Overview
Rebase is a system-level proportional adjustment mechanism executed by the platform on relevant contracts when the underlying asset undergoes a corporate action or the contract's pricing basis changes. Its purpose is to realign the contract pricing system with the new underlying basis, while maintaining continuity in position value and account equity before and after the adjustment.
Rebase does not alter the trading characteristics of the contract itself, nor does it represent the official valuation, issue price, or post-listing price of the underlying company. The relevant contracts are intended solely for price movement trading and do not correspond to any stocks, securities, equity, or other ownership interests.
Corporate actions refer to events that may affect the number of shares, capital structure, or contract pricing basis of the underlying company, including but not limited to stock splits, reverse stock splits, consolidations, share count updates, etc. For Pre-IPO contracts, if the estimated share capital differs from the latest publicly disclosed share capital, a Rebase may also be triggered. The specific affected contracts, execution time, adjustment basis, and handling arrangements shall be subject to the platform's announcements.
Impact of Rebase on Users
Item | Description |
Trading Status | During Rebase execution, the relevant contracts are suspended from trading; order placement, cancellation, modification, and matching will be paused. Trading will resume after the adjustment is completed. |
Position Handling | Existing positions will be settled at the mark price before the adjustment, then restored according to the adjusted price system. |
PnL Handling | Existing unrealized PnL will be settled as realized PnL during the Rebase execution and credited to the account balance. |
Price and Size | The position size and mark price will be adjusted inversely in proportion according to the new methodology, keeping the notional position value and account equity essentially unchanged. |
Regular Limit Orders | Existing unfilled regular limit orders will be canceled, then converted and re-placed according to the new methodology. Orders that do not meet trading rules will not be restored. |
TP/SL and Strategy Orders | Take-profit/stop-loss orders, conditional orders, algorithmic orders, and certain strategy orders will be canceled during the Rebase period and will not be automatically restored. |
Liquidation and Risk Control | During the Rebase period, liquidations and ADL will be suspended or deferred according to system rules, and will resume under normal rules after the affected contracts resume trading. |
Example
Suppose a stock is undergoing a stock split where 1 share is split into 2 shares. The relevant stock contract executes a Rebase with an adjustment factor of 2. Before the adjustment, a user holds a long position of 5 contracts with an average entry price of 160 USDT, and the mark price at the time of adjustment is 200 USDT. The system first settles based on the pre-adjustment mark price, then restores the position under the new price system.
Item | Before Adjustment | After Adjustment |
Position Size | 5 Contracts | 10 Contracts |
Average Entry Price | 160 USDT | 100 USDT |
Mark Price | 200 USDT | 100 USDT |
Unrealized PnL | 200 USDT | 0 USDT |
Realized PnL | 0 USDT | +200 USDT |
Position Value | 1,000 USDT | 1,000 USDT |
As shown, after Rebase, the position size increases, the mark price decreases, the unrealized PnL is converted to realized PnL and credited to the account balance, and the position value remains essentially unchanged.
If a user has an unfilled regular limit order before Rebase, the system will also convert it according to the new price methodology. Suppose the user had an unfilled regular limit buy order before the adjustment with an order price of 180 USDT and an order amount of 10 contracts. After Rebase, the order will be converted to an order price of 90 USDT and an order amount of 20 contracts, and re-placed.
Item | Before Adjustment | After Adjustment |
Order Price | 180 USDT | 90 USDT |
Order Amount | 10 Contracts | 20 Contracts |
If the converted order price, amount, or notional value does not meet the minimum precision requirements of the contract parameters, the order will not be restored.
Risk Disclaimer
Rebase is designed to adjust the contract's pricing basis and does not alter the market risk of the contract itself. After the adjustment, the price of the relevant contract may still experience significant fluctuations.
Before and after Rebase, the position value and account equity remain essentially unchanged; however, due to trading rules such as price precision, amount precision, minimum amount, and minimum notional value, minor differences may occur.
During Rebase, the relevant contracts are suspended from trading; some unfilled orders, take-profit/stop-loss orders, conditional orders, and strategy orders may be canceled or not restored.
The price of the relevant contracts is formed through platform market trading and does not represent the official valuation, issue price, or post-listing price of the underlying company; holding such contracts does not represent holding any stocks, securities, equity, or other ownership interests.
The specific affected contracts, execution time, resumption time, and handling arrangements shall be subject to the platform's announcements or the information displayed on the relevant pages.
Disclaimer
The content provided herein is for reference and educational purposes only and does not constitute any financial, investment, trading, or legal advice, nor does it constitute an offer or solicitation to buy or sell any digital assets. Gate makes no express or implied representations or warranties regarding the accuracy, completeness, or timeliness of the information contained herein. Product features, interfaces, rules, and fee structures may be updated or adjusted at any time. Please refer to the latest announcements and the actual information displayed on the Gate platform for the most accurate details.
Digital asset investments involve significant risk, and prices may fluctuate substantially. You may lose the entire amount of your investment. Please make decisions cautiously based on your own financial situation and risk tolerance after fully understanding the associated risks. If necessary, you are advised to consult an independent professional financial or legal advisor.
For more information about potential risks, please refer to Gate's Risk Disclosure and User Agreement.
