---
# System prepended metadata

title: 'ICOE: Emergency Shutdown'
tags: [Emergency Resources]

---

---
tags: Emergency Resources
---

# ICOE: Emergency Shutdown

In the event of an Emergency Shutdown please refer to the [Emergency Response Process MIP]([link](https://mips.makerdao.com/mips/details/MIP24)). Below are all of the assets needed to execute on the response process.

## Definition

When triggered, Emergency Shutdown stops and shuts down the Maker Protocol. It provides a settlement for both Dai holders and Vault users, who receive the net value of assets they are entitled to under the Protocol’s smart contract logic. In short, it allows Dai holders to directly redeem Dai for collateral and Vault holders to recieve the excess collateral held in their positions. 

## Resources

[Overview of Emergency Shutdown](https://docs.makerdao.com/smart-contract-modules/shutdown)
[Learn: Emergency Shutdown](https://community-development.makerdao.com/en/learn/governance/emergency-shutdown)
[Emergency Shutdown FAQs](https://community-development.makerdao.com/en/faqs/emergency-shutdown)
[Emergency Shutdown for Partners](https://docs.makerdao.com/smart-contract-modules/shutdown/emergency-shutdown-for-partners)
[The Emergency Shutdown Process](https://docs.makerdao.com/smart-contract-modules/shutdown/the-emergency-shutdown-process-for-multi-collateral-dai-mcd)
[How Emergency Shutdown Affects Users](https://docs.makerdao.com/smart-contract-modules/shutdown/the-emergency-shutdown-process-for-multi-collateral-dai-mcd#how-emergency-shutdown-affects-users)
[Auction Settlement During Emergency Shutdown](https://docs.makerdao.com/smart-contract-modules/shutdown/the-emergency-shutdown-process-for-multi-collateral-dai-mcd#auction-settlement-during-emergency-shutdown)
[end.sol - Technical Documentation](https://docs.makerdao.com/smart-contract-modules/shutdown/end-detailed-documentation)
[esm.sol - Technical Documentation](https://docs.makerdao.com/smart-contract-modules/shutdown/emergency-shutdown-module)
[Emergency Shutdown (ES) CLI](https://docs.makerdao.com/clis/emergency-shutdown-es-cli)

## Templates

### Initial Emergency Notification Thread

```
Title: [Notification and Updates] Emergency Shutdown has been Initiated

Body:

Right everyone, here’s the thread where we lay out all the details of the situation, what to expect, and other resources related to Emergency Shutdown. This thread will remain locked except for mandated actors who will be posting periodic updates. Please visit [this thread_link]() for public discussion.

## Type of Emergency

*Emergency Shutdown*
When triggered, after a preset delay of 73hrs, Emergency Shutdown winds down the Maker Protocol while ensuring that all users, both Dai holders, and Vault users, receive the net value of assets they are entitled to under the Protocol’s smart contract logic. Oracles continue to operate so long as feed providers continue pushing prices.

## Summary of the Situation

Severity level is *VERY HIGH*

From our understanding, at 00:00 UTC on Mon00 Emergency Shutdown was triggered by x. The reason(if available).

Whether Emergency Shutdown was appropriate or not will be determined as we progress through this situation. In the meantime, Emergency Shutdown cannot be reversed and therefore we must ride out the concequences and redeploy a new instance of the Maker Protocol when ready. We assure everyone that a thorough investigation is underway, and further details will actively be provided in this thread.

## Affected Stakeholders

1. Dai users.
2. Dai integrators
3. Maker Protocol integrators

## Current Issues

1. The Maker Protocol is in a permanent post-shutdown phase that cannot be reversed.
2. Dai is no longer soft-pegged to $1, but can be used to claim a fixed amount of assets.
3. Redeeming Dai is problematic for average individuals, and should only be done by professionals due to the numerous assets that accompany a redemption, potentially including tokens that represent "Real World Assets" that don't trade on public crypto markets.
4. Integrators need to be notified
5. Users need to be properly notified.
6. Oracles must be monitored to ensure continued service to 3rd parties.
7. Redeployment Details must be sorted out.

## What to expect

In line with the Emergency Response Process MIP, we will be updating this thread with information as it comes. Expect a long-tail response as well that includes a summary of what happened, including an impact assessment.

## Team Updates

### Team

Insert text for update

## Emergency Shutdown Resources

[Overview of Emergency Shutdown](https://docs.makerdao.com/smart-contract-modules/shutdown)
[Learn: Emergency Shutdown](https://community-development.makerdao.com/en/learn/governance/emergency-shutdown)
[Emergency Shutdown FAQs](https://community-development.makerdao.com/en/faqs/emergency-shutdown)
[Emergency Shutdown for Partners](https://docs.makerdao.com/smart-contract-modules/shutdown/emergency-shutdown-for-partners)
[The Emergency Shutdown Process](https://docs.makerdao.com/smart-contract-modules/shutdown/the-emergency-shutdown-process-for-multi-collateral-dai-mcd)
[How Emergency Shutdown Affects Users](https://docs.makerdao.com/smart-contract-modules/shutdown/the-emergency-shutdown-process-for-multi-collateral-dai-mcd#how-emergency-shutdown-affects-users)
[Auction Settlement During Emergency Shutdown](https://docs.makerdao.com/smart-contract-modules/shutdown/the-emergency-shutdown-process-for-multi-collateral-dai-mcd#auction-settlement-during-emergency-shutdown)
[end.sol - Technical Documentation](https://docs.makerdao.com/smart-contract-modules/shutdown/end-detailed-documentation)
[esm.sol - Technical Documentation](https://docs.makerdao.com/smart-contract-modules/shutdown/emergency-shutdown-module)
[Emergency Shutdown (ES) CLI](https://docs.makerdao.com/clis/emergency-shutdown-es-cli)

