bonded validator lost some of its delegation and fall out of top-42, it enters the Unbonding state and stays in this state for a fixed period (currently 21 days). When its staying is completed, it will switch to Unbonded state. If its voting power regains top-42 before its staying is completed, it will switch back to Bonded state.
  4. If a Unbonded validator lost all of its delegation including self delegation and the delegations from other accounts, it will automatically become a normal node and no longer a validator.
  5. If a validator in Bonded or Unbonding state is slashed because of double-signing behavior, it will be put into the Dead state and can never be a validator any more.
  6. If a validator in Unbonded state reduce its self-delegation too much to reach the lower bound, it will be put into the Unbonding&Jailed state.
  7. If a validator in Bonded or Unbonding state performs some evil behavior and is discovered, it will be put into the Unbonding&Jailed state. For a Bonded validator, evil behaviors include unavailability in voting and self-delegation falling below the lower bound. For a Unboding validator, only the latter behavior is considered as evil because it can not vote.
  8. Validators in the Unbonding&Jailed state or the Unbonding&Jailed state will be locked up in the jail for a fixed period (currently 5 minutes) and after that, they can return to the original state by sending an "Unjail" transaction.


The validators and their delegators are incented to encourage more participators to CoinEx Chain's ecosystem. The incentive is composed of two parts: block rewards and the transaction fees in the block. Block rewards are usually generated by minting new coins. PoW chains, such as Bitcoin, mint new coins through mining, and PoS chains, such as Cosmos Hub, mint new coins through inflation. Since minting new coins violates the “No Inflation” promise of CET, CoinEx Chain will use reserved tokens of CoinEx foundation for block rewards.

After the mainnet is launched, CoinEx Foundation will allocate about 315 million CET as incentives to the initial validators and staking participants. The time span for distributing 315 million CET incentives is related to the interval between blocks. The incentive plan is estimated with a 3-second-per-block assumption. The specific reward for each block is shown as follows:

Start height End height CET amount Awards per block
Year 1 0 10512000 105,120,000 10
Year 2 10512000 20124000 84,096,000 8
Year 3 20124000 31536000 63,072,000 6
Year 4 31536000 42048000 42,048,000 4
Year 5 42048000 52560000 21,024,000 2

Awards Distribution

At each block, the CET incentive are distributed in following steps:

  1. A small portion (currently 2%) is reserved in a pool for future community incentive.
  2. For the validators whose vote were included this block, calculate their "deserved shares": for the block's proposer, her share is her voting power plus a small extra number; for the other validators, their shares are equal to their voting power.
  3. The other coins are divided by the validators, in proportion of their deserved shares.
  4. A validator keep some of the coins assigned to her, according to a pre-defined commission rate; the other coins are given to her delegators, in proportion of the amount they delegated to her.

Unlike a PoW chain, where the incentive of a block is given to just one miner, CoinEx Chain divide the incentive to all the validators who voted for the block and their delegators.

Different validators can define different commission rates, and there is no upper bound or lower bound for the rate. But the competition among validators will keep the average commission rate to a relatively low value.

This distribution process is totally automatic and performed on chain. Validators do not need to manually give the awards to the delegators. This is different from a PoW pool, who has to pay to its miners manually.

Although the distribution is automatic, delegators must send transactions to withdraw their awards. Before withdrawal, the awarded CET tokens are in a "booked but not delivered" state, which means you can not see them in your account, send them to other accounts or delegate them.

When a delegator changes her delegated coins to a validator, no matter by undelegation, redelegation or delegating more coins, her previously accumulated awards at this validator will be withdrawn to her account implicitly.


Validators’ misbehavior and unavailability threaten the stability of the chain, in which circumstances CoinEx Chain will slash the validators. For the misbehavior which violates the consensus protocol, such as signing two different blocks at the same height (double signing), a remarkable portion of the validator’s stake will be slashed, and the validator will be evicted out of the validator set permanently. For temporary unavailability, a small portion of the stake will be slashed as a warning, and the validator will be jailed for a period. These slashed tokens will be retained to a reserve pool as community incentive in the future.

The validator's stake is slashed, both its self-delegated coins and the coins delegated by other accounts, will be slashed at the same ratio. So when choosing a validator to delegate your coins, its reliability is much more important than its commission rate.

As mentioned above, when a validator is slashed because of its unavailability, it is jailed. A jailed validator can no longer propose or vote for blocks, and it would not be slashed again for unavailability, until it sends an "unjail" transaction.

To prevent long-range attacks, an Unboding validator can still be slashed because of double signing, even though its votes no longer have any effect now, i.e., have zero voting power.

The coins in the unbonding queue and the redelegating queue can also be slashed because of the former validator's misbehavior, if and only if: 1) when the misbehavior is discovered, the coins are in one of the queues; and 2) when the misbehavior was carried out, the coins have not enter these queues.

If some coins are delegated to a validator after the moment it carried out a misbehavior, but before the moment the misbehavior is discovered, these coins will still be slashed.


Community governance is achieved through proposal and voting. A validator can vote on behalf of its delegators, while the delegators have the right to vote on their own and overwrite the validator’s vote.

There are four voting options: Yes, No, No With Veto, Abstain:

  • If more than one third of the votes are “No With Veto”, the proposal is rejected;

  • If participated voting power does not reach 40% of the staked voting power, the proposal is rejected;

  • If more than half of non-abstain votes are Yes, the proposal is considered passed.

When the proposal is made, the community is required to stake 10000 CET to the relevant proposal as a pledge to prevent the abuse of proposal. After the proposal is passed, the staked CET will be returned to the corresponding account address. If the proposal is rejected due to the following reasons, the pledged stake will not be returned and instead, be retained by the system for community incentives in the future.

  • The stake fails to reach 10000 CET, meaning the community is not interested in or does not support the proposal;

  • Participating voting power does not reach 40% of the staked voting power;

  • More than one third of the votes are No With Veto.