The planned listing of the ME (Magic Eden) token on the OKX exchange encountered a delay in its spot trading schedule. This guide provides a clear breakdown of the updated timeline, the exchange's risk management measures for new listings, and essential details about its pre-listed futures contract and associated settlement procedures.
Revised ME Token Listing Timeline
The exchange has announced a new schedule for the ME token listing process. All times are provided in UTC+8.
- ME Call Auction Period: December 10, 2024, from 9:30 PM to 10:30 PM.
- ME/USDT Spot Trading Commencement: December 10, 2024, at 10:30 PM.
- ME Withdrawal Open Time: December 11, 2024, at 6:00 PM.
Spot Market Opening Risk Control Rules
To protect investors from the extreme price volatility often seen with new token listings, the platform implements temporary trading restrictions for the first five minutes after spot trading begins.
- Market order trading is not permitted.
- The maximum amount for any single limit order is capped at $10,000.
These protective restrictions are automatically lifted five minutes after trading opens.
How the Call Auction Mechanism Works
The ME/USDT spot trading pair will be launched using a call auction mechanism, which lasts for one hour. This allows traders to place orders at their desired price before official trading begins. The system processes all submitted orders according to its rules to calculate a reference opening price.
For informational purposes, after the call auction concludes, the opening price provided by the project team will be displayed as the starting price for spot trading. It's crucial to understand that this project-provided price, often based on internal valuation, is for reference only. It is not determined by the call auction mechanism and does not affect the price at which your orders are ultimately executed.
Rules for Pre-Listed ME Futures Contract Settlement
The pre-listed futures contract for ME will be settled according to a specific set of rules.
Settlement Time
The pre-listed contract is scheduled for settlement 2.5 hours after the spot market officially launches. The final settlement price is calculated 2-3 hours after the spot listing. It is important to note that if the spot listing time changes, the contract settlement time will be adjusted accordingly. Users should monitor official announcements for any updates.
Settlement Price
The settlement price is derived from a multi-faceted process:
- Index Price: The index is composed of the spot trading pairs from at least three major exchanges.
- Final Calculation: The settlement price itself is the arithmetic average of the OKX index price taken over the one-hour period preceding the settlement. This price is used to settle all user positions for the expiring contract. The platform reserves the right to adjust the final settlement price to a reasonable level if the index price is subject to abnormal manipulation during the calculation period.
Following the settlement of the MEUSDT contract, users with a持仓 value greater than $10,000 at the time of settlement will have all asset transfers within their trading account restricted. This restriction is lifted after 30 minutes. Historical order and bill records for the MEUSDT contract remain available for query after settlement. Users can download these records from the "Order Center" on the exchange's web platform.
Due to the potential for highly volatile行情 leading up to settlement, users are strongly advised to manage their risk by reducing leverage or closing positions early. 👉 Explore more strategies for managing volatile market conditions. Any insolvency losses incurred at settlement will first be covered by the platform's risk reserve fund. If the fund is insufficient, the system will initiate automatic deleveraging, starting with the most profitable users.
Settlement Fee Rate
The settlement fee for this contract is set at 1%. Any changes to this rate will be communicated via an official announcement.
Price Limit Rules
The contract enforces strict price limits that evolve as it nears settlement:
After Contract Creation:
- Maximum Buy Order Price = 1-Hour Average Mid Price × (1 + 15%)
- Minimum Sell Order Price = 1-Hour Average Mid Price × (1 – 15%)
Within 60 Minutes Before Settlement:
- Maximum Buy Order Price = 1-Hour Average Mid Price × (1 + 5%)
- Minimum Sell Order Price = 1-Hour Average Mid Price × (1 – 5%)
The mid-price is calculated as (Best Bid Price + Best Ask Price) / 2, and these limits are recalculated every minute.
Frequently Asked Questions
What is a call auction in cryptocurrency trading?
A call auction is a process where buy and sell orders are collected for a set period before continuous trading begins. The system matches these orders at a single price that maximizes the volume of traded tokens, helping to establish a fair opening price based on collective market demand.
Why are there trading restrictions right after a new token lists?
New listings are notoriously volatile. Restrictions like banning market orders and capping order sizes help prevent extreme price swings and protect investors from making large, rushed trades at potentially unfavorable prices during the initial, most chaotic minutes of trading.
How is the futures settlement price determined?
The settlement price is not based on a single exchange's price. It is calculated as an average of an index price, which aggregates data from multiple major exchanges, over a specific time window (one hour before settlement). This method helps prevent price manipulation on a single platform from unfairly affecting the final settlement value.
What should I do if my account transfers are restricted after settlement?
This is a temporary automatic restriction applied to large positions (over $10,000) that lasts for 30 minutes post-settlement. No action is required; full transfer functionality will be restored automatically after this brief cooling-off period.
What happens if there is a loss that the risk reserve can't cover?
In the rare event of a loss that exceeds the platform's risk reserve fund, the system will initiate automatic deleveraging (ADL). This process automatically closes the positions of the most profitable traders on the opposite side of the market to cover the deficit, protecting other users from sharing the loss.
Investors are reminded that digital assets are innovative investment products with high price volatility and consequently high investment risk. It is essential to thoroughly understand the market, rationally assess your own investment capabilities, and exercise caution before making any investment decisions.