```

---

### Discussion Thread

```
Title: [Discussion] Emergency Shutdown has been Initiated

Body:

As covered in the [Summary & Updates thread](link), Emergency Shutdown was initiated. For more details, please visit that thread.

This thread is for public discussion, since the summary and updates thread is locked and reserved for mandated actors to post updates.

## Themes in the comments

- Mentions x
- Mentions y
- Mentions z

```
---

### Signal Thread for Redeployment

```
Ominous missing template
```

---

### Response Summary Thread

```
Title: Summary of Emergency Shutdown Response

Body:
In the aftermath of this event, we've created a summary of the events as they related to governance. What went well, what went badly, etc. I’ve also included a timeline and a brief overview of the executive proposals involved.

The final section of this document is a **Proposed Actions** section, some of these are being worked on, others have yet to be tackled. Any comments here would also be great, if you want to help work on any of those Proposed Actions, please comment, get in touch with me, or otherwise *[just do it](https://forum.makerdao.com/t/ask-forgiveness-not-permission-five-tenets-for-a-productive-dao/749).*

---

# Timeline of Events

**Monday Month 00th**
The Emergency Shutdown Module reached 50,000 MKR deposited.
Emergency Shutdown Initiated.
Initial Notification and Updates thread posted.
Discussion Thread posted.
Special rocketchat channel created.

**Thursday Month 00th**
Weekly Governance and Risk Call
* Emergency Shutdown Discussed
* Redeployment Discussed

**Monday Month 00th**
etc

**Monday Month 00th**
etc

**Monday Month 00th**
etc

# Analysis of Major Events

## Emergency Shutdown Immediate Response

**Successes**

* Insert
* Insert
* Insert
* Insert

**Room for Improvement**

* Insert
* Insert
* Insert

**Points of Interest**

* Insert
* Insert
* Insert

## 73hr Delay Period

**Successes**

* Insert
* Insert
* Insert
* Insert

**Room for Improvement**

* Insert
* Insert
* Insert

**Points of Interest**

* Insert
* Insert
* Insert

## First Redeployment Proposal

**Successes**

* Action was taken swiftly.
* Insert

**Room for Improvement**

* Insert
* Insert
* Insert

**Points of Interest**

* Insert
* Insert
* Insert

## Redeployment

**Successes**

* Action was taken swiftly.
* Insert

**Room for Improvement**

* Insert
* Insert
* Insert

**Points of Interest**

* Insert
* Insert
* Insert

## Public Relations

**Successes**

* Insert
* Insert
* Insert

**Room for Improvement**

* Insert
* Insert
* Insert

**Points of Interest**

* Insert
* Insert
* Insert

# Analysis of On-Chain events

## Deposit(s) of MKR into the ESM

**Contract:** https://etherscan.io/address/0x0581a0abe32aae9b5f0f68defab77c6759100085
**Date Started:** yy/mm/dd

**Contents**

* User(s) deposited xx,xxx MKR into the ESM.

**Where was the MKR sourced from?**

* Borrowed or no?

**Was there any communication about why the MKR was deposited?**

* Was there?

## ESM triggered

**Contract:** https://etherscan.io/address/0x0581a0abe32aae9b5f0f68defab77c6759100085
**Date Started:** yy/mm/dd

**Contents**

* End_wait Delay: 73 hours?                               <-left offfffffff
* Vaults -> locked, except for excess collateral withdrawal.
* Dai    -> claimable after delay

**Did we consider canceling the Emergency Shutdown?**

* Insert

**What actions did we take during the delay?**

* Insert

## Redeployment

**Contract:** https://etherscan.io/address/????????????????
**Date Started:** yy/mm/dd

**Contents**

* summary of redeployment parameters

**How effectively did this pass in the forums?**

* Insert

**What are the differences in this redeployment?**

* Insert

**How much risk did we take on as a result of moving quickly?**

* Insert

# Proposed Actions

**Proposed action**

More detailed Description.

**Proposed action**

More detailed Description.

```

---