OKX Futures and Options Settlement Rules Explained

Understanding Settlement Mechanics

When futures contracts (coin-margined or USDT-margined) and coin-based options contracts reach expiration, OKX follows a transparent settlement process:

1. Price Determination: The platform calculates the weighted average of the index price during the final hour before expiration.

2. Cash Settlement: This calculated price becomes either:

   • The settlement price for futures contracts
   • The exercise price for options contracts
3. Position Liquidation: All open positions are automatically settled at this reference price.

Key Features:

• Automatic cancellation of pending orders at settlement
• Immediate balance adjustments post-settlement
• Protection against extreme market conditions via risk reserve funds

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Practical Settlement Examples

Futures Contract Settlement

Scenario: Trader holds 1,000 BTCUSD weekly long contracts

• Entry price: $15,000
• Settlement price: $19,000

• Profit calculation:

  (100,000/15,000) - (100,000/19,000) = 1.4035 BTC

  Result: Position closed, balance credited with 1.4035 BTC

Options Contract Exercise

Scenario: Trader sold 100 ETH put options

• Strike price: 600
• Settlement price: 580

• Obligation calculation:

  -100 × (600-580)/580 = -3.4483 ETH

  Result: Position closed, balance debited 3.4483 ETH

Risk Management Provisions

OKX implements safeguards for extreme market conditions:

• Negative balance protection via risk reserve funds
• Automatic "Settlement Loss Coverage" ledger entries
• Transparent accounting of all adjustments

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Frequently Asked Questions

What happens to my limit orders at settlement?

All pending orders for expiring contracts are automatically canceled at settlement time.

How is the settlement price calculated?

It's the weighted average of the index price during the 60 minutes preceding contract expiration.

Can I lose more than my account balance?

While settlement losses can create negative balances, OKX's risk reserve covers these situations and records them as "Settlement Loss Coverage."

Are there fees for settlement?

Yes, standard settlement fees apply. These are deducted before final balance adjustments.

How often do contracts settle?

This depends on the contract type - weekly, bi-weekly, quarterly, etc. Always check your specific contract's details.

Where can I see my settlement results?

All adjustments appear in your account balance and are recorded in your transaction history.