Settlement

Settlement Time

The settlement cycle of USDT-margined swaps for all assets is 8 hours. There are 3 settlements per day, which are at 00:00, 08:00 and 16:00 (GMT+8).

The suspension and resumption of perpetual swaps trading are distinguished by the assets and the trading modes. For swaps that support only isolated mode, the trading can be resumed after its settlement. For example, the LTC swaps is still in settlement while other swaps have complete the settlement, then the other swaps could resume trading first. While for swaps that support both cross margin mode and the isolated margin mode, the trading could be resumed after the settlements for all swaps under the cross margin mode.

Currently USDT-Margined Swaps cross-margin account and BTC/USDT, ETH/USDT, LTC/USDT, LINK/USDT, XRP/USDT, TRX/USDT, DOT/USDT, ADA/USDT, EOS/USDT, BCH/USDT, BSV/USDT, YFI/USDT and UNI/USDT isolated-margin account adopt real-time settlement mechanism which will go on a trial run until June 30, 2021 (GMT+8).

That is, the user holds USDT-Margined swap of BTC、ETH、LTC、LINK、XRP、TRX、DOT、ADA、EOS、BCH、BSV、YFI andUNI in the isolated margin and cross margin mode. After the position is closed, the realized profit (deducting floating loss and occupying margin, etc.) supports transfer at any time , No need to wait until after settlement, thus effectively improving the efficiency of fund use.

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  real-time settlement without further notice. Please be aware of the risk.

 

 

Settlement Price

  • The system takes the Volume Weighted Average Price (VWAP) in last 10 minutes before the settlement as settlement price (denominated currency);
  • Settlement price=sum (volume per transaction(conts)* transaction price)/sum (volume per transaction(conts))

The following changes may occur during the settlement:

  1. The system will calculate the user’s unrealized PnL and funding based on the settlement price and the quantity of positions. Then the unrealized PnL and funding will be merged into realized PnL. The realized PnL will be transferred to users’ account balance after clawback.
  2. After the settlement, the average position price of the contract will become this-period settlement price. Subsequent unrealized PnL will be calculated based on the new settlement price.

Note:

  1. For swaps that only support isolated margin mode, the settlement is separately for each swaps, and the funding are paid between the holders of long and short positions of a certain swap.
  2. Cross margin account and isolated margin account are two different accounts, therefore the settlement and the funding are also calculated separately.