In the stock market, listed companies may distribute cash dividends. When the underlying stock of a TradFi perpetual contract pays a cash dividend, the stock's market price typically drops by approximately the dividend amount on the ex-dividend date. Without any adjustments, holders of long positions (buyers) would suffer an unfair loss, while holders of short positions (sellers) would receive an unfair gain.
Therefore, Bybit will execute a cash dividend settlement for TradFi perpetual contracts prior to the ex-dividend date: long position holders will receive economic compensation equivalent to the dividend amount, while short position holders will be required to pay the corresponding amount.
Applicable Contracts
Cash dividend adjustments apply to stock perpetual contracts with U.S. stocks or U.S. ETFs as the underlying asset (e.g., AAPLUSDT, TSLAUSDT, QQQUSDT).
Note: Currently, stock contracts with Korean, Japanese, or Hong Kong stocks as the underlying asset do not support cash dividends.
Overall Process
Phase 1:
— Bybit will publish an official announcement, typically 3 business days in advance for contracts requiring cash dividend settlement, including the dividend amount and the exact settlement time.
— Users with positions holding are advised to review their positions and ensure sufficient account margin in advance.
Phase 2:
— When the settlement time specified in the announcement is reached, long position holders will receive the corresponding cash dividend amount (in USDT)；short position holders will be required to pay the corresponding cash dividend amount (in USDT).
— Traders will only pay or receive the dividend if they hold a position at the time of cash dividend settlement. If the position is fully closed before the settlement time, no cash dividend will be paid or received.
Cash Dividend Settlement Timing
For U.S. stock contracts, the dividend settlement occurs at 20:00 Eastern Time on the calendar day prior to the stock's ex-dividend date.
- During Daylight Saving Time (DST): 00:00 UTC on the ex-dividend date.
- During Standard Time (non-DST): 01:00 UTC on the ex-dividend date.
Note: To prevent liquidation caused by insufficient margin from cash dividend settlement, Bybit may, depending on the dividend amount, split the settlement into multiple tranches. Please refer to the cash dividend announcement for each stock contract for details.
Receives or Pays the Dividend
Cash dividend settlement depends on the direction of your net position at the time of settlement.
Cash Dividend Calculation
Cash dividends are settled based on the net position quantity in your account.
Net Position Quantity
Net Position Quantity = Long Contract Quantity − Short Contract Quantity
- A positive value indicates a net long position.
- A negative value indicates a net short position.
- A value of zero means the long and short quantities fully offset each other, and no dividend is received or paid.
Dividend per Contract
Dividend per Contract = Dividend per Share × USDT Exchange Rate × Contract Size Multiplier
The dividend per share of the underlying stock is typically denominated in a currency other than USDT, such as USD for U.S. stocks. It is therefore converted into USDT using the applicable exchange rate.
Contract Size Multiplier represents the number of underlying shares represented by each Tradfi contract. For most Bybit TradFi, the Contract Size Multiplier is 1, meaning 1 size contract represents 1 underlying share. To view the Contract Size Multiplier for a specific contract, please refer to the corresponding Contract Details page.
For a Net Long Position
Dividend Amount Received = Dividend per Contract × Net Long Position Quantity
For a Net Short Position
Dividend Amount Paid = Dividend per Contract × Net Short Position Quantity
Example
For the following examples, assume the following values:
Dividend per Share: 0.50 USD
USDT Exchange Rate: 1.00
Contract size Multiplier: 1
Dividend per Contract: 0.50 USDT
Example 1: Net Long Position
Trader A holing Positions:
Long Position = 120 Contracts
Short Position = 20 Contracts
Net Position Quantity
= 120 − 20
= 100 Contracts (Net Long)
Dividend Received
= (0.50 x 1 x 1) × 100
= 50 USDT
Since the account holds a net long position, the user will receive 50 USDT in cash dividends.
Example 2: Net Short Position
Trader B holing Positions:
Long Position = 30 Contracts
Short Position = 80 Contracts
Net Position Quantity
= 30 − 80
= −50 Contracts (Net Short)
Dividend Paid
= (0.50 x 1 x 1) × 50
= 25 USDT
Since the account holds a net short position, the user will pay 25 USDT in cash dividends.
Example 3: Fully Hedged Position
Trader C holding Positions:
Long Position = 100 Contracts
Short Position = 100 Contracts
Net Position Quantity
= 100 − 100
= 0 Contracts
No dividend is received or paid.
Since the long and short positions fully offset each other, the account has no net dividend exposure.