All USDT-margined contracts are settled every 8 hours, that is, three times a day, separately at 00:00, 08:00 and 16:00 (UTC).
During the settlement, all trading will be suspended and its resumption time depends on the system’s execution time.
The suspension and resumption time of USDT-margined contract trading are distinguished by the trading pairs and the trading modes. For contracts that only support the isolated mode, the trading can be resumed after its settlement. For example, the EOS/USDT swaps is still in settlement while other swaps have completed the settlement, then the other swaps could resume trading first. While for contracts that support both the cross and isolated margin mode, the trading could be resumed after the completion of settlements of all contracts under the cross margin mode.
Currently, the cross-margin account of USDT-margined swaps as well as the isolated-margin account of 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 adopt real-time settlement mechanism.
That is, when Tom holds isolated-margined BTC, ETH, LTC, LINK, XRP, TRX, DOT, ADA, EOS, BCH, BSV, YFI and UNI account or hold any pairs in the cross margin mode, the realized profit (deducting floating loss and occupied margin, etc.) is available to transfer at any time after the position is closed, thus effectively improving the fund efficiency.
1. Please note that real-time settlement function will be automatically adjusted according to system's judgment 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 risks.
USDT-margined contracts take the Volume Weighted Average Price (VWAP) in last 10 minutes before the settlement as settlement price (denominated currency);
Settlement Price=Sum (Volume per Transaction (cont)* Transaction Price)/Sum (Volume per Transaction (cont))
The following changes may occur during the settlement:
- The system will calculate the user’s unrealized PnL and funding based on the settlement price and the 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.
- After the settlement, the position price of the contract will change with the current-period settlement price. Subsequent unrealized PnL will be calculated based on this new settlement price.
- For contracts that only support the isolated margin mode, the settlement is separate for each swap, and the funding are paid between the holders of long and short positions of a certain swap.
- Cross margin account is different from the isolated margin account, therefore the settlement and funding are also calculated separately.
- USDT-margined futures do not involve any funding.
8:00 (UTC) on Friday of the last week before the expiration
The system will take the arithmetic mean value of index price of each asset, such as BTC/USDT index price, over the last hour before delivery.
When a contract expires, the system will implement the delivery by adopting spread delivery (cash delivery) method.
And the system will close all existing positions with the delivery price.
The PnL from the delivery will be transferred into realized PnL.
Transaction fees will be generated from the delivery, which will also be calculated into realized PnL.
In the last 10 minutes before delivery, users are allowed to close positions, but not allowed to open positions.