The delivery contract is a digital asset derivative launched by Hotcoin. It currently supports contract transactions settled in USDT and currency standards.



A delivery contract refers to a contract to buy or sell an underlying asset at a predetermined price at the delivery time (a specified time in the future). It is a document of the rights of both parties to the transaction on the delivery date. Delivery contracts are settled in cash at delivery time. A delivery contract is a certificate of rights, corresponding to the obligation to deliver at the delivery price at the delivery time. If the delivery settlement price is greater than the user's opening price, the long (buyer) makes a profit; otherwise, the short (seller) makes a profit.

Delivery Contract Code Meaning

Take the week of BTC_USDT0730 as an example:



BTC refers to the base currency of the delivery contract, USDT refers to the pricing currency of the delivery contract, and 0730 refers to the expiration date of July 30, which is the delivery date. The current week refers to the contract for delivery this week, with a period of one week and expiration this week.



Delivery refers to the process of settling unfinished or ongoing contracts after the agreed delivery date. Hotcoin uses the weighted average index price for a period of time before settlement as the final settlement price to avoid the risk of instant market manipulation. Different contracts may have different lengths, usually half an hour, please see the contract information for details.



Hotcoin delivery contracts will only be settled when the contract expires and will not be settled daily. During settlement, normal trading of other contracts will not be suspended. The weekly contract settlement time is 08:00 UTC every Friday. Quarterly contract settlement is at 08:00 UTC on the last Friday of the quarter. Hotcoin uses the mark price as the basis for closing positions, and adopts an automatic position reduction and insurance fund mechanism similar to a perpetual contract, so there will be no loss sharing.



The two parties reach an agreement on a certain trading pair and agree to settle the price one week later using the weighted average index price of the previous period as the final settlement price. When the delivery date is reached, no matter whether it is in profit or loss at that time, as long as the specified time is reached, the position will be settled and closed, and it cannot be held for a long time. Of course, you can choose to close the position before the delivery date before reaching the specified time.





The calculation of the risk control price (liquidation price, liquidation price) of the delivery contract is based on the reasonable mark price. The specific calculation of liquidation is the same as the calculation of the currency perpetual contract. For specific calculations, please refer to the calculation of the risk control price of the perpetual contract.

The Role of Delivery Contracts

Arbitrage Tools



For currency-based delivery contracts, we provide a variety of margins, including BTC, ETH, USDC, etc. If you use BTC as margin and trade BTC spot at the same time, you can perform futures arbitrage. The delivery contract uses spot goods as the subject matter and is delivered at the average price of the corresponding index price on the delivery day. This is why arbitrage is possible.



For example, when the delivery contract price exceeds a certain threshold of the spot price, you can sell the delivery contract and buy the spot for arbitrage. At the same time, when the delivery contract price is lower than a certain threshold of the spot price, you can arbitrage by buying the delivery contract and selling the spot price.



Investment Tools


Like perpetual contracts, delivery contracts, as a contract tool, can enrich users’ investment varieties.