TL;DR

• Incident & TVL: On Oct 15, the TLP contract suffered a $3.26M loss from an oracle exploit. All contracts were immediately paused. Platform TVL adjusted to $7.30M (-60.2%).
• Response & Recovery: A definitive TLP Recovery Plan was published, committing to make all users whole, with users under $10k losses receiving 100% immediate cash compensation.
• Secure Products: The exploit was isolated to the TLP. User collateral, SAFU, and DOV funds were confirmed secure and unaffected. Typus Options products were audited and resumed.
• Community: All marketing was paused. The team’s entire focus shifted to transparent crisis communication and returning collateral to traders.

Market Pulse & TVL: Crisis Response in a Volatile Market

October was one of the most volatile months on record. It began with “Uptober” optimism, pushing BTC to new all-time highs. This was abruptly ended by a “record $19B liquidation cascade” on October 11, driven by macro fears. The market then entered a corrective phase before staging a partial recovery late in the month on renewed US-China trade optimism.

On October 15, amidst this extreme market volatility, Typus Finance experienced a critical security incident involving an oracle exploit, resulting in a $3.26M loss from the TLP contract. All protocol contracts were immediately paused. Consequently, Total Value Locked for the platform was $7.30M at month-end, a -60.2% adjustment from September’s $18.35M. The team’s immediate and full focus shifted from market-driven growth to crisis management, user protection, and transparent communication.

Performance Deep Dive: Incident Impact & Data Transparency

• TLP (Perp) TVL: The exploit was isolated to the TLP contract, which saw its TVL reduced to $9,729 (-99.75%) from $3.83M. The team has published a definitive TLP Recovery Plan to make users whole.
• Typus Finance Total Value Locked: Concluded the month at $7.30M, a -60.2% adjustment from $18.35M, as a direct result of the TLP incident.
• Typus Options TVL: Was technically unaffected by the exploit. Its TVL (DOV + 2*SAFU) adjusted to $7.29M (from $14.51M, -49.8%), reflecting market price depreciation and user withdrawals while the contracts were temporarily paused.

• Fees & Volume: Despite the 16-day pause, the Perps platform recorded $53.0M in notional volume for the month (+70.8% vs Sept) and generated $38,700 in TLP fees.
• User Engagement: Core product MAU adjusted to 876 (from 1,001, -12.5%). This adjustment directly reflects the protocol-wide pause initiated on October 15 to ensure user security.

Product Shipped: Crisis Response & Resuming Secure Operations

• Paused Collateral Returned: All collateral for paused perpetual positions and active orders was calculated and returned directly to user wallets, ensuring no trader funds were locked.
• Options & SAFU Resumed: Following rigorous internal code review confirming their separate security architecture, the Typus Options and SAFU products were safely resumed, allowing users to deposit and withdraw freely.

Roadmap Update: What’s Next

In Final Testing (Pending Security Audits)

• New, strengthened TLP Smart Contracts
• BTC DDH Strategy (SAFU)

In Active Development (Future Keystones)

• Typus Perps V2 (Cross Margin & Isolated TLP)
• Protocol Rebranding & Dark Mode

Community & Ecosystem: A Focus on Transparency

All external marketing and partnership activities were halted on October 15. The team’s entire focus shifted to direct, transparent communication with the community regarding the TLP exploit. This involved:

• Publishing a Full Post-Mortem: A detailed report was released on Oct 16, outlining the incident’s timeline, root cause, and the security of unaffected products.
• Engaging Users Directly: Provided constant updates via X (Twitter) on fund tracing, the return of trader collateral, and the status of non-affected products.
• Delivering the TLP Recovery Plan: Published a definitive, tiered compensation plan on Oct 23 to make all affected LPs whole, prioritizing small holders for an immediate 100% cash recovery.

Building Momentum: Where It Counts

October was the most challenging month in Typus’s history. The TLP security incident was a critical failure, and the resulting TVL data reflects this reality. However, a team’s response to a crisis defines its character.

Our response was immediate, transparent, and total. We successfully protected all user funds outside the TLP, returned all trader collateral, and resumed our secure Options products. We have published a definitive recovery plan that commits to making every TLP user whole. Our path forward is clear: to rebuild trust through enhanced security, deliver on our recovery promise, and continue building the future of Typus Finance.

Get Started with Typus:

• Discover yield opportunities with Typus Options
• Follow us on X @TypusFinance for the latest news, announcements, and insights.

Stay tuned for more updates as we head into November!