Gate Delivery Futures refer to the derivative of digital assets settled with USDT and BTC.
It's a contract to buy or sell a particular underlying asset at a predetermined price at a specified time (this week, next week, this quarter) in the future. It's different from perpetual futures in that the delivery futures have a delivery date (that the contract will expire). When the delivery futures expire, both buyer and seller are obliged to perform the contract and complete the contract.
Instruction of the code of Delivery Futures
Take the BTC_USDT0730 this week as an example:
BTC refers to the base currency of the delivery futures; USDT refers to the quote currency of the delivery futures; 0730 refers to the expiring date, that is the delivery date; This week refers to a duration of one week, that means the contract will expire this week.
Delivery refers to the process for settling the unrealized liquidation or a holding contract on the delivery date. Gate uses the average weight index price before settlement as the settlement price, to prevent the risk of instant market manipulations. The duration time differs for each contract, normally one hour. For more information, please refer to the Contract Details.
Instead of a daily basis, Gate delivery futures will only be settled on the expiring date. No other contracts will be suspended during settlement.
The settlement time for the weekly contract is 8:00 UTC (16:00 UTC+8) every Friday. The settlement time for the quarterly contract is 8:00 UTC, the last Friday of that quarter.
Gate applies the mark price as the basis of liquidation and adopts the ADL and Funding Insurance mechanism similar to the perpetual futures so that there will be no loss-sharing.
It can be interpreted as:
On a certain trading pair, both buyers and sellers agreed on using the average weight index price a while before one week as the final settlement price. On the delivery date, regardless of the PNL, the position will be liquidated once reaches the specified time. The contract cannot be held. Also, Buyers and sellers may choose to close their positions anytime before the settlement.
Risk Warning
The leverage ratio and risk of futures trading are high. Please make sure to have sufficient knowledge of the trading rules, and keep the investment risks at affordable levels.
Gate reserves the final right to interpret the product.
