What is Delisting?
Delisting is the process of removing assets listed on the exchange so that they can no longer be traded.
Delisting can occur for a variety of reasons, such as by request of the asset management team, the asset no longer fulfilling the exchange listing requirements or possible regulatory issues.
What happens when an asset is delisted?
Users will be given notice to close out positions, convert the affected asset for another or withdraw their assets. Further reminders will be sent before trading functionality is suspended. At the end of the transaction support, the asset will be delisted and users will no longer be able to buy or sell the asset in the Flipster.
What happens if the user is holding a position at the end of transaction support?
Flipster will force the position to be settled. Positions are closed collectively based on the Mark Price at the end of transaction support. All unrealized P&L is calculated at the time of settlement and converted into realized P&L. It takes about 15 minutes to half an hour from the announced delisting time to be fully set.
If the settlement is forced by Flipster, an auto-settlement fee will occur. so it may be advantageous for the user to close the position before transaction support ends.
How is Mark Price calculated?
In the case of perpetual swap, the Mark Price is calculated as the 1-hour Time Weighted Average Price (TWAP) per second of index price from one hour before the end of transaction support. The detailed formula is as follows:
- Mark Price(t) = {1*Index Price(t-3600) + 2*Index Price(t-3599) +...+ 3600*Index Price(t-1)} / (1+2+...+3600)
How is auto settlement fee calculated?
Auto-settlement Fee = Qty * Mark Price * Taker Fee
- Mark Price: Based on 1-hour TWAP of index price at the time of delisting
- Taker Fee: Based on taker fee set for each user
Risk Warning:
Trading in cryptocurrency involves risk and potential losses. Before trading, please make your investment decisions cautiously by considering your investment objectives, experience, and risk tolerance. You are solely responsible for your investment decisions, and Flipster is not liable for any losses you may incur. Derivatives trading, in particular, is subject to high market risk and price volatility. Please obtain independent advice where appropriate. This information should not be construed as financial or investment advice.