Introduction to Pre-market Futures

1. Overview

Pre-market Futures, OKX’s pre-market trading platform, allows users to trade expiry futures on crypto that have not yet been officially launched or listed. These pre-market expiry futures are USDT-settled. The goal of OKX’s pre-market trading feature is to provide users with a secure and reliable platform for participating in the price discovery of new crypto.

2. Product mechanisms

Pre-market Futures mechanisms differ from standard futures trading in several ways. Please make sure you understand these mechanisms and risks before participating.

2.1 Index price

Prior to a spot listing, the index price for pre-market futures will be based on the last price of the corresponding futures on OKX. Once a spot listing happens, OKX will reconstruct the index using the spot prices of various mainstream exchanges. This index price is then used to determine the delivery price of the futures.

2.2 Delivery mechanism

Pre-market futures are USDT-settled futures that will be settled on the expiration date based on a specific delivery price.

2.2.1 Delivery date

1. If the new crypto is issued as planned, the pre-market future contracts will be delivered 3 hours after the crypto is listed on the spot market, and the delivery price will be calculated 2 - 3 hours after the listing. If the listing time changes, then the contract delivery time changes accordingly. Stay informed of any changes via our announcements.

2. If the crypto project team cancels the crypto issuance, fails to announce a crypto issuance plan within six months, or due to other risk control issues, OKX may decide not to list the crypto on the OKX spot market. In such cases, OKX may delist the futures in advance. The specific delivery date will be announced separately and displayed on the trading page once determined.

2.2.2 Delivery price

1. If the new crypto is issued as planned and will be listed on the OKX spot market:

   1. Index price: OKX will include prices from more than 3 mainstream exchanges as part of the index components.

   2. Delivery price: OKX will deliver futures contract positions at the arithmetic average price of the corresponding OKX index price timed at 1 hour prior to the delivery. If the traded price displays abnormalities in the hour preceding the delivery, OKX may adjust the final delivery price to a reasonable level for delivery.

2. If the crypto project team cancels the crypto issuance or no issuance plan is announced within six months, or if OKX decides not to list the crypto on the spot market for other risk control reasons:

   1. Actual delivery price = Tick size

   2. Estimated delivery price = Rolling average index price over the last hour before delivery, calculated every 200 milliseconds (Index price = Last price every 200 milliseconds).

   3. OKX reserves the right to include prices from other exchanges as part of the index components.

2.2.3 Position limits

To reduce delivery risk, within the hour before pre-market futures delivery, users can no longer increase their positions and can only make the following closing orders or reverse orders to reduce their positions.

1. Hedge mode: place a closing order.

2. One-way mode: place a reduce-only order, or place a reverse order/pending order with quantity no greater than current position. If the quantity of accumulated reverse orders (including pending orders) is greater than the current position, then no new reduce-only orders can be placed. Please check pending orders before placing a new one.

2.3 Price limits

After pre-market contract generation:
Highest price of buy order = Average mid price of the past hour × (1 + 15%)
Lowest price of sell order = Average mid price of the past hour × (1 – 15%)

Within 60 minutes before delivery:
Highest price of buy order = Index Price × (1 + 5%)
Lowest price of sell order = Index Price × (1 – 5%)

Mid price = (Best bid price + Best ask price) / 2. Price limits are calculated every minute.For more details: https://www.okx.com/trade-market/info/futures

2.4 Mark price

Mark price cap = Highest price of buy order in limit price.

Mark price floor = Lowest price of sell order in limit price.

Mark price

= Moving average of mid price,

= Moving average of (Best ask of contract + Best bid of contract) / 2.

2.5 Position limits

For pre-market futures, the position size of the user’s isolated margin positions will be subject to tiered limits and user-specific position limits.

2.5.1 Tiered position limits

The maximum position size is determined by the user’s selected leverage tier. The maintenance margin is calculated based on the position size and the corresponding tier’s maintenance margin requirement (MMR).

Note that the maximum position size in the tier table is in USD and needs to be converted to contract size:

Contract number = USD value / Crypto price / Contract size / Contract multiplier (refer to the listing announcement for specific values).

2.5.2 User-specific position limits

The user’s position size must comply with both tiered position limits and user-specific position limits.

2.6 Liquidation mechanism

The liquidation mechanism for pre-market futures is the same as for standard futures. For more details, refer to:

• Tiered maintenance margin ratio rules: https://www.okx.com/help/v-tiered-maintenance-margin-ratio-rules

• System Liquidation Mechanism: https://www.okx.com/help/vi-system-liquidation-mechanism

• Introduction to Auto-deleveraging (ADL): https://www.okx.com/help/iv-introduction-to-auto-deleveraging-adl

  • Pre-market trading is subject to applicable ADL conditions

2.7 Trading and settlement fees

Trading fees are the same as standard expiry futures. For more details, refer to: https://www.okx.com/fees

The settlement fee is 1%, subject to adjustment as announced.

2.8 Contract elements

2.9 Price determination

Prices in the pre-market futures are determined by market behavior and may not accurately reflect the actual listing price of the new crypto.

Risk warning: The project has not yet finalized the crypto issuance plan, and the total supply is uncertain. Changes in issuance volume may cause market price fluctuations. Users should monitor market information, exercise risk control, and trade cautiously.

2.10 Risk disclaimers

Whilst we strive to provide a better trading experience, trading pre-market futures is highly risky as the pre-market is more prone to lower liquidity, higher price volatility, and users are subject to increased liquidation risk. Not all tokens being traded in pre-market futures will ultimately be listed on OKX and OKX retains sole discretion to adjust the listing, extend or terminate the futures contract and the delivery date for the futures contract.

It should be noted that pre-market futures is with a set expiry, with expiry linked to the listing of the relevant underlying token and settled at expiry in USDT only, therefore you are not trading in the underlying token nor should you have any expectation to receive the underlying token at expiry of the futures contract. In addition, there are no clearly identifiable price sources for the underlying token given trading is pre-listing of the relevant token and, as a result, price of the futures contracts may differ to price of the underlying token at listing and once listed.

OKX may suspend such trading pre-market futures at any time and at its sole discretion. For more details, please refer to the OKX Terms of Service and Risk & Compliance Disclosure.