Perpetual Swaps are settled daily at 16:00(HKT). The procedures are as follows:
1. Profit and Loss Settlement + Clawback
a.Transfer of UPL to RPL
UPL of the day will be transferred to RPL and settled profit, then UPL will reset. After settlement, all the positions’ UPL will be settled based on the new standard settlement price. The UPL formula of the settlement day: UPL = (swap face value * no. of swaps / standard settlement price of this Friday) – (swap face value * no. of swaps / standard settlement price of last Friday)
Standard settlement price: Before the settlement at 16:00(HKT), standard settlement price = avg. position price. After the settlement at 16:00(HKT)., standard settlement price = the last traded price before swap settlement.
Clawbacks will only occur if the insurance fund does not have enough funds to cover the system's total margin call losses. Only users that have a net profit for the day will be subject to clawback.
Clawback rate = (system losses + insurance fund) / Total net profit.
Clawback amount for the users who gained net profit = profit from swap * clawback rate.
The clawback amount will be deducted from the profit automatically.
c.Transfer of RPL to Balance
The realized profits and losses of the day will be credited to your balance. Under Fixed margin mode, the RPL will be credited to the positions’ fixed margin; under Cross margin mode, the RPL will be credited to the balance of the perpetual swap account.
2. Funding Fee:
- Funding fee is calculated by our system and is exchanged between traders. The amount will be transferred between users’ balance.
- Please see Funding Rate Calculation for details.
If market anomalies occur before or after settlement, which results in wide fluctuation of mark price or abnormal clawback rate, we reserve the right to postpone settlement in extreme cases. We shall post an announcement beforehand regarding detailed arrangements.