How is the OKEx perpetual contract settled?

OKEx offers eight-hourly settlement intervals for perpetual contracts, ensuring efficient position adjustments and profit/loss determination at predetermined times.

Oct 24, 2024 at 04:00 am

OKEx Perpetual Contract Settlement

OKEx perpetual contracts are settled every 8 hours. The settlement time is as follows:

1. UTC 08:00
2. UTC 16:00
3. UTC 00:00

Settlement Process:

1. Calculation of Settlement Price: The settlement price is calculated as the average price of the perpetual contract during the last 30 seconds before the settlement time.
2. Mark Price Adjustment: If the settlement price differs from the mark price by more than 0.01%, a mark price adjustment is applied to bring the settlement price closer to the mark price.
3. Position Closing: All perpetual contract positions are closed at the settlement price.
4. Profit/Loss Settlement: Traders receive or pay profit/loss based on the difference between their position opening price and the settlement price.

Example:

• Contract: BTCUSDT perpetual contract
• Settlement Time: UTC 08:00
• Settlement Price: $40,000
• Mark Price: $39,998
• Trader A has a long position of 10 BTC with an opening price of $40,100.
• Trader B has a short position of 10 BTC with an opening price of $39,900.

Settlement Calculation:

• Settlement Price: ($40,000 + $40,000) / 2 = $40,000
• Mark Price Adjustment: $40,000 - $39,998 = $0.002 > 0.01%, apply adjustment.
• Adjusted Settlement Price: $40,000 + (($40,000 - $39,998) * 0.5) = $40,000.001

Trader A:

• Profit/Loss: (40,000.001 - 40,100) * 10 = -100 USDT

Trader B:

• Profit/Loss: (40,000.001 - 39,900) * 10 = 100 USDT