Can Upbit contracts be withdrawn?

Can Upbit Contracts be Withdrawn?

Upbit, South Korea's largest cryptocurrency exchange, offers a wide range of cryptocurrency trading options, including spot trading, margin trading, and futures contracts. However, unlike spot trading, where users can withdraw their purchased assets to their personal wallets, futures contracts are financial instruments that represent an agreement to buy or sell an underlying asset at a specified price on a future date. As a result, Upbit contracts cannot be withdrawn in the same way as spot assets.

Alternatives to Withdrawing Upbit Contracts

Instead of withdrawing Upbit contracts, users can consider the following alternatives:

1. Close the Contract Position:

• Close the open futures contract on the Upbit platform.
• This involves selling the contract if it was a buy position or buying it back if it was a sell position.
• The profit or loss from the contract will be realized, and the underlying asset will not be delivered.

2. Roll the Contract:

• If an open contract has a long duration, consider rolling it over to a contract with a closer expiration date.
• This allows users to maintain their exposure to the underlying asset while adjusting the contract's terms.

3. Settle the Contract:

• For physically settled contracts, it may be possible to settle the contract by delivering or receiving the underlying asset.
• Contact the Upbit support team for guidance on the settlement process.

Understanding Futures Contracts on Upbit

Upbit offers perpetual futures contracts, which are contracts without a fixed expiration date. These contracts are cash-settled, meaning they are settled in the exchange's native Stablecoin, KRW-B.

When trading futures contracts on Upbit, users should be aware of the following:

• Margin: Futures trading requires using leverage, meaning traders can borrow funds from the exchange to increase their trading positions. However, leverage also amplifies potential losses.
• Funding Rate: Perpetual futures contracts have a funding rate that is paid or received every 8 hours. This rate is based on the difference between the contract price and the spot price of the underlying asset.
• Liquidation Price: If the value of a trader's collateral falls below a certain threshold, their position will be liquidated, automatically closing the contract.

Step-by-Step Process for Closing Upbit Futures Contracts

To close a futures contract on Upbit, follow these steps:

1. Log in to your Upbit account.
2. Navigate to the "Futures" page.
3. Select the contract you want to close.
4. Enter the quantity you want to close.
5. Click on the "Close" button.
6. Confirm the closing price and execution fee.
7. Click on the "Confirm" button to complete the transaction.