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Overview

Corporate actions are events initiated by a public company that affect the securities (equity or debt) issued by that company. For users familiar with crypto markets:
  • Dividends are analogous to airdrops or staking rewards.
  • Stock Splits are similar to token re-denominations (like the DOT split).

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General Policy

QFEX does not adjust positions or margin for most corporate actions, including cash dividends. We rely on the efficient market hypothesis: the market prices in these events. The impact of a corporate action is naturally reflected in the Mark Price as traders adjust their valuations leading up to the event.

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Stock Splits and Reverse Splits

Exceptions are made for stock splits and reverse stock splits to ensure position continuity and accurate PnL tracking.

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The Procedure

When a stock split or reverse split occurs, QFEX executes the following process:
  1. Trading Halt: Trading is suspended at the close of the post-market session on the day before the split effective date.
  2. PnL Realization: All open positions have their PnL realized (settled) at the last known Mark Price.
  3. Re-opening: Positions are immediately re-opened with adjusted parameters:
    • Quantity: Multiplied (or divided) by the split ratio.
    • Mark Price / Entry Price: Divided (or multiplied) by the split ratio.
This mechanism ensures that the notional value of your position remains neutral across the split, preventing artificial liquidation or profit spikes.