Expiry futures settlement rules

When coin-margined futures and USDT-margined futures are settled at expiry, the platform will calculate the settlement price using the average of index prices in the last hour before expiration (200 ms per sampling point), at which all positions will be settled, and the profits or losses will be applied to users accounts.

Pending orders at settlement will be cancelled, and all the positions will be settled at the settlement price.

Example

A user holds a long position of 1,000 contracts at $15,000 in BTCUSD 1204 weekly expiry futures. He holds it till settlement, which happens at 4:00 p.m. on Dec 4th (HKT). Base on the weighted average of index prices in the last hour before the expiration, the settlement price is $19,000. The profit/loss for him is:
Face value * number of contracts / avg. opening price – face value * number of contracts / exercise price
= 100 * 1,000 / 15,000 - 100 * 1,000 / 19,000 = 1.4035 BTC

After the contract is exercised, the short position of BTCUSD 1204 weekly expiry futures will be closed, and the user's account balance will be increased by 1.4035 BTC (ignoring transaction fees).

In extreme markets, users’ account balance after the settlement may be a negative number due to a big loss. In this case, the negative balance will be covered by the security fund, and a bill of "delivery clawback" will be created for the user’s account.