Settlement & Delivery

Settlement time

To effectively improve the fund utilization for our users, Huobi Futures will support daily settlement for coin-margined futures on a trial basis until June 30, 2021(GMT+8).

Daily settlement: users' unrealized PnL will turn to the realized PnL after the daily settlement at 16:00 (GMT+8). With no need to wait until the settlement or delivery every Friday, the daily settlement function allows traders to withdraw the realized profits (minus unrealized loss and occupied margin) instantly after the daily settlement at 16:00 (GMT+8), which effectively improves the utilization of funds.

BTC/ETH/LTC/LINK/TRX/XRP/ADA Contracts adopt real-time settlement mechanism .With this service, users can withdraw the realized profits (deducting the floating losses and frozen margin) instantly after closing the BTC/ETH/LTC/LINK/TRX/XRP/ADA Contracts. BTC/ETH/LTC/LINK/TRX/XRP/ADA contracts users don’t have to wait and withdraw until weekly settlement on each Friday, allowing more flexibility for use of funds.

Reminder:

1. Please note that real-time settlement function will be automated according to system's estimate on insurance fund coverage. When great risk is detected, system will automatically stop the real-time settlement function without further notice.

2. If there should occur a violent market, Huobi Futures has the right to temporarily suspend the daily settlement and the real-time settlement without further notice. Please be aware of the risk.

 

Settlement price

System takes the Volume Weighted Average Price (VWAP) of last hour of the traded price for that contract.

Settlement price=sum (Volume per transaction(conts))/sum (Volume per transaction(conts)/Price per transaction)

 

What is settlement

Everyday, all contracts undergo settlement at 16:00 (GMT+8).

After the settlement, users can transfer the profit and loss into the account balance, allowing users to make use of the profit (if any). However, settlement does not affect the equity of the account.

The following changes may take place during settlement:

  1. The UPL that needs to be settled will be calculated from the settlement price, standard settlement price and the number of existing positions, which will be integrated into the RPL. And the RPL of each contract will be transferred into the account balance after clawback.
  2. After the settlement, the average position price of the contract will become the settlement price. Subsequent UPL will be calculated based on the new settlement price

 

Delivery Time

16:00 Friday (GMT+8) of the last week of the contract

 

Delivery Price

The price is the arithmetic mean value of last hour of USD indexes of each coins before delivery.

 

Delivery Rules

When contracts expire, delivery will take place, which is executed in digital asset price difference to close the positions on all expired contracts. 

The profit and loss generated from the delivery will be added into RPL.

Commission will be generated during the delivery, which will also be calculated into RPL.

In last 10 minutes before delivery, users can close positions, but not open positions.