OKEX contracts undergo daily settlement at 4:00 PM. During this process:
Settlement Mechanics:
- Current position profits are transferred directly to your account equity
- The "settlement benchmark price" becomes your new opening price for recalculating unrealized P&L
- Closed position profits are calculated based on this benchmark price
Detailed Calculation Example
Scenario:
- January 20 settlement benchmark price: 8,700 USD
- Position details: 100 contracts (100 USD face value per contract)
Settlement Calculation:
- Profit distributed at settlement:
100*100/8,500 - 100*100/8,700 = 0.0270453 BTC - New unrealized P&L calculation:
100*100/8,700 - 100*100/8,600 = -0.01336541 BTC - Final closed position profit:
0.0270453 - 0.01336541 = 0.01367989 BTC
👉 Understand crypto contract strategies
Core Profit Formulas
Long Positions: Profit = Face Value * Contract Quantity / Entry Price - Face Value * Contract Quantity / Exit Price
Short Positions: Profit = Face Value * Contract Quantity / Exit Price - Face Value * Contract Quantity / Entry Price
Key Considerations
- Settlement prices ≠ actual trading prices
- Daily settlements reset your cost basis
- Unrealized P&L recalculates after each settlement
👉 Master advanced position management
FAQ Section
Q1: Why does my P&L change after settlement?
A: Your original position converts to new contracts priced at the benchmark rate, resetting cost basis.
Q2: How often do settlements occur?
A: Daily at 16:00 UTC+8 for all perpetual contracts.
Q3: Where can I view settled profits?
A: Check "Account Equity" > "Transaction History" post-settlement.
Q4: Are settled profits taxable?
A: Tax implications vary by jurisdiction—consult a financial advisor.
Q5: Can I avoid daily settlements?
A: No, this is mandatory for perpetual contract risk management.
Q6: How are benchmark prices determined?
A: Weighted average across major exchanges during a specific time window.
For further assistance, contact OKEX's 24/7 customer support team.