We are issuing an important correction to our previous announcement regarding the Ribbon DOVs exploit. Our initial analysis was fundamentally flawed, and we owe our community both an apology and an explanation. In our urgency to respond to the exploit, we failed to properly understand the funds allocation before communicating. This led us to publish a resolution framework that, as it turns out, does not reflect reality. This was a mistake on our part: affected users deserved accurate information from the outset, and we let them down. We apologize for this error. Following a comprehensive review, we can now provide an accurate account of the situation. The Ribbon vaults operated with three distinct pools of funds: - active funds, deployed weekly to execute the vault strategy; - queued withdrawals, which consisted of funds that users had already requested to withdraw and were held separately, pending finalization; - paused funds, not actively allocated nor queued. Crucially, queued and paused funds remained untouched by the exploit. The exploit affected only the active funds, which totaled approximately $2.7M across all vaults (including approximately $400K held by the DAO). This active portion has been entirely drained, while the queued and paused funds remain intact. Approximately $350K in funds are held in the vault pauser contract (paused funds). Users with funds in the pauser contract will be able to recover them in full, however this will require a contract upgrade. We will announce once the upgrade is deployed; in the meantime, please wait. We understand the implications of what we are about to say, and we do not say it lightly: - If you had queued a withdrawal prior to the exploit, you may finalize it and recover 100% of your funds. The queue currently holds approximately $4.3M in various assets; - If you had paused your funds, you'll be able to withdraw them in full, pending a contract update (please wait for our announcement); - If you had not queued a withdrawal or paused prior to the exploit, your active funds have been entirely lost. We recognize how devastating this is for those affected. There is no framing that softens a total loss, and we will not pretend otherwise. Following the exploit, DAO representatives have lodged complaints with the relevant authorities and notified all centralized exchanges that the exploiter has interacted with. The DAO also remains committed to engaging with its members on potential paths forward for vault depositors. Should you wish to propose a remediation initiative, we encourage you to submit a governance proposal through the established process. Again, we apologize for the earlier misinformation.