> ## Documentation Index
> Fetch the complete documentation index at: https://docs.qfex.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Corporate Actions

> QFEX Policy on Equity Corporate Actions

## 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).

## 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.

## Stock Splits and Reverse Splits

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

### 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.