What's Futures Pyramiding Auto-Settlement

About Futures Pyramiding

To improve the utilization rate of your futures funds, the Pyramiding Auto-settlement on CoinEx will settle your unrealized PNL as the realized PNL to your position margin via auto-settlement. In this case, when there is excessive margin in your position margin, you can either transfer manually (under isolated mode) or transfer via auto-settlement (under cross-margin mode) to the available balance. The settlement is performed every 8 hours.

 

1. Margin adjustment under isolated margin mode.

Your margin will not be added or reduced systematically unless you adjust it manually.

(1) Add manually: You can increase the margin according to your own needs, and the maximum margin that can be increased is the available balance in your Futures account.

(2) Reduce manually: The margin that is not used by the position and the realized PNL that has been settled will be reduced accordingly by adjusting the margin.

The maximum amount that can be reduced is as follows.

Max. margin to reduce = Position margin - Initial margin - Max (0, Unrealized PNL)

 

2. Margin adjustment under cross margin mode

(1) Add automatically: Under the cross margin mode, all the available margin in the account can be used as position margin. When the initial margin falls below the maintenance margin, the margin will be automatically added to the position. When the available balance is insufficient, your position will be liquidated.

(2) Reduce automatically: when the position margin > the initial margin, the margin can be automatically reduced to the available balance from the position margin.

 

3. Notes

(1) The settlement is conducted daily at 0:00, 8:00, 16:00 (UTC). For cross-margin positions, the margin will be automatically added or reduced at settlement time.

(2) You can also manually adjust the margin in the cross margin mode, and the operations are the same as under the isolated margin mode.

 

About Futures Settlement

1. Settlement Price

The settlement price is the price at which both unrealized PNL and realized PNL are calculated. In situations such as position opening, adding, and settlement, the settlement price will be adjusted accordingly.

 

2. Example

Assuming that your linear contract position is initially 0, and you are buying long in the ETHUSDT contract with an opening amount of 1 ETH and opening price of 300 USDT. At this time, the settlement price is 300 USDT. If your position is added by 1 ETH using 100 USDT within 1 settlement period, your average opening price will be updated to 200 USDT, and your settlement price will also be updated to 200 USDT. By the settlement time at 8:00, the settlement price will be the current mark price, which is 250 USDT.

Name

Opening Add Position Settlement
Avg. Opening Price 300 200 200
Settlement Price 300 200 250

 

3. Settlement Time

All Futures markets are settled every 8 hours, at 0:00, 8:00, and 16:00 (UTC) daily.

 

4. Calculations affected by the New Settlement

(1) Account Balance

The assets that the trader actually owns in the Futures account. During settlement, the realized PNL generated by the futures transactions will be added or reduced from the account balance.

Account Balance

= Account Equity - Position Margin

= Transfer-In Amount - Transfer-Out Amount + Realized PNL - Initial Margin - Added Margin + Reduced Margin

 

(2) Position Margin

Position margin refers to the margin used by your current position.

Position Margin = Initial Margin + Added Margin - Reduced Margin + Unrealized PNL + Settlement PNL

Under isolated margin mode, your settlement PNL will still be in the position margin during settlement, while the excessive margin can be manually transferred to the available balance. On the other hand, under cross margin mode, when the unrealized PNL is greater than the initial margin during settlement, it will be automatically transferred to the available balance. However, when it is less than the initial margin, the settlement PNL will remain in the current position margin.

Note: The settlement PNL in the position margin refers to the funds that convert the unrealized PNL into the settlement PNL during settlement, and it will be recalculated when the unrealized PNL is reset to zero.

 

(3) Unrealized PNL

The unrealized PNL refers to the profit and loss of the position held from the last settlement (0:00, 8:00, 16:00, UTC) to the current moment, also known as Paper profit or Paper loss, which is estimated at the Mark price.

Linear contract PNL calculation is updated as follows:

Unrealized PNL (Long) = Position Amount * (Mark Price - Settlement Price)

Unrealized PNL (Short) = Position Amount * (Settlement Price - Mark Price)

 

Inverse contract PNL calculation is updated as follows:

Unrealized PNL (Long) = Contract Amount * Value per cont * (1 / Settlement Price - 1 / Mark Price)

Unrealized PNL (Short) = Contract Amount * Value per cont * (1 / Mark Price - 1 / Settlement Price)

Note: Unrealized PNL is the profit on open positions. At the time of settlement, 0:00, 8:00, 16:00 UTC daily, the unrealized PNL will be converted and settled as the realized PNL (settlement PNL), while the unrealized PNL will be reset for calculation for the next period.

 

(4) Realized PNL

The realized PNL refers to the profit and loss since the opening of the position, including trading fees, funding fees, settlement PNL and trading PNL of reducing or closing positions.

Linear contract settled PNL calculation is updated as follows:

Settlement PNL (Long) = Position Amount * (Current Settlement Price - Last Settlement Price)

Settlement PNL (Short) = Position Amount * (Last Settlement Price - Current Settlement Price)

 

Inverse contract PNL calculation is updated as follows:

Settlement PNL(Long) = Position Amount * Value per cont * (1/Last Settlement Price - 1/Current Settlement Price)

Settlement PNL (Short) = Position Amount * Value per cont * (1/Current Settlement Price - 1/Last Settlement Price)

 

Linear contract trading PNL calculation is updated as follows:

Trading PNL (Long) = Position Amount * (Closing Price - Settlement Price)

Trading PNL (Short) = Position Amount * (Settlement Price - Closing Price)

 

Inverse contract trading PNL calculation is updated as follows:

Trading PNL (Long) = Position Amount * Value per cont * (1/Settlement Price - 1/Closing Price)

Trading PNL (Short) = Position Amount * Value per cont * (1/Closing Price - 1/Settlement Price)

 

Notes:

Under the isolated margin mode and during settlement, the settlement PNL will still be kept in the current position margin. You can manually transfer your profits to the available balance, while the realized PNL after closing the position will be directly transferred to the available balance.

Under the cross-margin mode and during settlement, the settlement PNL will be kept in the current position margin, and if there is any excess margin (profit), it will be automatically transferred to the available balance. Meanwhile, the realized PNL generated after closing the position will be directly transferred to the available balance.

 

(5) Liquidation Price

If the Mark price (Long) is lower than the current liquidation price, or the Mark price (Short) is higher than the current liquidation price, your current position will be liquidated.

Linear contract calculation:  Please refer to How To Calculate Liquidation Price For Linear Contract.

Inverse contract calculation: Please refer to How To Calculate Liquidation Price For Inverse Contract.

Note: At the time of settlement, only the unrealized PNL will be settled as the realized PNL, and the settlement funds will still be in the position margin. Under no circumstances will forced liquidation be triggered due to the settlement.

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