TradFi Perpetuals & Corporate Action FAQ (UAE)

What are TradFi Perps?

TradFi Perps are perpetual contracts with stocks, ETFs or commodities as the underlying asset. They are only available on OKX as a Derivatives product, and are offered to eligible users registered on the UAE platform who have:

• Passed the required suitability assessment, and

• Enabled the relevant trading permissions on their account.

TradFi Perps are not the same as holding stocks or ETFs. You do not own the underlying shares, and you have no shareholder rights such as voting rights or direct ownership. However, the price of your contract moves directly in line with the underlying stock or ETF price — if the stock goes up, your contract value goes up, and if the stock goes down, your contract value goes down.

Unlike traditional stock markets, TradFi Perps trade 24/7, meaning you can open and close positions at any time — including outside of regular stock market trading hours.

What is a corporate action?

A corporate action is an event that changes a company's share structure. The most common types are:

• Cash Dividend — the company pays shareholders a cash amount per share.

• Stock Dividend (Bonus Shares) — the company issues additional shares to existing shareholders instead of cash.

• Stock Split — the company divides each existing share into multiple shares, reducing the price proportionally.

• Reverse Stock Split (Share Consolidation) — the company merges multiple shares into fewer shares, increasing the price proportionally.

Note: Commodities do not undergo corporate actions

Do corporate actions affect my TradFi Perpetual position?

Yes. If your TradFi Perpetual tracks the price of an underlying stock or ETF, corporate actions may impact your position. Any applicable corporate actions are automatically reflected in the contract, and no action is required from you.

Cash dividends FAQ

Do all TradFi Perpetuals that track underlying stocks pay dividends?

No. Not all stocks or ETFs pay dividends.

For certain contracts, and at OKX’s discretion, dividend corporate actions may be applied. If applicable:

• Users will be notified within 5 days of the ex-dividend date, and

• 30 minutes prior to processing

If the dividend amount is relatively small compared to the index price, it is unlikely that dividend processing will occur.

What happens when a stock I hold a position in pays a cash dividend?

On the ex-dividend date, the contract price drops by the dividend amount (D). A direct cash transfer is also made to your account:

• If you hold a long position — you receive a cash credit of D × number of contracts held.

• If you hold a short position — you are debited a cash amount of D × number of contracts held.

Why do I pay a dividend if I hold a short position?

Holding a short position means you are synthetically short the stock. Short sellers are responsible for paying dividends to the lender of the shares.

Typically, the stock price drops by approximately the dividend amount on the ex-dividend date. In normal circumstances, this price drop offsets the dividend payment through a gain in your short position.

Could a dividend debit cause my position to be liquidated?

In rare cases, this may apply to isolated margin positions.

If your position is close to the liquidation threshold and a dividend adjustment results in a debit, the reduction in available margin could trigger liquidation.

We will notify you in advance of any upcoming corporate action adjustments, giving you the opportunity to add margin if needed before the adjustment is applied.

Is the cash dividend paid through the funding fee?

No. Cash dividends are a separate one-time credit or debit to your account. They are not processed through the funding fee.

Stock dividends and stock splits FAQ

For stock dividends, stock splits, and reverse stock splits, your position in the affected contract will be temporarily closed and reopened by the system during the suspension window.

It'll be reopened with the adjusted price and quantity in line with the corporate action, while preserving the total value of your position.

What happens to my position in a stock split or stock dividend?

Both events adjust your contract proportionally:

• Reducing the contract price: divided by the adjustment ratio.

• Increasing your position quantity: multiplied by the adjustment ratio.

Example: in a 2-for-1 split, your price halves and your contracts double. Total value stays the same.

What happens in a reverse stock split?

The opposite of a forward split:

• Increasing the contract price: multiplied by the consolidation ratio.

• Reducing your position quantity: divided by the consolidation ratio.

Example: in a 1-for-10 consolidation, your price increases tenfold and your contracts decrease to one-tenth. Total value stays the same.

Will I receive any cash for fractional contracts that cannot be allocated after rounding?

Yes. If rounding leaves a fractional contract, the residual value is credited to your account in USDT. You will not lose value.

Processing pause (suspension window) FAQ

Why is trading paused on my contract?

Trading is briefly suspended, so all price, quantity, and balance adjustments can be made at the same moment. This prevents mispriced trades during the adjustment.

When does the pause happen and how long does it last?

For US equity perpetuals, the pause occurs at 8:00 PM ET on the ex-dividend date (1:00 PM ET on US Half Day holidays).

The pause typically lasts a few minutes. You will be notified when trading resumes.

What exactly can and can't I do during the pause?

The following actions are restricted during the pause:

How will I know the pause has started?

• A “Paused” status label will appear on all affected open orders and positions in the Activity tab.

• You'll receive a push notification before the suspension window begins.

• The Cancel and Modify buttons will be temporarily hidden for affected orders during the pause in the Activity tab.

What happens to my open orders during the pause?

Open orders aren't cancelled. They're automatically adjusted and remain active when trading resumes.

• Cash Dividend — Order price reduced by the dividend amount (D). Quantity unchanged.

• Stock Dividend — Order price divided by (1 + r). Order quantity multiplied by (1 + r).

• Stock Split — Order price multiplied by q/p. Order quantity multiplied by p/q.

• Reverse Stock Split — Order price multiplied by q/p. Order quantity multiplied by p/q.

What happens to my Take Profit / Stop Loss (TP/SL) orders?

Untriggered TP/SL orders are adjusted automatically — both the trigger price and limit price are updated. No action needed from you.

Are there any order types that will be cancelled rather than adjusted?

Yes. The following order types are cancelled at the start of the suspension window and must be re-entered manually after trading resumes:

• Trailing Stop

• Trigger

• Chase orders

What happens to bots during corporate action processing?

All bots associated with the affected perpetual contract will be stopped if a corporate action occurs.

If you wish to continue using the bot, you will need to create a new one after the processing is complete.

Notifications & Transparency FAQ

How will I be notified about upcoming corporate actions?

We will notify you through the following channels:

• At least 5 days before the ex-date: push notification and email to all users holding positions in the affected contract.

• 30 minutes before the ex-date: a further push notification and email reminder.

Where can I see a record of the corporate action adjustment applied to my account?

A ledger entry is created in the Activity page > Transactions section > Trade for every corporate action.