What is delisting?
Delisting is the removal of a listed asset from an exchange. The delisting can be voluntary or involuntary and usually happens when a project ceases operations, does not meet listing requirements, undergoes a hard fork, or splits or reverse split occasions with new coins. There are numerous factors that could go into the decision for an exchange to delist an asset.
What to expect during delisting?
When an asset is delisted from an exchange, all its trading pairs will stop trading and be removed. An official announcement will be released prior to the cessation of the trading date to acknowledge all users. Users are still able to trade until the cessation of the trading date.
During the last hour on the cessation of the trading date, the mark price of the delisted asset will be calculated as the average of the price index every second over the last hour before cessation, i.e., a total of 3,600 mark price.
It is important to note that from 10 minutes before trading is suspended, you are not allowed to open new positions of the delisted asset. You can only close existing positions, i.e., placing reduce-only orders within 10 minutes before the cessation of trading. Binance reserves the right to suspend trading anytime (i.e., on or before 10 minutes before the effective asset delisting time). Please refer to the announcement for the exact time that trading is suspended.
If you choose to hold the position until the cessation of trading, the position will be automatically closed or settled. Please note that trading fees will be charged for the automatic settlement. All unrealized P/L is calculated at the time of settlement and converted into realized P/L.
You are advised to close any open positions of the delisted asset before the cessation of trading to avoid automatic settlement.