What are delivery contracts on Gate.io?

Gate.io's delivery contracts settle in crypto at expiry, offer flexible leverage, and let traders close positions early—ideal for hedging or speculating without funding fees. (154 characters)

Jul 29, 2025 at 11:49 pm

Understanding Delivery Contracts on Gate.io

Delivery contracts on Gate.io are a type of futures contract where positions are automatically settled at a predetermined expiration time. Unlike perpetual contracts that can be held indefinitely, delivery contracts have a fixed maturity date—commonly weekly, bi-weekly, or quarterly. When the contract expires, all open positions are settled in the underlying asset, such as BTC or ETH, rather than cash. This mechanism ensures alignment with real market prices at the time of expiry.

These contracts are designed for traders who want to speculate on price movements over a specific period or hedge existing crypto holdings. The key differentiator from perpetual swaps is the mandatory settlement at expiry, which removes the need for funding fees—a feature that makes delivery contracts particularly appealing to certain trading strategies.

How to Access Delivery Contracts on Gate.io

To begin trading delivery contracts, log in to your Gate.io account and navigate to the Futures section. Select “Delivery Contracts” from the dropdown menu. You’ll see a list of available pairs like BTC/USDT, ETH/USDT, and others. Click on your preferred pair to open the trading interface.

Before placing any order:

• Ensure your futures wallet has sufficient margin in the correct asset (e.g., USDT for USDT-margined contracts).
• Choose between cross margin (shared margin across all positions) or isolated margin (dedicated margin per position).
• Set your leverage using the slider—options typically range from 1x to 100x depending on the contract.

This setup ensures you’re prepared to trade without encountering margin-related errors during execution.

Placing a Delivery Contract Order

Once in the trading interface, follow these steps:

• Select the order type: Limit, Market, or Conditional (Stop-Loss/Take-Profit).
• Enter the quantity you wish to trade.
• For limit orders, specify the price at which you want to enter.
• Review the estimated liquidation price and margin requirements displayed on the right panel.
• Click “Buy Long” or “Sell Short” to submit the order.
  

  After submission, monitor your position in the “Open Positions” tab. Here, you’ll see entry price, unrealized PnL, and remaining time until delivery. If you hold the position until expiry, it will be automatically closed based on the final settlement price derived from an index of major exchanges.

  Settlement Process Explained

  
  At the moment of expiry—usually at 08:00 UTC for most contracts—Gate.io calculates the settlement price using a time-weighted average price (TWAP) from top spot markets over the last hour. All open positions are then closed at this price.
  

  If you’re long (bought), you receive the underlying asset minus the initial margin used. If short (sold), you pay the difference in the base asset. For example:

  • A long BTC/USDT contract at 60,000 USDT with a settlement price of 62,000 USDT yields a profit of 2,000 USDT worth of BTC.
  • A short position under the same conditions would result in a loss of 2,000 USDT worth of BTC.

  This transparent process prevents price manipulation and ensures fairness across all participants.

  Risk Management Tools

  
  Gate.io provides several tools to help manage exposure:
• Auto-deleveraging (ADL): In extreme market conditions, profitable counterparties may be automatically closed to prevent insurance fund depletion. Your position’s ADL rank is visible in the open positions tab.
• Liquidation alerts: Enable email or SMS notifications when your position approaches the liquidation threshold.
• Take-profit and stop-loss orders: These can be set when opening a position or edited afterward to lock in gains or minimize losses.
  

  Use the “Risk Limit” feature for high-leverage trades—it adjusts your maximum position size based on available margin and current market volatility. This helps avoid unexpected liquidations due to sudden price swings.

  Frequently Asked Questions

  Can I close my delivery contract before expiry?
  
  Yes. You can manually close your position at any time before the delivery time by placing an opposite order (e.g., sell to close a long position). This allows you to realize profits or cut losses without waiting for settlement.

  What happens if I don’t have enough balance for settlement?
  
  If your account lacks sufficient funds to cover a short position’s settlement, Gate.io will use your available margin first. If that’s insufficient, the platform may draw from the insurance fund or trigger auto-deleveraging, depending on system rules.

  Are delivery contracts available for all cryptocurrencies on Gate.io?
  
  No. Only select major assets like BTC, ETH, BNB, and a few others support delivery contracts. Check the Futures section to see which pairs are currently offered.

  Do I pay fees when my contract is delivered?
  
  No additional fees are charged specifically for delivery. Standard taker and maker fees apply when you open or close the position. The settlement itself is a free process handled automatically by the system.