How long does it take for a Bybit contract to settle

How Long Does It Take for a Bybit Contract to Settle?

Bybit, one of the leading cryptocurrency exchanges, offers a variety of contract types, including perpetual contracts and futures contracts. Each type of contract has its own settlement process and time frame.

Settlement Process

1. Expiration: For futures contracts, the settlement process begins when the contract expires. The expiration date and time are specified in the contract details.
2. Marking Price Calculation: The exchange calculates a marking price for the contract at the time of expiration. This price is based on the weighted average of market prices from multiple exchanges.
3. Profit/Loss Calculation: Based on the marking price, the exchange determines the profit or loss for each trader.
4. Settlement: The exchange settles the contract by transferring the profit or loss to the trader's account.

Settlement Time

The settlement time for Bybit contracts varies depending on the contract type:

Perpetual Contracts

• Perpetual contracts do not have a defined expiration date and continue trading indefinitely.
• Settlement occurs on a rolling basis, typically every 8 hours.
• Trades that are closed before the settlement time are settled at the current market price.
• Trades that remain open during settlement are settled at the prevailing index price at that time.

Futures Contracts

• Futures contracts have a specific expiration date and time.
• Settlement occurs on the expiration date at the specified time.
• Trades that are closed before the expiration date are settled at the current market price.
• Trades that remain open until expiration are settled based on the marking price.

Settlement Timing

1. Regular Settlement: For most perpetual contracts, settlement occurs every 8 hours at 00:00 UTC, 08:00 UTC, and 16:00 UTC.
2. Extended Settlement: During periods of high volatility or market disruptions, the exchange may extend the settlement time to ensure fair and orderly settlement.

Tips for Settling Contracts

1. Monitor the Settlement Time: Traders should be aware of the settlement time for their contracts to avoid any potential delays or losses.
2. Manage Risk: Proper risk management is essential to minimizing losses during contract settlement. Consider using stop-loss orders and limit orders to protect your positions.
3. Withdrawal Timing: If you wish to withdraw funds after a contract settlement, ensure you do so after the settlement time to avoid any issues.