Pre-market Product Rule
1. Overview
Pre-market futures on OKX allow users to trade crypto assets before those assets are officially launched or listed on spot markets. This product enables traders to participate in price discovery for new tokens by going long or short in anticipation of a token’s launch, while providing a secure and reliable platform for early trading opportunities. (For Pre-IPO Futures please refer to Pre-IPO Futures).
2. Product mechanism
Pre-market futures differ from standard futures in several important ways. Please ensure you fully understand the unique mechanisms and risks before trading.
2.1 Pre-market X-Perp pricing
Pre-market futures have a dynamic pricing mechanism. Once the underlying is listed for spot trading, OKX will convert the pre-market into standard futures contract, and apply the index rule using the spot price(s) of exchange(s) according to the methodology set out here. To promote orderly price discovery, market orders are unavailable for the first five minutes after a pre-market future is first listed. During this interval, traders are encouraged to trade limit orders to participate in early price formation.
2.2 Conversion mechanism
The pre-market futures will be converted into a standard futures contract once certain conditions are met. In the case of x-Perps, conversion means that the contract will start using the standard index price and funding rate mechanism, and becoming a regular X-Perps contract on OKX. The contract will continue trading with the same contract identifier even after a conversion has occurred.
If the underlying is officially listed: The pre-market futures will continue trading, and once the underlying is listed on eligible spot exchanges and the market satisfies our criteria for index pricing, the pre-market futures will be converted into standard futures contracts. OKX will trigger such conversion when the market and the underlying pricing is considered stable. OKX will announce the conversion when appropriate and, if possible, in advance of such conversion. During the conversion period after the token’s listing, the pre-market futures remains tradeable, and its pricing will gradually align with the standard futures pricing.
All open positions and orders remain unchanged through the conversion.
If the token project is canceled or significantly delayed (for example, no listing plan announced within six months from the initial contract listing), OKX may decide to delist the contract. In such cases, OKX will settle all open positions at a final settlement price determined in good faith, and in a commercially reasonable manner, by the exchange. This termination settlement price may be set to a nominal minimal value (for example, the tick size of the contract). OKX will give notice of any delisting via an announcement within a reasonable timeframe prior to the delisting event. Notice and information of these events will be provided by OKX and published on the announcement page of the user interface.
2.3 Price limit
OKX will apply the same price limit formulas as regular X-Perps. For details, please refer to Price limit rules.
Please note, before the pre-market X-Perps is converted into a standard X-Perps, the price limit, once available, will be calculated every 5 seconds. After conversion, the price limits will be calculated per 200 milliseconds.
The price limit parameters may be adjusted based on market conditions, without prior notice.
2.4 Mark price
After pre-market contracts are generated:Mark Price= CLAMP(Moving average of (Best ask of contract + Best bid of contract) / 2, Highest price limit, Lowest price limit)
After conversion into normal X-Perps: please refer to Mark price and Last price.
2.5 Funding fee
Funding fee for pre-market futures is handled the same way standard OKX futures contracts handle it, but with a special funding rate used in the calculation. In particular, for pre-market futures, the funding rate is calculated using the same formula as standard futures. For pre-market futures to maintain a stable funding rate, the premium index in funding rate calculation is set to 0. The resulting funding rate is a flat rate. Once the pre-market futures is converted to a standard futures, the funding fee calculation including premium index will use the regular formula found here.
2.6 Liquidation mechanism
The liquidation mechanism for pre-market futures is the same as for standard futures contracts. Pre-market trading is subject to applicable auto-deleveraging (ADL) conditions. For more details, refer to:
2.7 Trading fee
Trading fees are the same as standard futures. For more details, refer to: https://my.okx.com/fees
2.8 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 token. Risk warning: The token project may not have finalized their insurance plan, and the total token supply may change and lead to market price fluctuations. Users should monitor market information, exercise adequate risk control measures, and trade responsibly.
2.9 Risks
Trading pre-market futures is highly risky as the pre-market is more prone to low liquidity, high price volatility, and users are subject to increased liquidation risk. The price of pre-market futures has enhanced sensitivity to market speculation and information, and you are purchasing this product at your own risk. Not all tokens being traded in pre-market futures will ultimately be listed on OKX for spot trading. Pre-market futures differ from standard futures through a unique dynamic pricing mechanism. Distinct parameters are used during the pre-market and post-conversion phases to help ensure price stability and a smoother trading experience. Price of the pre-market futures may differ to price of the underlying token at spot listing and after listing. You should closely monitor the latest status of the underlying tokens on OKX to make appropriate adjustments to your orders. OKX retains sole discretion to adjust the listing of the underlying token, or change the pricing and settlement mechanism, extend or terminate the per-market futures. To minimize disruptive trading experiences, we have engaged in various protective mechanisms, including adjusting auto-deleveraging mechanisms. You are solely responsible for monitoring your orders and positions to prevent liquidation.
OKX may suspend pre-market X-Perps trading at any time and at its sole discretion. For more details, please refer to the OKX Terms of Service and Risk & Compliance Disclosure.