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Crypto Derivatives
Futures Contracts
COIN-Ⓜ Futures Contracts
Delivery & Settlement of Quarterly Futures
Binance
2020-09-09 09:25
Click the video to learn more
  • Delivery time
Quarterly futures contracts deliver 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 case of 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 Futures Contract (3 and 6 months quarterly of the March, June, September, December cycle) that reaches its expiration date.
Click here for Contract Specifications
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 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 contract, and the K-line of the new 0326 quarterly contract will continue on the historical K-line of the original 1225 quarterly contract.
  • Delivery method
Cash settlement in underlying asset (e.g. BTC)
  • 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 mark price.
  • Settlement Fee
A flat 0.015% of settlement fee is charged 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 but not open any new position in 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 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%).

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About Quarterly Futures Contract