Cash Dividend Adjustments for TradFi US Stock Futures

Hotcoin

Hotcoin supports cash dividend adjustments for TradFi US stock futures. When an underlying stock pays a cash dividend, adjustments are made based on the net position at settlement: net long positions receive dividends, net short positions pay dividends, and zero net positions are excluded from settlement.

1. How Are Dividend Amounts Calculated?

Dividend Amount = Cash Dividend per Share × Net Position Size at Settlement

Net Position Size = Long Position Size − Short Position Size for the same contract.

Dividends are settled in USDX, with USD-denominated dividend amounts converted at a rate of 1 USD = 1 USDX.

For example, if an underlying stock pays a cash dividend of $0.50 per share:

A long position of 100 and a short position of 40 in the same contract at settlement result in a net long position of 60, with 30 USDT received in dividends.
A net short position of 60 results in a dividend payment of 30 USDT.

2. How Are Dividends Settled?

All times are in Eastern Time (ET). T represents the ex-dividend date of the underlying stock, and T−1 is the preceding calendar day.

Time	Settlement Process
T−1, 19:30	The relevant contract enters reduce-only mode. Users can reduce or close existing positions but cannot open new positions or increase existing ones.
T−1, 20:00	Dividend adjustments are calculated and settled based on the actual net position at this time. If regular funding fee settlement also occurs, funding fees are settled first, followed by dividend adjustments.
Dividend Settlement	Settlement is expected to be completed within 5 minutes, after which reduce-only mode is lifted and normal trading resumes.

Note: Reducing or closing positions between 19:30 and 20:00 will affect the dividend amount. Positions fully closed before 20:00 ET or with zero net exposure at settlement will neither receive nor pay dividends.

Dividend adjustments are automatically credited to or deducted from users' accounts. No manual claim is required. The cash dividend amount per share and the settlement countdown can be viewed on the relevant contract's trading page.

3. Where Can Dividend Records Be Viewed?

After settlement, dividend records can be viewed under:

Futures Order → Corporate Actions: View cash dividend details.

Account History → Cash Dividend: View the actual fund movements.

Risk Reminder: Dividend payments on short positions may reduce account balances or position margins. Users should maintain sufficient margin to avoid liquidation. The underlying stock's price typically adjusts on the ex-dividend date, so receiving dividends does not necessarily result in an equivalent net gain.