Cryptocurrency derivatives have become a cornerstone of modern digital asset trading, offering traders advanced tools to hedge risk, speculate on price movements, and optimize portfolio performance. Among these instruments, delivery contracts stand out as a powerful yet accessible option for both novice and experienced traders. This guide provides a comprehensive overview of delivery contracts offered by OKX, focusing on two primary types: coin-margined and USDT-margined delivery contracts, while highlighting key features, mechanics, and best practices.
What Are Coin-Margined Delivery Contracts?
Coin-margined delivery contracts are futures instruments settled in cryptocurrency—typically BTC or ETH. These contracts allow traders to take leveraged positions based on the expectation of price movements in major cryptocurrencies like Bitcoin or Ethereum against fiat-denominated indices such as USD.
Key Features of BTCUSD Contract (Example)
- Underlying Index: BTC/USD
- Settlement Currency: BTC
- Face Value: 100 USD per contract
- Contract Multiplier: 1
- Tick Size: 0.1
- Leverage Range: 0.01x – 20x
- Trading Hours: 7×24
- Contract Types: Weekly, monthly, quarterly
- Delivery Time: Friday at 4:00 PM HKT (UTC+8) during the expiry week
These contracts are ideal for long-term holders (HODLers) who wish to hedge their spot holdings without converting into stablecoins or fiat. For example, a Bitcoin holder concerned about short-term downside risk can open a short position in BTCUSD contracts to offset potential losses in their portfolio.
Understanding USDT-Margined Delivery Contracts
USDT-margined delivery contracts use Tether (USDT) as the settlement currency, making profit and loss calculations more intuitive for traders accustomed to stablecoin-denominated returns. Each contract represents a fixed amount of the underlying cryptocurrency—for instance, one BTCUSDT contract equals 0.01 BTC.
Example: BTCUSDT Delivery Contract
- Underlying Index: BTC/USDT
- Settlement Currency: USDT
- Face Value: 0.01 BTC
- Contract Multiplier: 1
- Tick Size: 0.1
- Leverage Range: 0.01x – 20x
- Trading Hours: 7×24
- Contract Types: Weekly, monthly, quarterly
- Delivery Time: Friday at 4:00 PM (UTC+8)
Notably:
- BTCUSDT supports weekly, monthly, and quarterly maturities.
- ETHUSDT only offers weekly and quarterly contracts.
This structure simplifies trading for users who prefer not to hold large amounts of volatile assets like BTC or ETH in their margin accounts. Profits and losses are directly reflected in USDT, enabling clearer performance tracking.
Delivery Schedule & Expiry Rules
OKX organizes delivery contracts with standardized expiry dates across different pairs:
| Contract Type | Available Expiry Dates | Expiry Time |
|---|---|---|
| BTCUSD | 7 expiries | Weekly: Fridays at 4:00 PM UTC+8 Monthly: Last Friday of the month Quarterly: Last Friday of Mar/Jun/Sep/Dec |
| ETHUSD, BTCUSDT | 6 expiries | Same as above |
| ETHUSDT | 4 expiries | Weekly & Quarterly only |
New contracts are listed every Friday at 4:00 PM UTC+8, ensuring continuous market depth and liquidity across multiple tenors.
Core Product Features Explained
Dual Settlement Options: Flexibility Meets Strategy
- Coin-Margined Contracts: Best suited for hedging spot exposure. For example, an ETH holder can short ETHUSD contracts to protect against price drops.
- USDT-Margined Contracts: Provide transparent P&L in stablecoin terms, ideal for speculative traders and those avoiding direct crypto exposure in margins.
👉 See how switching between margin types can align with your market outlook and risk tolerance.
Index Pricing Mechanism
To ensure fairness and accuracy, OKX uses a robust index pricing system:
- BTC/USD Index for coin-margined contracts
- BTC/USDT Index for USDT-margined contracts
The index aggregates data from three or more major exchanges, applying weighted averages and anomaly filters to prevent manipulation or distortions from outlier prices.
Mark Price & Liquidation Protection
During periods of high volatility, OKX employs a marking price mechanism based on the index plus a fair basis component. This prevents unfair liquidations caused by temporary spikes or wash trades on the order book.
Tiered Maintenance Margin System
As position size increases, so does the required maintenance margin rate:
- Larger positions = higher margin requirement
- Higher risk exposure = lower maximum allowable leverage
This tiered system enhances platform stability and protects traders from excessive leverage during volatile conditions.
Price Limit Controls
To maintain orderly markets, OKX dynamically adjusts allowable order prices based on:
- Current spot index value
- Previous minute’s contract price
This prevents extreme orders from disrupting market equilibrium while still allowing full trading functionality.
Trading Modes: Choose Your Style
OKX supports two distinct position management modes:
1. Buy/Sell Mode (One-Way Mode)
- Only one position direction allowed per contract
- Selling against a long position reduces the overall long size
- Example: Holding 10 long BTCUSDT contracts; selling 5 → results in 5 long contracts remaining
2. Open/Close Mode (Hedge Mode)
- Allows simultaneous long and short positions on the same contract
- Offers greater flexibility for hedging strategies
- Example: Holding 10 long + opening 5 short → maintains both positions independently
👉 Unlock advanced trading strategies by mastering hedge mode on OKX.
Daily Settlement Process
At 4:00 PM UTC+8 daily, OKX performs a settlement for all active positions under the full margin mode:
- Settlement price = average mark price over the prior hour
- Realized P&L is credited to available balance
- Entry price is updated to the latest settlement price
- No fees are charged
- Positions remain open unless manually closed or liquidated
This process ensures accurate profit recognition without interrupting ongoing trades.
Frequently Asked Questions (FAQ)
Q: What happens when a delivery contract expires?
A: Upon expiry, all open positions are automatically settled at the final reference price—the average index value over the last hour before delivery.
Q: Can I hold a position past the delivery date?
A: No. All positions are forcibly closed at expiration. Traders must roll over to a new contract series if they wish to maintain exposure.
Q: How is leverage applied in delivery contracts?
A: Leverage amplifies both gains and losses. You can adjust leverage settings within the allowed range (up to 20x), but higher leverage increases liquidation risk.
Q: Is there a cost to settle or trade delivery contracts?
A: There are no additional fees for daily settlement or contract expiration. Standard taker/maker fees apply to trades.
Q: Which is better—coin-margined or USDT-margined?
A: It depends on your goals. Use coin-margined for hedging; choose USDT-margined for stablecoin-based accounting and simplicity.
Q: How does OKX prevent price manipulation?
A: Through multi-exchange index pricing, real-time anomaly detection, and mark price-based liquidation controls.
Final Thoughts
Delivery contracts on OKX offer a sophisticated blend of flexibility, transparency, and risk management tools. Whether you're hedging spot holdings with BTC-margined futures or speculating with precise USDT-denominated payouts, understanding the mechanics—from expiry rules to margin systems—is crucial for success.
By leveraging features like dual trading modes, index-based pricing, and daily settlements, traders can build resilient strategies aligned with market cycles and personal risk profiles.
Keywords: delivery contract, coin-margined futures, USDT-margined futures, cryptocurrency derivatives, futures trading, leverage trading, OKX futures