Delivery and Settlement of Quarterly Futures

 Trading FAQs    |      2020-09-09
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Delivery Time

Quarterly futures contracts deliver/settle at the expiration date, i.e. the last Friday of each calendar quarter at 08:00:00 UTC.
(For example, BTCUSD Quarterly 0925 futures contract will expire on the last Friday of the corresponding three-month period, which is on 25 September 2020 at 08:00:00 UTC.）
Note: In extreme situations where the price index fluctuates drastically caused by market manipulation or specific market circumstances near the delivery and settlement time, Binance will postpone the delivery and settlement process accordingly until further notice, an announcement will be made to all users.

Delivery Target

Coin-margined quarterly contracts on Binance follow the respective calendar cycle: March, June, September, December.
For more information on contract specifications, click here.
After the completion of delivery & settlement, a new quarterly contract will be generated, at the same time, the K-line of the contract will also change accordingly.
Example: When the 0925 quarterly contract is delivered at 08:00 (UTC) on September 25, 2020, the system will generate a new 0326 quarterly contract (expiry date: March 26, 2021). The K-line of the 1225 quarterly contract will continue on the historical K-line of the expired 0925 quarterly contracts, and the K-line of the new 0326 quarterly contracts will continue on the historical K-line of the original 1225 quarterly contract.

Delivery Method

Settlement in the underlying asset (e.g. BTC, ETH）

Settlement Price

The settlement price used for delivery of contracts will be calculated as the average of the price index every second over the last hour (between 7.00 and 08.00 UTC) before delivery, i.e. total 3600 price index.

Settlement Fee

The Settlement Fee is charged as the same as the taker fee for all positions settled on the delivery date.

Delivery Process

  1. When the quarterly contract expires, it will be delivered. The system uses a cash-settlement method to deliver.
  2. Expired open positions are closed at the settlement price.
  3. You are only allowed to close the positions and not open any new positions 10 minutes before delivery. i.e. Reduce Only is enabled.
  4. All unrealized P/L is calculated at the time of delivery and converted into realized P/L (pause 5~10 seconds), the delivery incurs a settlement fee, which is also included in the realized profits and losses*, thus the settlement fee needs to be deducted.
*Realized PnL = position_size * contract_multiplier * (1 / entry price - 1 / settlement price) - position_size*contract_multiplier* settlement fee/settlement price
  1. The realized P/L is reflected on the account balance, and delivery is completed.
  2. After the delivery is completed, the expired quarterly contracts will be offline, and subsequent new quarterly contracts will be offered online (under the same symbol but different ticker). A price limit* will be enforced to the new contract once it is online, and will be back to normal after 10 minutes：
*Max = price index * (1+10%) ; Min = price index * (1-10%).