The settlement occurs every Friday at 17:58. All the Quarterly Contract will be settled (no debt settlement in the week), at which time all the unrealized will be settled into the realized at the last transaction price. The margin and PNL of the open positions will be recalculated at the settlement price, funds can be transferred out after the settlement.
- Weekly Mark-to-Market
The Quarterly Contract uses a weekly mark-to-market method, which occurs every Friday at 17:58. The settlement is only applicable to the Quarterly Contract before the settlement week. During the settlement, transactions suspended, order placing and matching will resume after the settlement. The unrealized profit and loss will be calculated according to the settlement price, base settlement price of the open positions and the amount of holding positions; in the cross margin mode, after the settlement, the base settlement price will de adjusted to the last settlement price and the unrealized profit and loss will be calculated based on the new base settlement price. If the user opens new positions after the settlement, the based settlement price will change, the realized and unrealized profit and loss, the position cost will change accordingly, but the actual equity of the user will not change.
A user longs BTC at a price of 3,000 USDT. When opening the position, there is a margin of 1,000 USDT in the account, and the user’s current asset is 1,000 USDT. Then the price drops to 2,800 USDT, without calculating the leverage, the unrealized PNL in the user’s account is -200 USDT and the current asset is 800 USDT, the loss of 200 USDT is caused by the price drop. (the calculation does not include the fee)
If the settlement occurs at this point, the user's unrealized PNL is settled. The base settlement price is adjusted to 2,800 USDT, and the unrealized profit becomes 0. Then the user's current asset is 800 USDT, which is the same as the amount before settlement and does not change due to the settlement.
If the price rises back to 3,000 USDT, and the unrealized profit becomes 200 USDT, then the current asset becomes 1,000 USDT, which is the same as the amount when the user opened the position at 3,000 USDT.
The rising market is similar to the case above.
- Settlement Time
Every Friday at 17:58. The settlement takes 10 minutes, during which the transaction and fund transfer are unavailable.
The delivery price is the arithmetic average price in the last 15 minutes of the Quarterly Contract. After the delivery, all of the user's positions will be closed at the delivery price and all orders will be canceled.