1. What are Delivery Futures?
Delivery futures are contracts to buy or sell an underlying asset at a predetermined price at the time of delivery (a specified time in the future), and stipulate the rights of both parties to trade on the delivery date. Delivery futures are settled in cash at the delivery time. It is a document of rights which states the obligation to make a delivery at the settlement time and at the settlement price. If the settlement price for delivery is greater than the opening price of the user's position, the long position (buyer) profits, otherwise, the short position (seller) profits.
Bitget currently supports delivery in BTC and ETH and delivery occurs directly through the futures contract.
2. Delivery Futures Rules
At present, Bitget offers quarterly futures with delivery time at 4:00 pm (UTC+8) on the last Friday of each quarter. The delivery futures code corresponds to the delivery date. Take BTCUSD1230 for example - it means that the delivery date of the BTCUSD1230 delivery futures is December 30, 4pm.
Bitget's delivery futures correspond to the delivery months of March, June, September, and December of each year.
In case of unusual market conditions around the delivery time, Bitget will adjust the delivery time according to the specific situation and issue an announcement stating the reason and the latest delivery rules.
Delivery fees will be charged at the settlement on the delivery date. The delivery fee rate for settlement is the same as the Taker rate.
Delivery will be made at the delivery price at the settlement time. In order to avoid irrational market fluctuations, the delivery price uses the arithmetic average of the index price for one hour before the settlement time.
- At the delivery time, delivery will be cash settled.
- For delivery futures with open positions before delivery time, the positions will be closed at the settlement price and the delivery fee will be charged at the delivery rate.
- During the first 10 minutes of the delivery time, delivery futures positions may not be opened.
- At the delivery time, the delivery futures cannot position cannot be manually closed.
- Newly Added Delivery Coin Pairs
After the settlement of delivery, the new next quarter delivery futures will be generated . For example, the current delivery coin pairs are BTCUSD1230 and BTCUSD0331, and after the delivery of BTCUSD1230 futures on December 30, 2022, the system will generate new BTCUSD0630 futures with a delivery time of June 30, 2023. The K-line of BTCUSD0630 will continue on the K-line of the already delivered BTCUSD1230 futures.
3. Risk Control of the Delivery Futures
The calculation of liquidation price and position reduction price of the delivery contract are based on a reasonable markup price. The calculation of the specific liquidation price is the same as the calculation of the Coin-M perpetual futures, and the specific calculation refers to the calculation of the risk control price of perpetual futures.
4. The Role of Delivery Futures
We support many types of margin for Coin-M delivery futures, including BTC, ETH, XRP and USDC. If you use BTC as margin and trade BTC spot at the same time, you can arbitrage spot and futures. The delivery futures take the spot as the subject matter, and the delivery is made at the average price of the corresponding index prices on the delivery date, which is the reason why arbitrage is possible.
For example, when the price of delivery futures increases high enough over the spot price, you can arbitrage by selling delivery futures and buying spot. Also when the price of the delivery futures falls low enough below the spot price, you can arbitrage by buying delivery futures and selling spot.
In addition to perpetual futures, delivery futures as an investment vehicle can increase the diversity of users' investments.