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 price system with the new underlying measurement, while maintaining the continuity of 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 shares, 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 are halted. Trading resumes once the adjustment is completed. |
Position Handling | The existing position is settled at the mark price before the adjustment, and then the position is reinstated under the new price system. |
P&L Handling | The original unrealized P&L is settled into realized P&L at the time of Rebase execution and credited to the account balance. |
Price and Quantity | The position size and mark price are proportionally inversely adjusted according to the new measurement, keeping the notional position value and account equity essentially unchanged. |
Regular Limit Orders | Any unfilled regular limit orders are canceled, then converted and re-placed according to the new measurement. Orders that do not meet trading rules will not be reinstated. |
Stop-Loss/Take-Profit and Strategy Orders | Stop-loss/take-profit orders, conditional orders, algorithmic orders, and certain strategy orders are canceled during Rebase and will not be automatically reinstated. |
Liquidation and Risk Control | During Rebase, liquidations and ADL are paused or postponed according to system rules, and resume under normal rules once the relevant 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 reinstates 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 P&L | 200 USDT | 0 USDT |
Realized P&L | 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 P&L is converted to realized P&L 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 measurement. Suppose the user had an unfilled regular limit buy order before the adjustment with an order price of 180 USDT and an order quantity of 10 contracts. After Rebase, the order will be converted to an order price of 90 USDT and an order quantity of 20 contracts, and re-placed.
Item | Before Adjustment | After Adjustment |
Order Price | 180 USDT | 90 USDT |
Order Quantity | 10 Contracts | 20 Contracts |
If the converted order price, quantity, or notional value does not meet the minimum precision requirements of the contract parameters, the order will not be reinstated.
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, quantity precision, minimum quantity, and minimum notional value, minor differences may occur.
During Rebase, the relevant contracts are suspended from trading; some unfilled orders, stop-loss/take-profit orders, conditional orders, and strategy orders may be canceled or not reinstated.
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 shares, 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 page displays.
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](https://www.gate.com/legal/risk-disclosure) and [User Agreement](https://www.gate.com/user-agreement).
