Introduction to settlement mechanism
To provide a better trading experience and optimize fund utilization, OKX will launch a daily settlement mechanism for ETH-USD, ETH-USDT, BTC-USDT, and BTC-USD expiry futures contracts in cross-margin mode.
For ETH-USD & ETH-USDT expiry futures contracts, the daily settlement mechanism will start from 08:00 am UTC on March 22, 2025.
The launch date for the daily settlement mechanism of BTC-USDT and BTC-USD expiry futures contracts is pending and will be announced separately.
Introduction
Under the expiry futures contracts settlement mechanism, ETH-USD, ETH-USDT, BTC-USDT, and BTC-USD expiry futures contract positions will be settled daily at 08:00 (UTC). At settlement, the settlement PnL will be credited the trader’s balance and the position’s entry price will be updated to the settlement price. The position’s floating PnL will be calculated using the updated entry price. No fee will be charged for settlement. Your position size won’t change due to settlement. The settlement price is the average mark price in the hour before settlement (data is recorded every 200ms).
Note: Settlement is only applicable to cross-margin positions. Settlement won’t take place on the first listing day or on the delivery date.
Risk Notice: The settlement mechanism will result in changes to your account balance. OKX reserves the right to temporarily close the daily settlement mechanism without prior notice due to market risks and re-open it after assessing the risk.
Changes to position display
Attention: These changes are only applicable to cross-margin expiry futures positions.
Field | Definition | |
Entry Price | Under cross-margin mode, the entry price of expiry futures will update at settlement to the last settlement price, and when the position is opened or increased. |
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Non-Settlement Entry Price | The non-settlement entry price only reflects the average price at which the position is opened or increased. |
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Settlement PnL | The profit or loss from calculating the difference between the settlement price and entry price. PnL will be credited to or deducted from your account balance after daily settlement. |
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Example
Here’s an example of how different fields could change when holding an expiry futures position. Trading fees aren’t included in this example and values are rounded down to the nearest integer.
Sequence | Event | Details |
1 | Open Position | You open a BTC-USDT expiry long position with an entry price of 100,000 USDT and a position size of 0.1 BTC. At this moment, the entry price and non-settlement entry price are both 100,000 USDT. |
2 | Settlement | Daily settlement takes place at 08:00 UTC and the settlement price is 155,000 USDT. Settlement PnL: = Position Size x (Settlement Price - Entry Price) = 0.1 x (155,000 - 100,000) = 5,500 USDT. The PnL is credited to USDT balance of the trader’s trading account. No fee is charged. The entry price is then updated to the settlement price, which is 155,000 USDT. The mark price is 154,600 USDT. Floating PnL: = Position Size x (Mark Price - Entry Price) = 0.1 x (154,600 - 155,000) = -40 USDT |
3 | Increase Position Size | You increased the position size by 0.05 BTC with an entry price of 160,000 USDT. Entry price: = (Original position size x Original entry price + Increased position size x Filled price) / (Original position size + Increased position size) = (0.1 x 155,000 + 0.05 x 160,000) / (0.1 + 0.05) = 156,666 USDT Non-settlement entry price: = (Original position size x Original non-settlement entry price + Increased position size x Filled price) / (Original position size + Increased position size) = (0.1 x 100,000 + 0.05 x 160,000) / (0.1 + 0.05) = 120,000 USDT |
4 | Fully Close Position | You fully close the position at the price of 162,000 USDT. Close PnL: = Position Size x (Close Price - Entry Price) = 0.15 x (162,000 - 156,666) = 800 USDT Realized PnL: = Settlement PnL + Close PnL = 5,500 + 800 = 6300 USDT |
Trading History
After a position has gone through settlement, a settlement bill will be generated. You can check the settlement bill in the Trading history tab on the Order center page. The relevant record will be under the Settlement type.
Market Information
You can check the platform’s settlement history in Settlement tab under Settlement and delivery history on the Market info page. Details including the trading pair, settlement time, and settlement price can be found there. Note: If the settlement mechanism is temporarily paused, there won’t be a record for any skipped settlements.
This document is provided for informational purposes only. It is not intended to provide any investment, tax, or legal advice, nor should it be considered an offer to purchase, sell, hold or offer any services relating to digital assets. Digital asset holdings, including stablecoins, involve a high degree of risk, can fluctuate greatly, and can even become worthless. Leveraged trading in digital assets magnifies both potential gains and potential losses and could result in the loss of your entire investment. Past performance is not indicative of future results. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition, particularly if considering the use of leverage. You are solely responsible for your trading strategies and decisions, and OKX is not responsible for any potential losses. Not all products and promotions are available in all regions. For more details, please refer to the OKX Terms of Service and Risk & Compliance Disclosure.
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