To enhance your trading experience and improve capital efficiency, OKX is rolling out a new daily settlement feature for select expiry futures contracts in cross-margin mode. This update applies to ETH-USD, ETH-USDT, BTC-USDT, and BTC-USD futures contracts, streamlining how profits and losses are accounted for on a daily basis.
How Daily Settlement Works
The daily settlement process occurs automatically every day at 08:00 am UTC. Here’s what happens during each settlement cycle:
- Your position’s realized profit or loss (PnL) is calculated and credited directly to your account balance.
- The entry price for your open positions is reset to the latest settlement price.
- Floating PnL is recalculated based on this new entry price, reflecting ongoing market movements.
- No fees are charged for the settlement process, and your position size remains unchanged.
The settlement price itself is derived from the average mark price recorded during the final hour leading up to the settlement time (07:00–08:00 am UTC). This mechanism is designed to reduce volatility impacts and provide a fair valuation benchmark.
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Implementation Timeline
OKX is phasing in this new daily settlement system gradually:
- ETH-USD and ETH-USDT expiry futures: Daily settlement begins at 08:00 am UTC on March 22, 2025.
- BTC-USDT and BTC-USD expiry futures: The launch date is yet to be confirmed. OKX will make a separate announcement once a timeline is finalized.
Note that this feature is exclusive to cross-margin accounts and does not apply to isolated margin positions.
Benefits of Daily Settlement
Daily settlement offers several advantages for active traders:
- Improved capital efficiency: Realized PnL is credited daily, freeing up margin for new positions or risk management.
- Transparent accounting: Regular settlement simplifies tracking of performance and reduces end-of-contract settlement surprises.
- Reduced counterparty risk: Frequent settlement mitigates potential risk accumulation over long periods.
This update is particularly useful for traders who hold positions for multiple days or weeks, as it provides clearer daily accountability.
Risk Management and Disclaimers
While OKX aims to maintain a stable trading environment, market conditions can sometimes necessitate operational adjustments. OKX reserves the right to temporarily suspend the daily settlement mechanism during periods of extreme market volatility or unforeseen risks. Such decisions are made to protect user funds and platform integrity.
If suspension occurs, OKX will reassess market conditions and re-enable the feature as soon as it is safe to do so. No prior notice may be provided in emergency scenarios, though OKX will communicate updates via official channels afterward.
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Frequently Asked Questions
What is daily settlement in futures trading?
Daily settlement is a process where the profit or loss of a futures position is calculated and credited to the trader’s account on a daily basis. This updates the account balance and resets the position’s entry price to the latest settlement price.
Will I be charged a fee for daily settlement?
No. The daily settlement process is fee-free. Your account balance is updated with realized PnL without any deduction, and your open position size remains unaffected.
Which contracts support daily settlement?
Currently, the feature is available for ETH-USD, ETH-USDT, BTC-USDT, and BTC-USD expiry futures contracts in cross-margin mode. Isolated margin contracts are not included.
What happens if the market is highly volatile at settlement time?
OKX uses a one-hour mark price average (from 07:00 to 08:00 am UTC) to determine the settlement price. This minimizes the impact of short-term price spikes or abnormal fluctuations.
Can OKX pause this mechanism?
Yes. OKX may temporarily disable daily settlement during extreme market events to mitigate systemic risks. The feature will be restored once conditions normalize.
How does daily settlement affect my trading strategy?
It allows for daily realization of gains and losses, which can improve margin usability. Swing traders and medium-term holders may find it easier to manage cash flow and compounding strategies.
This upgrade is part of OKX’s ongoing effort to provide a more efficient and user-friendly derivatives trading environment. For the latest updates, refer to the official OKX announcement channel or help center.