OKX has announced a new schedule for introducing the daily settlement mechanism for specific Bitcoin futures contracts operating in cross-margin mode. This update provides traders with more time to prepare for the upcoming changes to how these contracts are managed.
The implementation of the daily settlement process for both BTC-USDT and BTC-USD expiry futures in cross-margin mode has been rescheduled. Instead of commencing on March 29, 2025, at 08:00 am UTC, it will now begin one week later, on April 05, 2025, at 08:00 am UTC. This adjustment offers the trading community additional time to understand the new mechanics.
Understanding the Daily Settlement Process
The core function of this update is the daily settlement event, which will occur every day at 08:00 am UTC. This process involves several key steps designed to update account balances and position metrics in a transparent manner.
Upon each daily settlement, the realized profit and loss (PnL) for your open positions is calculated and immediately credited to your available account balance. Concurrently, the system updates the position's average entry price to reflect the most recent settlement price. Following this update, any floating PnL for the position is recalculated based on this new entry price against the current market price.
It is important to note that this settlement process is a non-disruptive event. Traders will not be charged any fees for the settlement, and the size of their open positions will remain completely unchanged. The settlement price itself is derived from a fair and transparent calculation: the arithmetic average of the mark price sampled every second in the final hour leading up to the 08:00 am UTC settlement time.
This new mechanism applies exclusively to futures contracts held in a cross-margin account mode.
Key Considerations for Traders
Staying informed about exchange updates is a crucial part of effective risk management. While this change aims to increase capital efficiency by regularly realizing PnL, traders should be aware of how it integrates with their overall strategy.
The daily credit of settled PnL can provide more flexible access to funds, which can be particularly useful for managing margin requirements across a diverse portfolio. For those looking to deepen their understanding of such advanced trading mechanisms, a wealth of information is available. You can explore more strategies and detailed explanations to see how daily settlement might fit into your approach.
It is also critical to remember that trading environments are dynamic. OKX has included a standard risk notice stating that they reserve the right to temporarily suspend this daily settlement mechanism without prior notification should extreme market conditions warrant it. The feature would be reinstated only after a thorough assessment confirms that market risks have subsided to acceptable levels.
Frequently Asked Questions
What is the new start date for daily settlement?
The daily settlement mechanism for BTC expiry futures in cross-margin mode will now begin on April 5, 2025, at 08:00 am UTC. This is a postponement from the original date of March 29, 2025.
How does the daily settlement affect my position and balance?
At 08:00 am UTC each day, your realized PnL is credited to your available balance. Your position's entry price is then reset to the settlement price, and floating PnL is recalculated from that new base. Your position size is not altered, and no fee is charged for the settlement.
Is the daily settlement mechanism mandatory for all futures contracts?
No, this specific daily settlement process only applies to BTC-USDT and BTC-USD expiry futures contracts that are being held in cross-margin mode. Other contract types or margin modes operate under their own distinct settlement rules.
Where can I learn more about how the settlement price is calculated?
The settlement price is determined by taking the average of the mark price over the sixty-minute period immediately before the settlement time. This method is designed to create a fair and manipulation-resistant price point for the daily settlement event.
Can OKX change or pause this mechanism after it launches?
Yes, according to the announcement, OKX retains the right to temporarily close the daily settlement mechanism without advance notice if deemed necessary due to market risks. It would be reopened following a subsequent risk assessment.
Will this change how my initial margin is calculated?
The daily settlement primarily affects the realization of PnL and the updating of your entry price. While the credited PnL increases your available balance, which can affect your margin calculations indirectly, the core rules for initial margin requirements on the position itself remain governed by the existing cross-margin rules. For a comprehensive view of advanced risk management tools, you can view real-time tools that provide deeper analytics.