How Settlement Works
When OKX's Coin-Margined Futures, USDT-Margined Futures, or Coin-Margined Options contracts reach expiration, the platform calculates the final settlement price using a weighted average of the index price during the last hour before expiry. This price determines:
- Futures Contracts → Settlement Price
- Options Contracts → Exercise Price
All positions are then cash-settled automatically, with profits or losses credited to users' accounts.
Key Process Details
- Any outstanding orders for expiring contracts are canceled
- Positions are settled at the calculated price
- Settlement results reflect in account balances instantly
Settlement Examples
BTC Futures Example
Scenario:
- User holds 1,000 BTCUSD weekly 1204 long contracts (entry: $15,000)
- Settlement price: $19,000 (calculated from last hour's weighted average)
Calculation:
👉 Learn about futures calculations
(100 × 1,000 ÷ 15,000) - (100 × 1,000 ÷ 19,000) = +1.4035 BTC
Outcome:
Position closes, account receives 1.4035 BTC (excluding fees)
ETH Options Example
Scenario:
- User sold 100 ETHUSD-20201204-600-P contracts
- Exercise price: $580 (below strike price of $600)
Calculation:
1 × 1 × (-100) × (600 - 580) ÷ 580 = -3.4483 ETH
Outcome:
Position closes, account loses 3.4483 ETH (excluding fees)
Risk Management
In extreme market conditions:
- Accounts may temporarily show negative balances
- Platform's risk reserve covers negative amounts
- Users receive transaction records noting "settlement deficit coverage"
FAQs
Q: How is the settlement price determined?
A: Weighted average of the index during the last hour before expiry.
Q: What happens to open orders at settlement?
A: All pending orders for expiring contracts are automatically canceled.
Q: Can I lose more than my account balance?
A: Yes during extreme volatility, but the platform covers deficits via its risk reserve.
Q: Are there fees for settlement?
A: Yes, standard settlement fees apply to all closed positions.