Warrant settlement rules

1.  Call warrant

Upon exercise (either in advance or upon expiration), if the settlement price is less than or equal to the exercise price, no payment will be made to the user.

Upon exercise (either in advance or upon expiration), if the settlement price is greater than the exercise price, the payment = the amount of your order * (settlement price-exercise price).

 

Case:

A user bought an American call warrant (5-minute term) with an exercise price of 56,000 and an order amount of 0.1 BTC.

 

a. If the user chooses to exercise the right in advance, the payment to the user is as follows:

The settlement price is 55,000, which is less than the exercise price, so no payment is made.

The settlement price is 57,000, which is greater than the exercise price, so the payment = 0.1 * (57000-56000) = 100USDT

 

 b. If the user chooses to exercise the right upon expiration, the payment to the user is as follows:

The settlement price is 55,000, which is less than the exercise price, so no payment is made.

The settlement price is 57,000, which is greater than the exercise price, so the payment = 0.1 * (57000-56000) = 100USDT.

 

2.   Put warrant

Upon exercise (either in advance or upon expiration), if the settlement price is greater than or equal to the exercise price, no payment will be made to you.

Upon exercise (either in advance or upon expiration), if the settlement price is less than the exercise price, the payment = the amount of your order * (exercise price - settlement price).

 

Case:

A user bought an American put warrant (10-minute term) with an exercise price of 56,000 and an order amount of 0.1 BTC.

 

a. If the user chooses to exercise the right in advance, the payment to the user is as follows:

The settlement price is 57,000, which is greater than the exercise price, so no payment is made.

The settlement price is 55,000, which is less than the exercise price, so the payment = 0.1 * (56000-55000) = 100USDT

 

 b. If the user chooses to exercise the right upon expiration, the payment to the user is as follows:

The settlement price is 57,000, which is greater than the exercise price, so no payment is made.

The settlement price is 55,000, which is less than the exercise price, so the payment = 0.1 * (56000-55000) = 100USDT.

 

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Huobi Global reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice. The above is for information purposes only and Huobi Global makes no recommendations or guarantees in respect of any digital asset, product, or promotion on Huobi Global. Prices of digital assets are highly volatile and trading digital assets is risky. Please read our Risk Reminder text here.