To enable OKEx futures trading, user must fully read, understand to and agree to "OKEx Futures Trading User Agreement". Please read through all the terms and conditions carefully, particularly the disclaimer of liability, before choosing to accept this agreement.
Please note that users must agree to and comply with the agreement before using OKEx futures trading and the related services. By logging into, viewing or releasing information about futures trading, the user agrees to abide by the terms of the agreement.
1.1 Futures trading is a digital asset derivative launched by OKEx. It is also a trading platform designed, managed, and operated by OKEx.
1.2 Users must acknowledge and confirm that:
He/she is 18 or older when registering in OKEx and accepting this agreement; This agreement does not contradict with the laws of the country or region where the user is from; He/she complies with OKEx trading rules and futures trading rules.
Otherwise, user should stop using or registering for our services immediately.
2. Futures trading rules
2.1 The tokens available in futures trading includes BTC, LTC and other digital assets approved by OKEx. All contracts are traded and priced in USD.
2.2 The face value of a BTC contract is USD100 and the prices in the order book is aggregated to USD0.01. The face values of LTC and other tokens contracts are USD10 and the prices in the order book are aggregated to USD0.001.
2.3 Weekly, bi-weekly and quarterly contracts are available in futures trading. Weekly contracts will be settled on the imminent Friday; Bi-weekly contracts will be settled on next Friday; Quarterly contracts will be settled on the last Friday of March, June, September and December. However, the delivery date of each contract shall not be identical with each other, and it is based on Hong Kong time (UTC+8).
2.4 All contracts will be settled on the delivery date at 16:00 (Hong Kong time, UTC+8). All open but expired contracts will be closed at "settlement" price, which is the average index price of the token within the hour prior to the settlement. Trading of new contracts will begin at 16:10 (UTC+8) on the delivery date.
2.5 If market anomalies occur before or after settlement and delivery, which results in wide fluctuation of futures index or abnormal clawback rate, we may postpone settlement and delivery as the case may be. We shall post an announcement regarding detailed rules.
3. Trading Rules
3.1 Orders can be placed via our website, clients, API or other channels approved by OKEx. The orders must include price, quantity, opening side, closing side and other information required by OKEx.
3.2 When an open-order is executed and filled, the corresponding futures position is opened. Before the position is closed, unrealized profits and losses occur when the price moves. It can be used as margin of the contract, but cannot be withdrawn.
Unrealized profits and losses for long position = (face value / settlement price - face value / current price) * number of contracts
Unrealized profits and losses for short position = (face value / current price - face value / settlement price) * number of contracts
3.3 When a close-order is executed and filled, the corresponding futures position is then closed. The unrealized profits and losses will therefore, become realized. It can be used as margin of the contract, but cannot be withdrawn until the contracts are settled.
Realized profits and losses for long position = (face value / settlement price - face value / closed position) * number of contracts
Realized profits and losses for short position = (face value / closed position - face value / settlement price) * number of contracts
3.4 All contract settlements will occur at 16:00 (Hong Kong Time, UTC+8) of the delivery date. All holding positions will be closed at settlement price and all unrealized profits and losses will be realized. The realized profits and losses will be transferred to the equity balance, after covering any losses of all contracts. The available balance can be used as contract margin or be withdrawn.
3.5 If market anomalies occur before or after settlement and delivery, which results in wide fluctuation of futures index or abnormal clawback rate, we may postpone settlement and delivery as the case may be. We shall post an announcement regarding detailed rules.
4. Risk Management Rules
4.1 OKEx futures adopts fixed-margin, cross-margin and liquidation price modes. Investors can only choose either fixed-margin or cross-margin mode according to their trading style.
If a user chooses cross-margin mode, the total equity balance in his/her futures account, plus all the realized profits and losses will be used as positions margin (margin ratio = total margin / positions margin - adjustment coefficient). For 10x leverage, the adjustment coefficient is 10%; For 20x leverage, the adjustment coefficient is 20%; When the margin ratio is equal to or below 0, the account will be liquidated. All positions will be force-closed, while liquidation orders remain unfilled will be covered by insurance fund or socialized.
If a user chooses fixed-margin mode, the initial margin required will also be the position margin. (The margin ratio = (position margin + UPL) / initial margin - adjustment coefficient) For 10x leverage, the adjustment coefficient is 10%; For 20x leverage, the adjustment coefficient is 20%; When the margin ratio is equal to or below 0, the account will be liquidated. All positions of the same side of this contract will be force-closed. While the positions of the other side and other contracts will not be affected.
4.2 Cross margin mode: all BTC and LTC available in the futures account will be regarded as position margin. The margin amount, therefore, will change according to price fluctuation. When the futures price moves towards a direction which is unfavorable to the investor, the equity of the investor will be decreased. When the margin ratio is equal to or below 0, the account will be liquidated. The loss will be equal to or close to the equity balance of his/her futures account. A user may increase the margin or change the number of contracts to manipulate the leverage multiplier. The higher the margin, the lower the contract number, hence lower leverage multiplier and lower risk of triggering a forced liquidation.
