How Would a Derivatives Exchange Handle a Hard Fork Caused by a Security Breach?

A derivatives exchange would typically halt trading on the affected contracts immediately. They would then assess the situation, often waiting for the community and developers to determine which chain is the 'canonical' one.

The exchange would establish a clear settlement price based on the chosen chain's market price and then proceed with a plan for contract settlement, often involving an 'Airdrop' or distribution of the new coin to contract holders.