Pre-Launch Futures are an innovative trading product offered by OKX, enabling traders to gain early exposure to cryptocurrencies before they are officially launched or listed on the spot market. These futures contracts allow users to speculate on the future value of upcoming digital assets, with all settlements conducted in USDT. Designed to support secure and transparent price discovery, Pre-Launch Futures provide a regulated environment for forward-looking market participation.
This guide explores how Pre-Launch Futures work, their unique mechanisms, risk considerations, and key trading parameters—all essential knowledge for traders seeking opportunities in emerging crypto projects.
How Pre-Launch Futures Work
Unlike traditional futures, Pre-Launch Futures operate under specialized rules tailored for assets not yet available in the open market. Understanding these mechanics is crucial for managing risk and optimizing trading strategies.
Pricing Mechanism
Before a token is listed on the spot market, the price of its corresponding Pre-Launch Future is derived from the last traded price of that future on OKX. Once the underlying asset is officially listed, OKX transitions to an index-based pricing model, using spot prices from one or more external exchanges according to a predefined methodology.
This index becomes the foundation for calculating the settlement price at contract expiration, ensuring fairness and alignment with real-world market conditions.
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Settlement Process
Pre-Launch Futures are USDT-settled contracts, meaning profits and losses are paid out in stablecoin regardless of whether the underlying crypto launches.
Settlement Date
- If the new cryptocurrency is successfully listed on OKX Spot, contracts will be settled 3 hours after listing.
- Should the project team cancel the token launch, fail to announce an issuance plan within six months, or if OKX decides not to list the asset due to risk concerns, OKX reserves the right to delist the futures early. In such cases, a separate announcement will specify the revised settlement date.
Settlement Price
There are two primary scenarios:
Successful Token Launch:
- The settlement price is based on the arithmetic average of the index price calculated during the hour before settlement.
- If abnormal trading activity occurs during this window, OKX may adjust the final settlement price to a reasonable level.
Failed or Cancelled Launch:
- Actual settlement price = tick size
- Estimated settlement price = moving average of prices taken every 200 milliseconds over the last hour
- Index price = last price recorded every 200 ms
OKX retains full discretion to modify the settlement mechanism as needed.
Position Limits Before Expiry
To reduce systemic risk during the critical final hour before delivery:
- Users cannot open new positions.
- Only closing orders or reducing-only orders are permitted.
In Hedging Mode, users can place close orders.
In One-Way Mode, only reduce-only orders, reversal orders, or limit orders (with quantity ≤ current position) are allowed. If cumulative reversal orders exceed the existing position, no additional reduce-only orders can be placed.
Price Bands and Trading Controls
Price limits help prevent extreme volatility and manipulation. These vary depending on timing and regulatory updates effective after September 24, 2024.
Before September 24, 2024:
- Post-contract creation: Buy cap = average mid-price × (1 + 15%), Sell floor = average mid-price × (1 – 15%)
- Final 60 minutes: Buy cap = index price × (1 + 5%), Sell floor = index price × (1 – 5%)
After September 24, 2024:
- Post-spot listing (pre-index transition): Buy cap = index × (1 + 15%), Sell floor = index × (1 – 15%)
- During index transition: Dynamic formulas incorporate premium averages over 2-minute intervals
- Final hour: Tightened bands using index × (±5%) with premium adjustments
Mid-price = (best ask + best bid) / 2 — recalculated every minute.
Mark Price Calculation
The mark price prevents unfair liquidations by reflecting fair market value.
- Before September 24, 2024: Based on moving average of mid-price
- After launch: Initially same as above
- Post-spot listing (pre-transition):
Mark Price = β × (Index + Moving Average of Basis) + (1 – β) × Moving Average of Mid-Price
(β is a time-weighted factor between 0 and 1) - Post-transition:
Mark Price = Index + Moving Average of (Mid-Price – Index)
Position Sizing and Leverage
Position sizes are governed by both tier-based limits and user-specific caps.
Tier-Based Position Limits
| Tier | Max Position (USD) | MMR | IMR | Max Leverage |
|---|---|---|---|---|
| 1 | $5,000 | 10% | 50% | 2x |
| 2 | $10,000 | 12% | 50% | 2x |
| ... | ... | ... | ... | ... |
| 12 | $100,000 | 22% | 100% | 1x |
MMR = Maintenance Margin Requirement; IMR = Initial Margin Requirement
To convert USD limits into contracts:
Number of Contracts = USD Value / Crypto Price / Contract Size / Multiplier
Check individual listing announcements for exact values.
User-Specific Limits
- USDT-M Futures DMM Users: Up to $100,000
- Non-DMM USDT-M Futures Users: Up to $10,000
Users must comply with both tier and account-level restrictions.
Liquidation Mechanism
The liquidation framework mirrors standard futures:
- Based on margin ratio thresholds
- Includes Auto-Deleveraging (ADL) systems
- Subject to dynamic adjustments during high-volatility periods
Traders should actively monitor positions to avoid forced exits.
Trading Fees and Settlement Costs
- Trading fees: Same as standard futures (maker/taker model applies)
- Settlement fee: 1%, subject to change via official notice
Contract Specifications
- Underlying: XXX/USDT Index
- Settlement Currency: USDT
- Notional Value: 1 XXX per contract
- Price Quotation: USDT per XXX
- Tick Size: 0.0001
- Leverage Range: 0.01x – 2x
- Trading Hours: 24/7
- Contract Type: Expiring Futures
- Delivery Date: To be announced
Risk Disclosures and Market Behavior
Pre-Launch Futures are speculative instruments influenced heavily by sentiment and unverified information. Prices may not accurately reflect the eventual spot listing price.
⚠️ Key Risks Include:
- No guarantee of official token listing
- Uncertain total supply and issuance plans
- High volatility and low liquidity
- Increased susceptibility to manipulation
- Potential for early delisting
OKX maintains full authority to:
- Adjust pricing or settlement methods
- Extend or terminate contracts
- Suspend trading at any time
Users must stay informed through official announcements and exercise caution when entering positions.
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Frequently Asked Questions (FAQ)
Q: What happens if the token is never listed?
A: If the project cancels or delays issuance beyond six months, OKX may delist the futures early. Settlement will follow adjusted terms based on tick size and recent trading data.
Q: Can I use leverage with Pre-Launch Futures?
A: Yes, up to 2x leverage is available depending on your position tier. Higher tiers have lower maximum leverage to manage risk.
Q: How is the settlement price determined after listing?
A: It’s based on the average of the index price—one or more verified spot prices from external exchanges—calculated during the final hour before expiry.
Q: Are there special rules in the last hour before settlement?
A: Yes. No new positions can be opened. Only closing or reducing orders are allowed to stabilize the market.
Q: Why does OKX use index pricing after listing?
A: To ensure fair and objective settlement aligned with actual market conditions across multiple platforms.
Q: Is there a guarantee that Pre-Launch Futures will result in spot listing?
A: No. Trading these futures does not ensure the token will be listed on OKX Spot. Each project undergoes independent evaluation.
Final Thoughts
Pre-Launch Futures represent a powerful tool for forward-thinking traders who want early access to promising blockchain projects. By combining structured risk controls, transparent pricing models, and USDT settlement, OKX offers a secure environment for participating in crypto’s next wave of innovation.
However, due to their speculative nature and inherent uncertainties, these instruments demand careful research, disciplined risk management, and continuous monitoring.
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