4.3 Fixed margin mode: the initial margin will be regarded as the position margin. So, the margin amount remains unchanged even when the futures price fluctuates. When the futures price moves towards a direction which is unfavorable to the investor, unrealized losses occur. (The margin ratio = (position margin + UPL) * avg. opening price * leverage / (face value * no. of contracts) - adjustment coefficient) For 10x leverage, the adjustment coefficient is 10%; For 20x leverage, the adjustment coefficient is 20%; When the margin ratio is equal to or below 0, the account will be liquidated. The loss will be equal to or close to the initial margin placed for the side of the contract.
4.4 Liquidation price modes: To avoid volatile market movements which leads to forced liquidation of multiple positions, OKEx futures provides liquidation price mode for investors to minimize the risk. When a user's account is liquidated, all the holding positions will be closed at a price to alter the account's equity balance to zero, instead of market price. This mode can avoid hammering the market and minimize price movements in futures trading. If the liquidated orders are not fully filled after settlement, the unfilled orders will be regarded as bankruptcy positions and will be socialized with the profits made among all users of all futures markets.
4.5 If the size of a user’s position or open orders accumulate to a level which poses a clawback threat to the futures trading system or other users, OKEx may request to cancel your orders or close part of your position. As a final measure, OKEx reserves the right to limit or partially cancel the position or orders to reduce the risk in the system.
4.6 If there are liquidation orders remained unfilled after settlement, such orders will be closed at settlement price. The loss generated will be credited into contract losses and will be covered by the previous profits of this contract.
5. Enable Order Types
Once futures trading is enabled in a user's account, the order types "limit order, trigger order, trail order, iceberg order and TWAP" are also enabled. Order types are automatic investment tools provided by OKEx. An order type allows a user to execute trade actions at pre-determined price levels. These trading parameters are based on fixed logic programming and has detailed explanation in the instructions. OKEX does not perform any manual intervention during the process of executing strategies.
A. When using the order tools, customers shall be deemed to have fully understood the potential risks. The user is solely responsible for the trading strategy he/she creates using these tools and unconditionally accepts the outcome.
B. Prior to using the order tools, customers should carefully read the instructions provided in order to fully understand the execution logic of each parameter. OKEx does not accept any responsibility due to incorrect parameter inputs or lack of understanding by the user. Moreover, OKEx accepts no responsibility if the outcome of the customer's strategy differs from his/her expectations.
C. During extreme market conditions (including but not limited to price volatility), a user's anticipated results may differ from the actual outcome. Users should therefore fully understand the risks and be aware of potential volatility when setting the trading parameters. OKEx does not assume any responsibility if, due to extreme market conditions, the result of an order type does not meet expectations.
D. Factors which are out of OKEx’s control (including but not limited to network latency and computer system failure) may cause slow execution, suspension or cancelation of user's order type. OKEX will endeavor to ensure its trade execution systems are stable at all times. Nevertheless, OKEx does not assume any responsibility if such events cause the result of a user's trading strategy to differ from the anticipated result.
E. OKEx reserves the right to add, remove or make adjustments to the order tools at any time. Such changes shall be made known through an announcement.
6.1 Users who trade in futures shall comply with the principles of fairness and impartiality
6.2 OKEx reserves the right to enact executive control over accounts if malicious price manipulation or any other malicious wrong doing occurs. If required, OKEx reserves the right to close accounts, limit trading, halt trading, cancel transactions, and rollback transactions to eliminate any adverse effects in the futures market.
6.3 If the size of a user’s position or open orders accumulate to a level which poses a clawback threat to the futures trading system or other users, OKEx may request to cancel your orders or close part of your position. As a final measure, OKEx reserves the right to limit or partially cancel the position or orders to reduce the risk in the system.
6.3 OKEx will not be responsible for any losses occurred due to uncontrollable situations, which include but not limited to:
- OKEx system maintenance as announced through announcements;
- internet device malfunctions which disabled data transfer;
- war, riots, floods, earthquakes or any other unexpected disruptions;
- hacking attacks, computer virus, internet network malfunctions, backing issues, service suspension, delay or cancellation due to the interruption of government;
- unpredictable or unresolvable issues with the technologies currently available
- caused by third parties including inappropriate or delated executions
6.5 Network failures, system failures, hacking attacks, and other unforeseen factors have the potential to cause abnormal turnover, market interruptions and other possible anomalies. OKEx reserves the right to cancel and/or roll back transactions over a period of time in which it deems sufficient to mitigate any detrimental market effects.
6.6 OKEx strictly prohibits unfair trading behaviors, including but not limited to exploitation of loopholes and malicious abuse through large or continuous commissions with the goal of manipulating price and volume. OKEx reserves the right to cancel and/or roll back transactions over a period of time in which it deems sufficient to mitigate any detrimental market effects.
6.7 OKEx reserves the right to add, remove or modify any of the above rules at any time. Any such changes to the rules or product designs shall be made known in advance through OKEx’s website by announcement.
6.8 The validity, explanation, alteration, execution and dispute resolution of this user agreement shall be governed by the law of PRC. of Belize.
6.9 If there is any dispute between a user and OKEx, both parties should try to work out a resolution through negotiations. However, if the attempt is unsuccessful, both parties should agree to resolve the disagreement or dispute through Belize judiciary
6.10 All the headings in this agreement are for reading convenience only and shall not affect its interpretation.